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Courses › Data Centers in Your Community: Power, Water, Land, Money

Lesson 6 of 9 · about 15 minutes

Jobs: Construction Crews and Permanent Staff

You'll be able to

  • Tell construction jobs from permanent operating jobs and job-years from jobs
  • Compute incentive cost per permanent job with the math shown
  • Name the strongest evidence for and against data center job claims
  • Check whether a job claim states its unit, its time period and who produced it

Data centers create a lot of jobs for a short time and a modest number for a long time. Almost every dispute about job claims comes from blurring those two.

Virginia's JLARC found in 2024 that each data center building takes about 12 to 18 months to build, with up to roughly 1,500 workers on site at peak. Once it opens, a typical 250,000-square-foot building has about 50 full-time workers, roughly half of them contractors. Those jobs tend to pay well: electricians, mechanical technicians, network engineers, security.

Statewide, JLARC estimated the industry supports about 74,000 jobs, $5.5 billion in labor income and $9.1 billion in GDP a year in Virginia. The same report said most of those benefits come from the construction phase. In Virginia, construction never stopped, because new buildings kept starting. A county with one campus will see a construction wave and then a much smaller permanent staff.

Units that get mixed up

Phrase you hearWhat it might really meanAsk
"2,000 jobs"Peak construction headcount for a few monthsPeak or average? How many months?
"3,000 jobs"Job-years over a multi-year buildJobs or job-years?
"500 jobs supported"Direct plus indirect plus induced, from a modelWhich model? Who paid for the study?
"50 permanent jobs"On-site staff, may include contractorsEmployees or contractors? Local hires?

Example: turning a headcount into job-years

A campus has three buildings, each built over 16 months. Average crew is 900 (peak 1,500). Buildings overlap partly, so total construction runs 30 months.

  • One building: 900 workers x 16 months = 14,400 worker-months = 1,200 job-years.
  • Three buildings: 3,600 job-years.
  • Spread over 30 months (2.5 years): 3,600 / 2.5 = an average of 1,440 people working at once.

So "3,600 jobs" (job-years), "1,500 workers at peak" and "1,440 on average" are all accurate descriptions of the same work. Whichever one you repeat, label it.

Cost per job

Cost per job is the incentive value divided by the jobs. It is simple and it is blunt, so say exactly what went into it.

Example: one job count, priced several ways

Invented Harlow County gives up $8.8 million a year in property tax for 10 years. The state sales tax exemption is worth an estimated $30 million over the same period. The campus promises 60 permanent jobs.

  1. County only, per year: $8,800,000 / 60 = about $146,700 per job per year.
  2. County, 10 years: $88,000,000 / 60 = about $1.47 million per job.
  3. County plus state, 10 years: $118,000,000 / 60 = about $1.97 million per job.

For comparison, CNBC reported one Microsoft site in Illinois got more than $38 million in exemptions and created 20 permanent jobs, about $1.9 million per job when you divide one figure by the other.

Supporters object, with reason, that cost per job ignores the tax base. A data center may pay more in remaining property tax each year than the incentive costs, and its workers need few public services. The fair approach is to put cost per job next to net revenue whenever either one comes up.

Models, multipliers and "jobs supported"

Big job numbers in developer releases usually come from an input-output economic model. The model takes construction spending and operating spending, then estimates three layers: direct jobs on site, indirect jobs at suppliers, and induced jobs created when all those workers spend their pay at grocery stores and car dealers. The ratio of total jobs to direct jobs is the multiplier.

Multipliers are real economics, but they carry assumptions that the public rarely sees. The biggest one is where the money is spent. If the steel, switchgear and servers come from out of state, and half the crew lives in out-of-state hotels for 16 months, much of the spending leaks out of the county. A model built for the whole state will show more local benefit than a single rural county actually gets.

Example: how one assumption moves the answer

A study for invented Harlow County assumes $900 million of construction spending and a statewide multiplier of 1.8 on 1,200 average direct construction jobs.

  • Study's total: 1,200 x 1.8 = 2,160 jobs "supported" during construction.
  • Suppose only 40 percent of direct workers live in the county. Local direct jobs: 1,200 x 0.40 = 480.
  • Apply a smaller county-level multiplier of 1.3 to those local jobs: 480 x 1.3 = 624.

Both numbers can be defended. One answers "what happens to the state economy," the other "what happens in this county." When the study comes up at a hearing, ask which question it answered, and who paid for it.

Question for any job studyWhy it matters
Which model and what geography (county, region, state)?Larger areas capture more spending and show bigger multipliers
Who commissioned it?Industry-funded studies are not wrong by default, but the public deserves to know
Jobs or job-years?The same work can be counted either way
Local hiring assumption?Traveling crews leak spending out of the area
Does it subtract anything?Few studies count farm jobs or other projects displaced

Virginia's JLARC used its own modeling for the 84-jobs-per-million figure, which makes it more independent than a developer study. In an October 2026 Cardinal News opinion piece, independent researcher Tommy Turner points to a PwC study commissioned by the Data Center Coalition, the industry trade group, as another source that circulates widely. Name the sponsor every time.

The strongest case on each side

For the job claims

JLARC's incentive reviews, as reported in a June 2026 Cardinal News opinion column by Dwayne Yancey, found the data center exemption produced 84 jobs per $1 million of exemption. JLARC's 2025 report put the average across all the incentives it reviewed at about 58. The permanent jobs pay well and do not require a four-year degree in many cases. Construction trades see sustained demand in active markets: Turner, using federal union filings, found inside electrical construction union membership grew 17.3 percent faster in hyperscale metros than in comparable ones through 2025. He built that series himself, since no published one exists, so treat it as one researcher's estimate.

Against the job claims

Permanent jobs are few for the capital involved. Idaho's exemption needs only 30 jobs for $250 million. Turner also noted that JLARC's 50-jobs figure came from data center representatives and matches Virginia's statutory threshold, so it may reflect the requirement rather than independent counts. Construction crews are often traveling specialists, so local hiring may be thinner than the announced number. And construction jobs end, which matters most in a county that will only ever host one campus.

When a project promises "jobs," find out whether the number means construction headcount, job-years or permanent staff before you repeat it.

Moses Lake, Washington, is a good check on hydro-powered industrial promises. Group14 built a 1-million-square-foot battery materials campus there and Sila a plant of more than 600,000 square feet, both citing cheap hydropower. REC Silicon halted polysilicon production there in December 2024, and OneD closed its pilot plant in May 2025, less than a year after opening it, the Moses Lake news site Source One reported. Pierson's What Power Really Costs Idaho was written before some of those closings; date your examples.

Common mix-ups

  • Claim: A data center will employ thousands. What the evidence shows: During construction, yes, for a year or two per building. Operating staff is typically dozens per building.
  • Claim: Data centers create no jobs. What the evidence shows: They create well-paid technical jobs and large construction employment. The count is small relative to investment.

Reporting angle

  • Ask for permanent jobs, contractors and construction jobs as three separate numbers, with wages.
  • Ask what share of construction workers are expected to be local, and how that will be tracked.
  • Request state reports on whether incentive recipients met job targets.
  • Find out who paid for any economic impact study and which model it used.

Research angle

Check yourself

1. JLARC's 2024 report says a typical 250,000-square-foot data center employs about how many full-time workers?

2. A developer says a project will create '3,000 jobs.' Construction lasts 18 months with 2,000 workers at peak. What should you ask first?

3. A county gives up $8.8 million a year in property tax for a campus with 60 permanent jobs. What is the annual cost per permanent job?

4. Researcher Tommy Turner pointed out that the 50-jobs figure JLARC cited may reflect what?

5. Which of these is the strongest pro-jobs evidence in the Virginia studies?

Terms in this lesson

Job-year
One person employed full-time for one year. Two years of work by 500 people is 1,000 job-years.
Permanent job
An ongoing operating position, such as a technician or security officer, that lasts after construction ends.
Indirect and induced jobs
Jobs at suppliers (indirect) and jobs supported by workers spending their pay (induced), estimated by economic models.
Cost per job
Incentive value divided by jobs created. Say whether it is per year or over the life of the incentive.

Full glossary

Sources