Data centers can bring significant investment to a community, but permanent job creation may depend on the type of facility being built.
A Governing article encourages local governments to take a close look at projected employment benefits before approving projects or negotiating incentive agreements.
From the article:
The large facilities most often pitched to communities under financial pressure are colocation centers — essentially landlord operations that rent space, power and cooling to multiple tenants who bring their own servers. They require minimal personnel to run: typically 20 to 30 permanent staff per 100 megawatts.
Larger hyperscale campuses operated by major technology companies may support more jobs, but they are generally located in regions with established technology infrastructure.
According to the Brookings Institution, a study examining 770 data centers across 93 counties found that permanent job creation was often significantly lower than initial projections. State-level reviews have reached similar conclusions. A report from Virginia’s Department of Taxation found the industry added 1,610 jobs statewide in fiscal year 2025 while receiving approximately $1.9 billion in tax incentives. In Georgia, an official employment audit was later revised downward after initially overstating the number of jobs associated with data center incentives.
These findings underscore the value of thorough due diligence before finalizing development agreements. Local governments may benefit from confirming the type of facility being proposed, seeking written and enforceable commitments for permanent employment, and reviewing outcomes from comparable projects in other jurisdictions.
As data center development continues to expand nationwide, understanding realistic employment expectations can help weigh the full economic impacts of these projects and negotiate agreements that align with local priorities.
