Data Centers Underperform in Permanent Job Creation Relative to Investment
Data centers are generating far fewer permanent jobs per investment compared to other sectors. This discrepancy raises concerns about the effectiveness of subsidies used to attract developers.
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In the data center industry, permanent job creation significantly lags behind other sectors. Research indicates that in Virginia, one permanent job is created for every $54 million invested, while in Iowa, a $576 million investment only requires 31 jobs, translating to one job for every $18.6 million.
In comparison, $1 million in other economic sectors typically supports 17 jobs. Critics assert that the low job creation rate suggests that employment should not be the primary factor in data center proposals, as substantial subsidies to developers may be more concerning.
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