The rapid expansion of artificial intelligence (AI) and cloud computing has led to a significant surge in data center construction, creating numerous employment opportunities across various sectors. According to a recent study by PwC, the data center industry contributed 4.7 million jobs to the US economy between 2017 and 2023. However, these positions are not limited to major tech companies like Amazon, Microsoft, Google, or Meta. Instead, much of the job creation stems from the multiplier effect, encompassing both direct and indirect roles. This article explores how the data center boom impacts employment beyond the tech giants.

While the data center market has experienced exponential growth, fueled by advancements in AI and cloud services, the majority of the jobs created are not directly within the technology sector. The construction phase of these facilities demands an extensive amount of skilled labor, including engineers, electricians, and HVAC technicians. For instance, when President Trump announced the Stargate project—a joint venture by OpenAI, Oracle, and SoftBank—he claimed it would generate over 100,000 American jobs almost immediately. Although this figure is debated, it highlights the perceived economic benefits of such infrastructure projects.

The study commissioned by the Data Center Coalition, an industry lobbying group, categorized jobs into three types: direct, indirect, and induced. Direct jobs involve the operation of data centers, while indirect jobs relate to the supply chain, and induced jobs result from local spending. Of the 4.7 million jobs attributed to the data center industry, only 603,900 were direct positions. The remaining 4.1 million jobs were considered indirect and induced, reflecting the broader economic impact on communities near these facilities.

Economic development experts remain divided on the accuracy of these figures. Some argue that the multiplier effect, which estimates that each direct job leads to another 7.5 jobs elsewhere in the economy, may be overstated. Nathan Jensen, a professor at the University of Texas, questions the validity of such high multipliers, suggesting that a more realistic estimate might be one or two. Despite these concerns, the construction phase of data centers undeniably provides substantial employment opportunities. John Boyd Jr., principal at The Boyd Co., emphasizes that the actual amount of on-site labor is enormous, with wages exceeding double the national average for construction workers.

Data centers also require routine maintenance and specialized services after completion, ensuring a continued need for skilled labor. Moreover, the clustering effect of data centers—where multiple facilities locate in the same area—further boosts local economies. This trend has led to increased occupancy rates at hotels and restaurants in regions like Jackson, Mississippi, and Columbus, Ohio. As the data center industry continues to expand, its influence on employment extends far beyond the tech giants, fostering job growth in unexpected areas and industries.

In conclusion, the data center boom has sparked significant job creation, particularly in construction and related sectors. While the exact number of jobs generated remains a topic of debate, there is no denying the positive impact on local economies. As more data centers are built, they will continue to provide employment opportunities and stimulate economic activity in various regions, proving that the benefits of this technological advancement extend well beyond the confines of Silicon Valley.