Seattle sheds construction jobs as data center boom skips it

Seattle's construction sector experienced a 2.4% decline, losing approximately 1,700 jobs between April 2025 and April 2026, positioning it among the worst-performing metros nationally, according to the Associated General Contractors of America. This downturn stands in stark contrast to a 28% national surge in data center construction spending, a boom that has largely bypassed the Seattle region. Ken Simonson, AGC's chief economist, attributed Seattle's decline primarily to a lack of data center development, despite high interest rates and input costs affecting projects nationwide.

The Seattle City Council unanimously enacted a one-year moratorium on large data center projects in June, effectively deterring these facilities from the region. This decision comes at a challenging time, as the city's core construction segments, including office development and housing, are already slowing. Consequently, data center developers are opting for locations offering more affordable land, abundant power, and fewer regulatory obstacles, citing examples such as Microsoft's operations in Quincy, Washington; Google's expansion in The Dalles, Oregon; and Amazon's project west of St. Louis.

Federal officials, including the Trump administration and Alex Fitzsimmons, then-acting Undersecretary of Energy, have criticized the moratorium. Fitzsimmons, speaking on The Jason Rantz Show, highlighted that blocking data center facilities poses a national security and privacy risk. He emphasized the importance of building this critical infrastructure within the United States rather than in nations with questionable privacy rights. Despite these federal warnings, Seattle officials proceeded with the ban.