AI data centers are job deserts

There are a lot of big promises being made about the jobs created by the AI boom, specifically around data centers. The thousands of people that are on site to build these things gives a misleading picture. The reality is data centers just don't employ that many people. The 1 million sq ft facility in Abilene Texas that OpenAI is set to use right now is projected to employ 100 people full time. That's one fifth the number of people who will be working in a nearby cheese packing plant that is a fraction of the size. I looked into the claims and realities around jobs and data centers in my latest piece for The Wall Street Journal

Who’s Really Winning from AI Data Centers? (And Who Thought They Would, But Aren’t) AI is booming, and data centers are popping up everywhere. But while they promise jobs and economic growth, the reality isn’t always so simple. So, who’s actually cashing in? ? Winners: The State & Local Governments – Raking in tax revenue (property, sales, and sometimes energy taxes). Construction Workers – Data centers don’t build themselves. For a few years, this industry sees major gains. Commercial Real Estate Owners – If you own the land or buildings, you’re sitting on a goldmine. Utilities (Power & Water Providers) – Data centers are energy-hungry, and someone has to supply it. Tech Giants – The real winners. These companies invest in AI infrastructure, then monetize it at scale. But not everyone benefits as expected… ? Those Who Thought They’d Win (But Aren’t): Local Job Seekers – AI data centers are mostly automated. Once built, they need just a handful of full-time workers. Small Businesses Nearby – Unlike manufacturing plants, data centers don’t bring large, steady workforces who eat, shop, and live locally. Local Economies in the Long Run – Once tax incentives expire, and minimal ongoing labor is needed, some towns realize they got less than they bargained for. AI data centers do drive economic activity—but mainly during construction and for a select few industries. The long-term impact? Not as widespread as many expected. What’s your take? Are AI data centers a real economic boost or just a short-term win? Let’s discuss. ?? #AI #DataCenters #Economics #FutureOfWork

Jobs per sqft is a silly metric. We don't ask farmers how many jobs they create per square foot of land, nor do we ask this of fishermen who cover huge swaths of ocean. There are plenty of reasonable things to critique (particularly the politicians touting job creation because they like ribbon cuttings in front of big buildings), but jobs created per square foot is an arbitrary metric.

I think this needs to be restated. Data centers are job deserts. They require construction workers to build what amounts to a very large warehouse, but once that warehouse is completed, you occasionally just need someone to replace servers when enough of them go down, and maybe a security guard or two. Indeed, I wouldn't be at all surprised to see such data centers relying upon robots to do the plug and play of modular server boxes. This is why I'm so mystified about Apple's claiming to add 20K new jobs. It's not going to come from staffing data centers, fabs are mostly automated, and R&D may account for perhaps 200-300 of those jobs, but at best I can see a reasonable case for them to hire about 1/10th of that total.

Outdated way to view this from the WSJ! Yes… AI will eliminate several jobs. Most of them being white collar jobs requiring college degrees. 1 out of 4 kids will graduate from college this May with a degree that’s been made obsolete already because of technology! Yes… AI will create more jobs than they eliminate. Those jobs will NOT require a college degree! AI will create more opportunities to build back the middle class than all other industries! 90% of the jobs that AI will create haven’t even been invented yet! Someone needs to build and deliver AI data centers… those jobs will be high paying and not require college degrees! https://lnkd.in/gds6ufyS

Datacenters are designed to be lights-out meaning it has one of the lowest number of workers per sqft among other types of buildings. Perhaps only after public storage. #datacenters #artificialintelligence

Companies are replacing us with AI. It's no longer a theory, we're watching it play out in real time, both at the corporate and federal government level. "But AI will create new jobs." When? Where? #AskingForAllOfUs

The AI Data Center Boom is a job creation bust? This article by The Wall Street Journal seems to think so, but it feels like a bit short sighted. While it's true that many of the jobs created by datacenters lean towards the construction era, these developments bring opportunities for economic investment, and a reimagining of how we use the waste products of such facilities. Two opportunities really start to take shape the further you dive into this: 1. The Opportunity to build community around these developments 2. The Urbanization of Datacenters with Private AI as a driver The 1st is an opportunity for new communities and innovation centers to be built around these investments. Given the large power needs, but volatility of peak demand, entire communities could be powered by this. This means job creation in places these may not have existed. The 2nd opportunity is for us to reimagine the role datacenters play in operating a smart and sustainable city. Bringing datacenters into an urban environment allows for a number of new use cases for the excess energy, heat, and waste water from operating such facilities. Especially for a city like Chicago where heating can cost a pretty penny for a given building and community. https://lnkd.in/gSeNKZf4

Slowly people are waking up to datacenters not being an economic boon for an area (beyond the initial investment of construction work). That doesn't even factor in the strain on utilities they can cause when placed in environmentally unsuited or resource constrained areas.