A recent report by PwC, commissioned by the Data Center Coalition (DCC), highlights the significant impact of the U.S. data center industry on the national economy from 2017 to 2021.
During this period, the industry contributed $2.1 trillion to the U.S. Gross Domestic Product (GDP) through direct, indirect, and induced effects.
The report, titled "Economic, Environmental, and Social Impacts of Data Centers in the United States," reveals that direct employment in the data center industry grew by 17% from 2017 to 2021, while overall U.S. employment increased by only 2% during the same time frame.
Additionally, the data center industry made substantial tax contributions amounting to $403.5 billion to federal, state, and local governments from 2017 to 2021, resulting from both direct and indirect impacts.
The total contribution to U.S. government revenues at all levels increased by 50% from 2017 to 2021, underscoring the industry's expanding role in the economy.
Allison Gilmore, vice president of DCC and leader of the organization’s research initiatives, noted, "There is unprecedented demand for digital services from individuals and organizations of all sizes and industries, including telehealth, video conferencing, e-commerce, government services, education, and entertainment. As a result of this demand, the data center industry is rapidly growing. This report shows that the benefits provided by the data center industry extend far beyond meeting our increasing digital data needs. Data centers are now essential infrastructure, facilitating advancements in our modern digital economy."
According to estimates from a report by PwC for the Data Center Coalition, over 468,000 people are employed in data centers across the United States.
From 2017 to 2021, direct employment in data centers grew by 17 percent, while overall U.S. employment only increased by 2 percent during the same period.
PwC conducted a comprehensive analysis of the U.S. data center industry's economic, environmental, and social impacts from 2017 to 2021. This evaluation covered the national level and focused on three specific states—Arizona, Ohio, and Virginia—chosen for their significance to the data center industry and diverse market sizes. The report further examines the industry's environmental and social contributions through surveys among DCC members.
As our lives become increasingly digital, the data center industry is stepping up to meet the surge in demand while driving innovations in energy efficiency and sustainability.
Leading data center companies have committed to purchasing clean energy and are heavily investing in new clean energy solutions to support the electrical grid, making the industry one of the largest purchasers of sustainable power in the United States.
Furthermore, data center companies across the nation are investing in their local communities by supporting programs in science, technology, engineering, arts, and mathematics (STEAM) education and workforce development.
They also volunteer with neighborhood organizations, enhance connectivity in rural areas, and undertake various beneficial initiatives.
According to Tyrone Taborn, CEO of Career Communications Group (CCG) and publisher of Women of Color magazine, plans are underway to establish a pilot data farm at the newly rehabilitated Thurgood Marshall Amenity Center in West Baltimore.
CCG's metaverse initiative, known as STEM City, aims to position Baltimore as a significant player in the data economy.
Taborn emphasized that Baltimore's efforts align with broader legislative measures, including support for the AI Oversight Bill introduced by Senator Cory V. McCray.
This bill is designed to ensure ethical and transparent AI development, which is essential for managing the vast amounts of data generated by these new facilities.
Moreover, STEM City is advocating to enhance data security and provide economic benefits for the city.
"Establishing a local data farm in Baltimore is not just about technology—it's about revitalizing the community," Taborn stated. "The Thurgood Marshall Amenity Center symbolizes transformation, representing how cutting-edge technology can bring new life to underserved areas. By anchoring data operations in West Baltimore, this project promises to create jobs, promote education in AI and technology, and attract further investments."