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Data Centers Contribute $2.1 Trillion to US Economy, New PwC Study Finds
News provided byData Center Coalition
Sep 19, 2023, 9:00 AM ET
Data Center Coalition releases Data Center National Impact Study conducted by PwC
- The U.S. data center industry's direct contribution to U.S. Gross Domestic Product (GDP) increased 53 percent between 2017-2021, from $89 billion to $136 billion.
- Each job in the data center industry supports more than six jobs elsewhere in the U.S. economy.
- Labor income earned directly from the industry grew from $43 billion in 2017 to $75 billion in 2021, an increase of 74 percent – three times the growth in labor income across all U.S. industries over the same period.
- The industry's total fiscal support to federal, state, and local governments grew 50 percent between 2017-2021, from $66.2 billion to $99.6 billion.
LOUDOUN COUNTY, Va., Sept. 19, 2023 /PRNewswire/ -- A new PwC report commissioned by the Data Center Coalition (DCC) reveals the substantial impact of the U.S. data center industry on the national economy between 2017-2021, adding $2.1 trillion to the U.S. Gross Domestic Product (GDP) from direct, indirect, and induced effects over those five years. The industry has emerged as a catalyst for economic growth positively influencing several other aspects of the U.S. economy, including employment, labor income, and tax contributions to federal, state, and local governments.
Based on the study "Economic, Environmental, and Social Impacts of Data Centers in the United States," the U.S. data center industry witnessed a significant 17 percent growth in direct employment from 2017 to 2021. In comparison, overall U.S. employment increased by only two percent during the same period. The data center industry made significant tax contributions to federal, state, and local governments, totaling $403.5 billion from 2017 to 2021 due to direct, indirect, and induced impacts. Further proving the industry's growing contributions to the economy, the industry's total contribution to U.S. government revenues at the federal, state, and local levels increased by 50 percent between 2017-2021.
"There is unprecedented demand for digital services from individuals and organizations of all sizes and industries, including telehealth, video conferencing, e-commerce, government services, education, and entertainment. As a result of this demand, the data center industry is rapidly growing," said Allison Gilmore, Vice President of DCC, who leads the organization's research initiatives. "This report shows that the benefits provided by the data center industry go far beyond serving the increasing digital data demands of our daily lives. Data centers are now essential infrastructure, enabling advancements throughout our modern digital economy."
As our lives become increasingly digital, the data century industry is rising to fulfill the surge in demand while driving innovations in energy efficiency and sustainability. Leading data center companies have made commitments to purchase clean energy and invested heavily to bring new clean energy solutions onto the electrical grid, accelerating the clean energy transition and making the industry one of the largest purchasers of sustainable power in the United States. In addition, data center companies nationwide are actively investing in their local communities by supporting programs for science, technology, engineering, arts, and mathematics (STEAM) education and workforce development, volunteering with neighborhood organizations, enhancing connectivity in rural areas, and undertaking various other beneficial initiatives.
PwC conducted a thorough analysis that gauges the economic, environmental, and social impact of the U.S. data center industry from 2017-2021. This evaluation spans both the national level and three specific states – Arizona, Ohio, and Virginia – selected for their significance to the data center industry and diverse market sizes. The report further investigates the industry's environmental and social contributions through surveys among DCC members.
DCC is the membership association for the data center industry, empowering and championing the data center community through public policy advocacy, thought leadership, stakeholder outreach, and community engagement. As the voice of the data center industry, DCC advocates for a highly skilled and diverse technology workforce, greater access to clean energy, and competitive business and tax policies to support the growth and success of this essential business sector. For more information, please visit www.datacentercoalition.org or www.centerofyourdigitalworld.org.
At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 152 countries with over 327,000 people who are committed to delivering quality in assurance, advisory, and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com/US.
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SOURCE Data Center Coalition
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