Study Finds U.S. Data Centers Add 100-200 Jobs but Leave Wages Flat
Updated
Updated · Brookings Institution · Aug 10
Study Finds U.S. Data Centers Add 100-200 Jobs but Leave Wages Flat
3 articles · Updated · Brookings Institution · Aug 10
Summary
Brookings-backed research tracking about 1,500 U.S. data centers found a county’s first large facility typically adds roughly 100-200 local jobs, while wages show no measurable increase.
Using 52 announced-but-canceled projects as a control, the authors said simpler comparisons overstate benefits because data-center counties were already growing faster before facilities opened.
Employment rose 56% in data processing and 43% in telecommunications over the first decade, but the telecom gains were concentrated in hyperscale campuses run by firms such as Amazon, Google and Microsoft.
Home prices increased 2%-5%, adding to concerns already driving policy backlash as more than 100 communities impose moratoriums and states reconsider incentives.
The paper argues subsidies may be misdirected: incentives equal about 2% of hyperscale investment but 62% for colocation projects, which generate smaller employment gains.