Economic benefits
Data centers drive jobs, growth and community impact
Data centers bring significant economic benefits to Virginia, driven primarily by the industry’s large capital investments during construction. Most of this spending stays in the state, supporting Virginia-based contractors and suppliers.
“Data Center industry contributes an estimated:
74,000 jobs,
$5.5 billion in labor income, and
$9.1 billion in GDP annually
”
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.
While operational staffing is relatively lean — around 50 full-time workers per 250,000-square-foot facility — construction projects can employ up to 1,500 workers at their peak, according to a December 2024 report by the Joint Legislative Audit & Review Commission.
Each direct job in the data center sector supports over six additional jobs across the broader U.S. economy.
Statewide, the data center industry contributes an estimated 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in GDP annually, with much of this impact stemming from the construction phase.
Data centers can generate substantial local tax revenues for localities
Data centers generate significant local tax revenue — primarily from real estate and business personal property taxes on computer equipment.
Tax amounts vary based on facility size and local rates. Some jurisdictions lower equipment tax rates to attract data center investments, which can reduce immediate revenue.
For five localities in Virginia with relatively mature data center markets (Loudoun, Prince William, Mecklenburg, Henrico, and Fairfax), revenue from data center taxes ranged from less than 1 percent to 31 percent of total local revenue.
For instance, data center tax revenue in Loudoun County accounted for $733 million for the fiscal year that ended June 30, 2023. That represented 31 percent of the total county tax revenue.
In Prince William, data center tax revenue generated $110 million during the same time period, representing 7 percent of total local tax revenue.
Local tax revenue from data centers also are being reinvested to support long-term community needs and financial stability for local governments, according to a JLARC report.
Henrico County, for example, created a $60 million affordable housing trust fund from the local data center tax revenues to establish equitable housing opportunities for all residents.
Taxes on data center also has enabled Loudoun and Prince William counties to lower real estate tax rates and establish revenue stabilization or reserve funds.
Beyond taxes, data centers also spur public and private investment in roads, broadband expansion, and grid upgrades, which benefit residents and businesses alike.
Many data center operators actively engage in philanthropy and community partnerships, supporting local nonprofits, workforce training programs, and STEM education initiatives.
During the last couple of years, Meta, the parent company of Facebook, which has a large data center in eastern Henrico County, has donated more than $4 million to community nonprofit organizations, schools, and educational programs across the Richmond region.
Google is equipping Virginians with AI and job-ready skills, at no cost. As part of a broader $1 billion commitment, all Virginia-based college students now have access to the Google AI Pro plan and AI training for a year. The University of Virginia, Brightpoint Community College, and Northern Virginia Community College are part of the first cohort of the Google AI for Education Accelerator.
At Old Dominion University, Google announced a major partnership with in late 2025 to launch MonarchSphere, the first higher education AI incubator powered by Google Cloud, creating a hub for AI innovation, research, and training in Hampton Roads,.
Economic Impact
GDP
The U.S. data center industry contributed $727 billion to the nation’s GDP in 2023 — an increase of 105% since 2017, according to a report by consultant PwC report prepared for the Data Center Coalition.
When accounting for direct, indirect, and induced impacts, the industry generated a total of $3.46 trillion in GDP from 2017 to 2023.
For every dollar the data center sector added to GDP, an additional $2.50 was generated elsewhere in the U.S. economy.
Job Creation
The U.S. data center industry supported a total of 4.7 million jobs in data centers, as well as in the construction, telecommunications, power infrastructure, technology manufacturing sectors, and more, the PwC report said. That marked a 60% increase.
Direct employment in the U.S. data center industry grew by more than 50% between 2017 and 2023, five times the national employment growth rate of 10% over the same period.
Each direct job in the data center sector supports over six additional jobs across the broader U.S. economy.
Tax Revenue
The data center industry is an important tax contributor to the U.S. economy, making contributions at the federal, state, and local level that support the financing of important government and public programs and services. The industry’s total tax contributions increased 146% from 2017 to 2023, going from $66.2 billion to $162.7 billion — a 146% increase, according to the PwC report.
Over the 2017–2023 period, the industry generated $715.5 billion in total public revenue across all levels of government.
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