Data Centers Face Image Problem

Across Virginia, television viewers encountered a message that seemed to air nonstop during the holiday season. Against sweeping shots of solar panels, a voiceover declared that data centers are "investing billions in clean energy." The advertisement continued with images of workers in safety gear, promising "good-paying jobs" and "a better energy future."

This polished campaign, sponsored by Virginia Connects, represents a coordinated industry response to growing community opposition. With local groups mobilizing against new developments, data center operators are deploying sophisticated public relations strategies to reshape public perception.

The stakes are high. These facilities, which power everything from cloud storage to artificial intelligence, face mounting criticism over their environmental impact and economic promises. The industry's counteroffensive reveals a fundamental tension between corporate messaging and independent research.

Industry groups claim each new data center creates "dozens to hundreds" of "high-wage, high-skill jobs." However, independent researchers paint a different picture. Greg LeRoy, founder of the research organization Good Jobs First, discovered that developers pocketed well over a million dollars in state subsidies for every permanent job created in his initial study nine years ago.

According to LeRoy, that ratio remains "still very much in the ballpark" despite the rise of hyperscalers. His analysis suggests data centers generate far fewer jobs than comparable industries like manufacturing and warehousing.

Data centers are the extreme of hyper-capital intensity in manufacturing. Once they're built, the number of people monitoring them is really small.

A 2025 brief from University of Michigan researchers delivered an even blunter assessment: "Data centers do not bring high-paying tech jobs to local communities." The study challenges the narrative that these facilities serve as engines of local economic opportunity.

The economic efficiency of data center job creation appears particularly problematic in Virginia, home to the nation's highest concentration of these facilities. An analysis by Food & Water Watch, a nonprofit tracking corporate overreach, found that creating a permanent data center job in Virginia required nearly 100 times more investment than creating comparable jobs in other industries.

This extreme capital intensity reflects the automated nature of modern data centers. As LeRoy explains, contractors handle repairs when equipment breaks, and hardware gets replaced every few years, but these activities don't constitute permanent labor.

• Minimal ongoing workforce requirements
• Heavy reliance on temporary contractors
• Equipment replacement cycles measured in years
• Subsidy-to-job ratios exceeding $1 million

The Data Center Coalition, the industry's lobbying group, defends these economics. Spokesperson Jon Hukill noted that nationally, the industry "supported 4.7 million jobs and contributed $162 billion in federal, state, and local taxes in 2023."

Dozens of community groups across the country have mobilized against data center buildout, citing fears about water supplies, electric grid capacity, and local air quality. According to Data Center Watch, nearly 200 community groups are currently active in opposing developments.

This grassroots opposition has proven remarkably effective. Between April and June 2025 alone, community groups blocked or delayed 20 data center projects representing $98 billion of potential investment.

The backlash has exposed what industry insiders acknowledge as a growing image problem. Data center marketer Steve Lim recently wrote that the facilities are "too often portrayed as energy-hungry, water-intensive, and environmentally damaging." He argued this narrative "misrepresents our role in society and potentially hinders our ability to grow."

In response, some developers have turned to targeted digital advertising. Starwood Digital Ventures in Delaware used Facebook ads to argue that data center development could help keep property taxes low and bring jobs to the state.

The controversy has evolved into a political flashpoint, particularly in Virginia. In November's gubernatorial election, Abigail Spanberger won partly by promising to regulate the industry and ensure developers pay their "fair share" of electricity costs. State lawmakers considered 30 bills attempting to regulate data centers in response to concerns about rising electricity prices.

National brands have also entered the advertising fray. Meta has spent months running TV spots positioning data centers as replacements for lost industrial and farming jobs. One advertisement focused on Altoona, Iowa, depicting it as a struggling farm town revitalized by a Meta data center.

The reality differs from the marketing. Altoona is actually a suburb of 19,000 people located just 16 minutes from downtown Des Moines. The local Meta facility, a windowless warehouse complex that broke ground in 2013, supports approximately 400 operational jobs—fewer than the nearly 1,000 employees at the local casino.

Meta has spent at least $5 million airing the advertisement in Sacramento and Washington, D.C., suggesting the campaign targets policymakers rather than local residents. The company claims it is investing $600 billion in American infrastructure and jobs.

The data center industry faces a critical challenge: balancing rapid expansion with community acceptance. While industry groups emphasize their commitment to paying "full cost of service" for energy and supporting an "affordable, reliable electricity grid," independent analysis continues to question these promises.

The gap between corporate messaging and documented reality creates ongoing tension. As one researcher noted, data centers represent the "extreme of hyper-capital intensity," generating wealth but not necessarily widespread local prosperity.

With nearly 200 active community groups and successful delays of $98 billion in projects, the opposition movement shows no signs of weakening. Meanwhile, the industry continues investing millions in rebranding efforts, suggesting the battle for public opinion will intensify.

The ultimate question remains: can data centers deliver on their promises of jobs and clean energy, or will they continue facing resistance from communities bearing the costs of their operations? The answer will shape the future of digital infrastructure development across the United States.