AI and cloud computing have fueled an unprecedented expansion in data centers, leading to a surge in job creation across the U.S. But while industry giants like Amazon, Microsoft, Google, and Meta are investing billions in infrastructure, most of these jobs won’t be inside Big Tech. Instead, they’re being generated in unexpected sectors, from construction to local service industries.
According to a PwC study, data centers contributed 4.7 million jobs to the U.S. economy between 2017 and 2023, marking a 60% increase. However, the vast majority of these jobs were not direct tech roles but rather the result of a “multiplier effect”—a widely used, yet controversial, economic model that estimates the ripple impact of major developments.
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The $320 Billion Investment Surge
Big Tech’s spending spree is only accelerating. In 2023, Amazon, Microsoft, Google, and Meta collectively poured $246 billion into capital expenditures, much of it fueling data center expansion. This year, that number is expected to climb to $320 billion. State and local governments have hailed these investments as game-changers for job growth, but the reality is more nuanced.
While data centers do generate thousands of jobs during construction, the number of permanent roles is far lower than many political statements suggest. For example, when Amazon announced its $10 billion data center expansion in Ohio, state officials touted the creation of “thousands” of jobs. Yet, official documents revealed only 1,058 new positions—none of which were required to be full-time or salaried.
The Data Center Job Hype: Breaking Down The Numbers
Of the 4.7 million jobs attributed to the data center industry in PwC’s study, only 603,900 were classified as direct industry jobs—full-time, part-time, or self-employed positions directly tied to data center operations. The remaining jobs were categorized as:
- Indirect jobs: Roles created to supply goods and services for data center construction and operations.
- Induced jobs: Jobs generated by increased local spending, spanning retail, hospitality, healthcare, and financial services.
A staggering 4.1 million of these jobs fell into the “indirect” and “induced” categories, prompting economic experts to question the accuracy of these figures. The study was commissioned by the Data Center Coalition, an industry lobbying group that includes Amazon, Microsoft, Google, and Meta, raising concerns about potentially inflated estimates.
The Construction Boom: The Real Jobs Engine
While the long-term employment impact of data centers remains debatable, one thing is clear: construction is where the real job boom is happening. Building a data center is a highly specialized process requiring expertise in cooling systems, natural gas turbines, and advanced server installations.
Construction wages for data centers are more than double the national average, attracting a skilled workforce that often travels and remains in an area for months or even years. This demand has driven higher hotel occupancy rates in cities near major data center hubs. Executives from Wyndham Hotels and Resorts have reported increased demand in places like Jackson, Mississippi, and Columbus, Ohio, as workers flood in to build out new facilities.
The Future Of Data Center Jobs: A Cluster Effect
The data center industry has a well-documented “clustering” effect: once one facility is established in a region, others tend to follow. This pattern ensures that construction and maintenance jobs remain in high demand, even as direct employment in individual data centers remains relatively low.
Ongoing maintenance and operational roles, while limited in number, require specialized skills that continue to create opportunities for highly trained professionals. The growing demand for AI-driven infrastructure will likely sustain these construction and maintenance job pipelines for years to come.
A Reality Check On Job Creation
The AI data center boom is undeniably reshaping local economies, but the narrative around mass job creation needs scrutiny. While construction and indirect economic benefits are significant, the long-term employment impact is far lower than political soundbites suggest.
With trillions of dollars expected to flow into AI infrastructure over the next decade, the real question is not just how many jobs are created but who truly benefits from this technological shift. Policymakers, industry leaders, and local communities will need to navigate this evolving landscape carefully to ensure that the economic rewards are widely shared.
