"Kevin O'Leary has said his Utah data center development will create 10,000 construction jobs and 2,000 permanent roles. There's one problem: It probably won't. The "Shark Tank" investor may have overstated the data center's hiring potential during the construction phase, Business Insider learned in a conversation with O'Leary Ventures CEO Paul Palandjian. The accurate estimate is closer to 4,000 new construction jobs over 10 to 15 years and that isn't a guarantee."
"Data centers generally do not create large numbers of permanent, full-time jobs in local economies. Their impact on local economies is harder to measure, in part because the nascent industry is still being studied. They do come with an enormous demand for temporary skilled labor during the construction phase. Once a data center of this scale is fully built and operational, the on-site workforce shrinks by an average of 78%, researchers at the University of Southern California Marshall School found."
"Using the USC researchers' formula, a more likely estimate for permanent jobs at Wonder Valley is 1,350. "It's all supply and demand-based, so we've analyzed it for its scaled potential," Palandjian said of his job estimate. An FAQ sheet for the project, found on Utah Gov. Spencer Cox's website, said that the developer for Wonder Valley has "committed to a projected 2,000 permanent jobs in skilled trade, logistics, IT, and administrative positions to county residents.""
"Dubbed Wonder Valley, O'Leary's combined data center and power plant has the potential to reach 9 gigawatts of capacity. That would make Wonder Valley one of the world's biggest data centers if fully built out. "Look, these numbers are fluid, and they change by the day," Palandjian said, adding that the updated estimate is reflective of "our current thinking on the project.""
Wonder Valley is a combined data center and power plant project in Utah with potential capacity up to 9 gigawatts. Large data center developments often rely on temporary skilled labor during construction, while permanent on-site employment declines sharply after operations begin. Research from the University of Southern California Marshall School of Business found that once a data center is fully built and operational, the on-site workforce shrinks by an average of 78%. Using that approach, permanent jobs for Wonder Valley are estimated at about 1,350. Updated estimates also suggest construction jobs are closer to 4,000 over 10 to 15 years rather than 10,000. A project FAQ states a commitment to 2,000 permanent jobs, but reaching that level remains uncertain.
Read at www.businessinsider.com
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