| There is huge amounts of construction costs on these things and electrical work as well. The general rule is 50% or more of construction in NYC goes toward labor, so that drives up wages for local talent. Obviously any given project is temporary but it seems like there will be a multi year build out so lots of projects. There is then the secondary effect of skilled labor like machining and manufacturing parts for these centers locally when it makes sense, I.e. turbines or rack assembly. Data centers pay high property taxes which has been huge in places like Virginia. And then it’s not just data centers there is kinda a larger war on construction in the North East in general. So NYC blocks tons of common sense urban infill, the state blocks common sense infrastructure projects, and it’s death by a thousand cuts and people just leave the area or leave the trades because it’s not worth it. Genuinely huge projects like Microns $100B fab in NY get delayed and moved to the center of the country [1], which would’ve been huge for the local economy in terms of spending and opportunities. [1] https://www.constructiondive.com/news/micron-delay-construct... |
I can't erect, say, an Amazon SWE office in the middle of bumfuck nowhere. How will I get:
- Talent for my office? - Food, shelter, and creature conveniences for my workers? - Culture for my workers? - Entertainment and nightlife for my workers? - and on and on
Turns out DCs need like... none of that. Which is why we just put them anywhere, it seems, and we don't build them in downtown Seattle or Manhattan. But we do certainly put offices in Seattle and Manhattan.
Also, while the DC itself takes some local capital to build, both labor and materials, everything inside the DC is imported. We don't use skilled workers to build GPUs for the DC right, we just buy nvidia.