Data Centers Promise Jobs. Where Will They Be In Years to Come?
You’ve probably already heard promises from technology companies about the jobs they’ll create. When companies announce new data center projects, this is their biggest selling point, and supporters of these projects describe these facilities as economic opportunities that will bring employment, investment, and long-term growth. For communities in Oregon and across the country, this promise can sound appealing; however, they are misleading to say the least.
Data centers do create jobs, especially during the construction of data centers, which require electricians, contractors, engineers, fiber installers, and utility workers. According to research from Brookings, countries that receive their first large data center see construction employment increase by about 11% over the course of several years. Information-centered jobs such as telecommunications, IT services, and software support can also expand in “hyperscale” facilities such as Amazon, Google, and Microsoft.
However, the problem is that the majority of these jobs are temporary. Once construction is complete, the number of permanent workers required to operate data centers is surprisingly low. Brookings explains that many facilities employ only “dozens to a few hundred” permanent workers after opening. Food & Water Watch found that Virginia data centers generate a measly one permanent job for every $13 million invested. From 2020 through 2025, no projects have created only one permanent job for every $54 million invested.
Communities have begun questioning whether the long-term economic benefits truly outweigh the environmental and financial costs, with many states offering major tax incentives to attract data centers, leaving residents to deal with rising electricity demand, water usage, and infrastructure strain. According to Food & Water Watch, Virginia has lost an estimated $673 million in tax revenue from data center exemptions in 2022 alone.
Artificial intelligence is beginning to reshape the workforce through the automation of repetitive and entry-level jobs vulnerable to the data centers that promise jobs. Nexford University reports that customer service positions, bookkeeping, warehouse, retail, and data analysis jobs are most likely to be automated. Yale Insights explains that AI is also reducing job opportunities for recent graduates and entry-level workers, particularly in software engineering and customer support. Still, other professions do not face the same risks. Jobs that require leadership, hands-on work, and human judgment are ones that will be difficult to replace. These include teachers, psychologists, managers, lawyers, and surgeons who are least likely to be fully automated.
As communities country-wide continue witnessing and debating on data center expansions, communities should look beyond promises of jobs and realize that these jobs aren’t built to last. While these facilities support important technology systems, they raise concerns about long-term employment, public resources, and sustainability. Technological advances may bring opportunities, but communities should carefully consider the true benefits in the long run.
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