What is the Economic Effect of Data Centers?
There are mini investments that produce healthy returns and create both enormous tax revenue and new jobs. A few of them are as repeatably successful as the modern data center. According to a recent U.S Chamber of Commerce report, the average economic impact for a data center is approximately $32.5 million. This report also shows that $9.9 million in revenue is typically generated during the data center construction process.
The same report shows that data centers provide jobs for around 1,688 local workers while paying out an astonishing $77.7 million in labor wages while producing $243.5 million in output through local surrounding supply chains.
For taxes, AreaDevelopment.com states that tax revenue from data centers is explicitly a massive win for the local and state governments. At the state level, taxes are generated from employee jobs, equipment purchases, and sales tax generation through construction purchases. At the community level, sales and real estate taxes are two of the most significant avenues of new tax revenue.
The Economic Effect of Data Centers
The household name for search engines also has a bustling data center business. According to a report from Oxford Economics, Google data centers generated $1.3 billion in economic activity in 2016 alone while also providing around $750 million in labor income and 11,000 jobs throughout the United States.
Housing and the Local Economy
This is incredible, showing how much economic assistance is provided from a big room full of servers. Jokes aside, these Google data centers stimulate the economy in other, less measurable ways. For example, in the housing market: Employees from the data center helps fill vacant rentals and assist with housing growth due to the sudden influx of new people in an area. What do all of those employees do when they’re not working? They shop, eat, and patronize local amenities.
Data Centers and the Environment
Regarding energy, Google has committed to providing renewable energy generation for its data centers. Their data centers helped to create $2.1 billion in renewable energy projects, including wind and solar. This creates even more jobs during construction while also providing recurring jobs across the country.
Other Data Centers
Giant monoliths like Microsoft and Amazon also contribute similar economic impacts with their data center creation. Other big names to watch out for in the data center space include Dell, Hewlett Packard, Inspur, Facebook, Apple, and Salesforce.
Data Centers Are Revenue Wins
The average data center creates tremendous revenue generation wherever they are placed. From jobs, tax revenue, and renewable energy projects, they inject vast spikes of income that help communities become bigger and better than ever before.