The construction industry, long a cornerstone of economic development, is grappling with a new reality in Central Ohio. The region, once a poster child for economic revitalization through industrial and manufacturing incentives, is now betting its future on a high-tech innovation hub dubbed “Silicon Heartland.” This shift, however, is revealing a stark contrast between the promises of tech-driven growth and the actual economic benefits, particularly in the realm of data centers.
Central Ohio’s strategy to attract major technology companies with multimillion-dollar tax subsidy packages has indeed brought in significant investments. Companies like Amazon, Google, Meta, and QTS have flocked to the region, lured by generous incentives. However, the economic impact of these data centers is far from the high-paying job boom that officials had envisioned. A Business Insider analysis reveals that even the largest data centers employ fewer than 150 permanent workers, with some having as few as 25. The construction jobs created by these projects are short-term, often lasting less than a year, while the tax breaks for these companies can extend for a decade or more. This disparity means that the tax breaks given to developers can amount to over $2 million for every permanent, full-time job at an operational data center—eight times higher than the average per job in other economic development deals.
The economic implications are profound. Data centers, while generating significant short-term construction jobs, do not produce lasting employment opportunities. This raises questions about the long-term viability of such incentives. Economists and researchers argue that the costs to the public, including increased electricity bills and the need for new grid infrastructure, do not justify the limited job creation. The surge in electricity costs has even drawn opposition from major corporations like Walmart, which has cited rising electricity bills as a threat to its expansion plans in states like Ohio and Virginia.
Industry advocates, however, paint a different picture. Josh Levi, president of the Data Center Coalition, argues that each new data center in Ohio spurs significant investment, revenue, and wages, stimulating the state’s economy. He cited an estimate that data centers in Central Ohio supported over 10,000 construction jobs, 2,000 data center jobs, and hundreds of maintenance and retrofitting jobs last year. However, a closer look at specific deals, such as Google’s 2021 agreement with Columbus, reveals a more nuanced reality. In exchange for a 100% property tax abatement worth an estimated $54 million over 15 years, Google promised only 20 full-time jobs at the data center, rising to about 40 jobs by 2047. This stark contrast underscores the need for a more critical evaluation of the economic benefits of data center investments.
The rapid growth of data centers is driven by the accelerating demand for digital services, from social media to medical care. Tech giants like Meta, Google, and Microsoft are investing billions in data center construction and equipment. These companies argue that their investments will drive economic growth and local tax revenues. A February 2025 PwC report prepared for the Data Center Coalition estimates that data centers contributed $162.7 billion in federal, state, and local tax revenue in 2023 and supported 4.7 million jobs directly or indirectly through their supply chain.
However, the competition for these investments can lead to a race to the bottom, with states and cities offering increasingly generous incentives to attract data centers. This competitive landscape raises questions about the long-term sustainability of such economic development strategies. The concentration of large data centers in specific regions, such as Northern Virginia and Arizona’s Maricopa County, highlights the uneven distribution of economic benefits and the potential for regional disparities.
The construction industry, at the heart of this debate, must navigate these complexities. The shift towards high-tech innovation hubs and data centers presents both opportunities and challenges. While the short-term economic boost from construction jobs is undeniable, the long-term benefits in terms of sustainable employment and economic growth are less clear. The industry must advocate for a more balanced approach, one that considers the broader economic and environmental impacts of these investments.
As Central Ohio and other regions continue to pursue high-tech development, the construction industry must engage in a thoughtful dialogue about the true costs and benefits of data center investments. This includes advocating for policies that ensure long-term economic sustainability, fair distribution of benefits, and a commitment to environmental stewardship. The future of construction in the digital age depends on a holistic approach that balances economic growth with social and environmental responsibility.