Will AI data centers actually create as many jobs as promised? Probably not, new report warns

Date:
Thu, 10 Sep 2026 09:29:47 +0000

Description:
While earlier data centers could support lots of jobs, increasing efficiency and automation makes this less likely at bigger facilities.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Verdant argues some figures are overestimated by as much as 4-5x Steel and vehicle manufacturing are more likely to support jobs Megawatt growth doesn't correlate with job growth A
new Verdant report has argued data centers are unlikely to create as many
jobs as many companies and reports believe its latest estimations put all currently planned UK data centers at 10,400 permanent operational jobs, compared with the 40,200 jobs that industry body techUK projects.

techUK also claims that current data centers that are already in operation already support 24,300 jobs a figure that Verdant contests as being closer
to 4,400. Ultimately, Verdant criticizes other estimations including techUK's for using older figures based on smaller campuses, but as data centers grow and become increasingly automated, they require fewer staff. Latest Videos From TechRadar Watch full video here: Are data centers actually creating that many jobs? In short, Verdant explains that increasing automation means
compute capacity can expand without employment rising proportionally, so adding another megawatt of compute doesn't necessarily mean adding a fixed number of new workers. Therefore, its rough estimation of 1.2 jobs per MW for new developments isn't hugely representative of all facilities.

The report also expects employment density to decrease further as facilities get larger, comparing data centers unfavorably to steel plants, vehicle manufacturing plants, hospitals and schools. You may like Many new AI data centers will be built on US drought-hit areas AI data centers are draining more power than the grid can provide AI data center backlash has cost tech firms $130 billion in three months

"The briefing concludes that while data centres may offer other benefits, employment cannot credibly be the primary justification for continued rapid build-out," the company wrote, calling for a pause on construction and wider public discussion.

All of this, of course, against the backdrop of hyperscalers investing billions to grow their capacities, with each new campus and expansion promising hundreds or thousands of operational jobs and tens of thousands of related roles across the likes of construction. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/will-ai-data-centers-actually-create-as-many-job s-as-promised-probably-not-new-report-warns


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