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The AI data center boom will create new jobs. Most won't be at Amazon, Microsoft, Google, or Meta.
- A PwC study found that data centers contributed 4.7 million jobs to the US economy from 2017 to 2023, with most of the jobs attributed to the 'multiplier effect.'
- President Donald Trump claimed AI project Stargate would create over 100,000 American jobs, although little evidence supports this.
- Data centers have rapidly grown, with a PwC study reporting a 60% increase in data center-related jobs from 2017 to 2023.
- However, most jobs created by big tech companies like Amazon, Microsoft, Google, and Meta through data center projects are not direct tech jobs.
- The accuracy of job creation claims by the data center industry has been debated among economic development experts.
- Data center investments by tech giants are expected to continue, with significant capital expenditures allocated for expansions.
- A large portion of the jobs attributed to the data center industry are categorized as 'indirect' and 'induced,' rather than 'direct' industry jobs.
- Economists question the methodology of quantifying induced and indirect jobs in the data center industry, highlighting potential inaccuracies.
- Construction jobs play a significant role in data center development, requiring skilled labor ranging from cooling systems to specialized server equipment.
- Data center construction leads to economic benefits for various sectors, such as increased demand for hospitality services due to the influx of construction workers.
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