Data Centers Add Jobs, But Not Where Expected

Data centers can generate between 1,000 and 1,300 jobs in local counties, though these positions are typically outside of direct data center operations and take several years to materialize. The employment boost is not instantaneous, with significant job growth only becoming apparent three to five years after a facility begins operation.

These jobs are largely concentrated in sectors such as transportation, warehousing, professional and technical services, and real estate, indicating that data centers stimulate indirect economic activity rather than directly boosting local retail and hospitality businesses. This finding challenges the assumption that data centers would foster widespread job growth in consumer-facing industries.

While the study, covering data centers opened from 2000 to 2023, demonstrates a positive job creation effect, it also notes limitations. The analysis did not account for the current wave of AI-focused massive data centers, nor did it assess the costs associated with these facilities, such as high energy and water consumption or tax incentives. Therefore, whether these job gains justify the overall community costs remains an open question.

The research tracked employment trends in counties with new data centers, comparing them to similar counties without such developments. This methodology helped isolate the impact of data centers, revealing that larger facilities correlate with greater employment gains. For instance, each additional megawatt of data center capacity was associated with approximately 7.4 more nonconstruction local jobs five years after installation.