Beyond Data Centers

Data centers are just one part of Virginia’s growing digital infrastructure ecosystem that sparks ripple effects throughout the economy, by adding new jobs, fueling innovation, and driving growth across the state.

Data centers are one visible component of a much larger ecosystem that supports modern economic activity. That ecosystem includes robust terrestrial fiber networks, regional and intercity network rings, internet exchange points, subsea cables, satellite uplinks, secure facilities, and reliable, resilient energy systems. Together, these assets form the backbone of industries that now define competitiveness – advanced manufacturing, logistics, healthcare, defense, research, and artificial intelligence.

As demand for digital infrastructure surges, a wide network of industries is activated to support it, including HVAC, electrical contracting, steel and sheet metal fabrication, construction, engineering, and advanced manufacturing. These sectors provide the materials, labor, and expertise needed to build and maintain the data-driven backbone of our economy.

Beyond construction, data centers generate ongoing demand for local vendors and skilled trades, creating thousands of well-paying, long-term jobs in communities that might not otherwise see this kind of investment. From supplying custom ductwork and power systems to managing climate control and maintenance, companies across the Commonwealth are deeply embedded in the data center supply chain.

This interconnected ecosystem strengthens local economies, fuels innovation, and reinforces Virginia’s leadership in the digital age.

The data center industry contributes an estimated 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in annual GDP to Virginia’s economy, according to a 2024 report by the Joint Legislative Audit and Review Commission (JLARC).

A growing number of businesses operate in Virginia because of the data center sector, including companies that manufacture power transformers and other power solutions, cooling equipment, raised access flooring, and protective packaging for backup power systems.

Those jobs, in turn, support additional employment across the broader economy – from suppliers and logistics providers to positions in hospitality, retail, and transportation.

Economic studies underscore the scale of the industry’s ripple effects. Data center jobs have a powerful multiplier effect across the broader economy.

Mangum Economics found that for every job inside a Virginia data center, an additional 3.5 jobs were supported elsewhere in the state in 2023, excluding construction. A separate PwC analysis found that nationally, each direct data center job supported an average of 6.5 additional jobs between 2017 and 2023.

These jobs extend well beyond construction and tech, generating employment in local restaurants, hotels, retail, and other service-based businesses that benefit from increased activity and investment in the region.

ColonialWebb’s Nathan Wethington talks about how important Virginia’s digital infrastructure ecosystem is to the Henrico County-based company.

Acoustical Sheetmetal Co. CEO Margaret Shaia talks about how the Virginia Beach-based company has grown and added jobs largely because of Virginia’s digital infrastructure ecosystem.

Weidmuller USA’s President and CEO Randy Sadler talks about how the company has added new jobs and expanded its engineering and production facility in Chesterfield County to meet growing industry demand.

A growing number of businesses are operating in Virginia because of the data center industry. Here are some examples of companies supported by data centers: