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IMPLAN Blog

How IMPLAN Helps You Understand the Economic Impact of Data Centers

May 2, 2025 by Chandler West

The world runs on data. From streaming movies to managing finances and storing business information, everything relies on digital infrastructure. At the heart of this infrastructure? Data centers.

These high-tech facilities are popping up across the country, not just in big cities. Communities of all sizes are seeing increased interest from companies looking to build or expand data centers. But what does that mean for local economies?

That’s where IMPLAN comes in.

Why Data Centers Matter

Data centers do more than house servers and store data—they drive economic activity. Building one requires construction crews, materials, and equipment. Operating one creates jobs and demands energy, maintenance, and ongoing services. In short, data centers create ripple effects throughout the economy.

Understanding those ripple effects is key for decision-makers. Whether you're in local government, economic development, or public utilities, you need solid data to answer questions like:

  • How many jobs will a new data center create?
  • What kind of tax revenue will it generate?
  • How will it affect local industries and household incomes?

IMPLAN Makes the Complex Simple

IMPLAN’s economic impact modeling tools break down these questions with clear, data-driven answers. You can model the direct, indirect, and induced effects of a data center project—from construction to ongoing operations—at the national, state, or local level.

Let’s say a new data center is coming to your county. With IMPLAN, you can estimate:

  • The number of local jobs it will support (both directly and through its supply chain)
  • The amount of labor income it will generate
  • The contributions to state and local tax revenues
  • The broader economic ripple effects across industries like construction, utilities, and real estate

A Real-World Look

Data centers are energy-intensive, capital-heavy, and tend to employ fewer people than other types of developments. That might sound like a downside, but IMPLAN helps show their full economic value.

For example, even if the operational workforce is small, IMPLAN can show how the construction phase or utility spending generates economic activity in other sectors. It reveals the hidden value that might otherwise be overlooked.

Empowering Smarter Decisions

With IMPLAN, you’re not guessing. You’re making informed decisions based on trusted economic data. Whether you're evaluating the ROI of an incentive package, estimating fiscal impacts, or advocating for infrastructure investments, IMPLAN gives you the tools to clearly show how data centers support economic growth.

Want to Learn More?

Explore how IMPLAN can support your data center impact analysis today. Book a demo to get started.

Book a Demo

Topics: Economics, Impact

Why IMPLAN?

Put simply, IMPLAN is built for everyone.

Together, our software and data give you a window into your region of study — like one gigantic transaction log for the local economy. Chances are that if your project or business has a financial component, then IMPLAN can reveal some sometimes surprising detail about how your project relates to the local, state, or national economy.

What used to take economists weeks can be done in minutes. By anyone!

But you're not alone, IMPLAN's best benefits go beyond the work done in the tool:

  • Easy to learn and use
  • Outstanding customer support
  • Access to orientations, trainings, and project consultations
  • Instills confidence in your analyses

Book a Demo

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