As data centers face backlash, new report points to economic benefits
A new report from the Sutherland Institute in Utah highlights the economic benefits of data centers, particularly in terms of construction employment and potential tax revenue, despite ongoing concerns about their high demands for water and electricity. The report differentiates between colocation and hyperscale facilities, noting that hyperscale centers tend to offer more long-term, high-skilled jobs. Meta's contributions to Utah County schools are cited as an example of community investment.
As proposed data centers in Utah face increasing scrutiny over their substantial water and electricity demands, a new report from the Sutherland Institute argues that these facilities also offer significant economic benefits. Ford Copple, a tech policy analyst and author of the report, examined the types, duration, and number of jobs generated by data center development.
The report distinguishes between colocation and hyperscale data centers, finding that both types generate considerable short- to medium-term, high-paying construction jobs, particularly for skilled trades like electricians. These construction jobs can last longer than commonly perceived due to the multi-year build times and continuous upgrade cycles of large facilities.
For longer-term employment, the report indicates that hyperscale facilities, especially those with advanced computing equipment or integrated power generation, tend to support more permanent, high-level technical positions. While Copple noted limited long-term data on the newest generation of AI-focused hyperscale data centers, studies suggest overall private employment rises 4-5% over five to six years, with wages increasing 3-4%.
Beyond employment, data centers can generate significant tax revenue, particularly benefiting smaller communities. The report also highlights direct community investments by operators, citing Meta's contributions of over $4 million to Utah County schools and more than 200 community grants since opening its Eagle Mountain data center.