The construction of data centers to power artificial intelligence in the US could create half a million jobs in the next five years, according to a new report from former GOP House Speaker Kevin McCarthy’s tech policy organization.
The ALFA Institute commissioned a study that estimates a $100 billion investment in data center construction over the next half-decade would directly and indirectly create 500,000 jobs, increase GDP by $140 billion, and increase tax revenue by $800 million.
Most of the jobs would be in manufacturing, but they would also span other industries like transportation and real estate, according to the report from the consulting firm Capital Policy Analytics.
The report offers an optimistic assessment of AI’s economic impact, as growing numbers of policymakers worry about the mass layoffs that the technology could spur.
Former GOP Rep. Garret Graves, who served on the House Transportation Committee while in Congress, said the report’s economic conclusions are important for policymakers as they consider potential regulatory and permitting reform, which he argued are “desperately needed for America to win the AI race against China.”