UK AI Data Centers May Create Fewer Jobs Than Projected, Says Think Tank
An economic think tank named Verdant has warned that the anticipated job creation from new AI data centers in the UK may be significantly overstated. According to its analysis, only around 10,400 permanent roles will likely emerge by 2035—far below industry estimates of up to 40,200 jobs. Verdant attributes this discrepancy to outdated staffing assumptions and automation trends at newer, larger facilities. Verdant's findings contrast with the techUK trade association’s estimate that data centers support around 8.5 permanent roles per megawatt. The think tank argues this figure is inflated because it reflects older, smaller sites requiring more staff. It calculates a much lower average of just 1.2 jobs per megawatt based on analysis of planning applications for upcoming UK projects. The U.K. government and techUK have defended their projections as reasonable estimates grounded in industry data and standard economic modeling techniques. They argue that Verdant's methodology is flawed, using an insufficient sample size and ignoring indirect employment benefits from the sector.
Topics: AI Data Centers Employment Projections Tech Industry