More Perfect Union
More Perfect UnionJan 9
Economics

I Worked At A Google Data Center: What I Saw Will Shock You.

16 min video4 key momentsWatch original
TL;DR

Data center booms promise jobs and tax revenue but deliver temporary construction work, depleted farmland, higher electricity costs, and massive tax abatements that starve schools.

Key Insights

1

Tax breaks undermine schoolsOregon gives data centers $330 million annually in tax breaks, causing schools to lose $275 million that could have hired 3,600 teachers — yet the promised job creation doesn't materialize for locals.

2

Migrant construction workers onlyConstruction workers on data centers are mostly traveling migrants from across the country earning $3,200 weekly, not local hires — meaning temporary jobs that don't build permanent community wealth.

3

Land prices squeeze out farmingData centers drive farmland prices up so high that small businesses and farms can't compete to buy land, effectively pushing agriculture out of regions like Hillsboro, Oregon.

4

Housing crisis for essential workersAbilene, Texas saw apartments hit 100% occupancy with 20% rent increases in one year, while 1,000 residents with housing vouchers can't find landlords willing to rent to them because data center workers pay premium prices.

5

Job transfer, not creationEconomist Michael Hicks found data center jobs are mostly transitions from other construction work, not new jobs — and communities receive zero long-term tax revenue despite 10-year 80% property tax abatements.

Deep Dive

The Oregon farmland problem

Data centers have transformed Hillsboro, Oregon into what locals call data center alley, replacing hundreds of acres of farmland and agricultural operations. Farmer Aaron Nichols explains his business operates on 15 acres and employs ten people, but expansion is impossible because land speculators hold property hoping to sell it to tech companies for windfall profits. The secondary effect is even more damaging: electricians, automotive shops, and small businesses can't afford the inflated land prices either, meaning entire economic ecosystems get displaced. Electricity costs have surged too—Pacific Power and Portland General Electric customers saw 50% bill increases since 2020, driven largely by data center demand. Meanwhile, Oregon law exempts data centers from property taxes for five years through enterprise zone incentives, starving schools and local services of revenue.

Construction gold rush with hidden costs

Young electricians like 23-year-old Ty Fields from Sacramento are earning $3,200 weekly working on the Stargate substation in Abilene, Texas—money that looks transformative for a young worker but masks a temporary arrangement. These construction crews come from across America: California, Florida, Oklahoma, North Dakota. They rent Airbnbs for $1,400 weekly and leave once buildings are operational. Short-term housing revenue in Abilene shot up 40% year-over-year, thrilling real estate owners like Ken Hogan. But this temporary influx created a housing crunch: apartments hit 100% occupancy with rents jumping 20% in a year. The cruelest irony emerged when Aunisty, a home health aide essential to the community, couldn't find housing because landlords prioritize data center workers who pay premium prices. One thousand residents received housing vouchers from the city but found no landlords willing to accept them.

The job creation myth

Researcher Michael Hicks published findings showing data centers in Texas create zero net jobs and generate no tax revenue for schools, roads, or infrastructure. His key finding: the men and women working at data center sites are transitioning from residential or apartment construction, not entering new job categories. This job transfer happens temporarily—once construction finishes, those workers disappear. Taylor County Commissioner Randy Williams approved a ten-year property tax abatement allowing companies to skip taxes on 80% of property value, yet he deflected Hicks' evidence by arguing that pausing incentives would simply push data centers to competing counties. Google promised 1,700 long-term jobs at Stargate, but Shannon Wait, who worked contracted through Adecco at a Google data center in South Carolina, reveals the reality: she was never allowed to discuss wages, and when she asked about permanent employment, security walked her out and she filed unfair labor practice charges.

The reckoning

The video concludes by acknowledging that some workers genuinely benefit from high wages, but even those workers like Ty and Damien recognize the larger damage. Damien invoked dystopian literature—1984, Fahrenheit 451, Brave New World—to describe what he's witnessing. The narrator, who moved to Oregon for peace and quiet, ended by reflecting on farmland displacement and future food security for his children, not job prospects. The stated premise that data centers transform communities proved false in practice: temporary construction jobs don't build permanent wealth, tax abatements deprive schools and infrastructure, farmland disappears, rents spike for essential workers, and profits flow to distant shareholders. The video leaves a stark question unanswered: if communities gain no tax revenue, create no permanent jobs, and lose critical industries and housing affordability, what exactly is the trade-off worth?

Takeaways

  • Demand details on permanent job numbers, not construction headcount, before your city approves data center tax breaks.
  • Track how much local tax revenue your school district loses to property tax abatements in any new industrial deal.
  • Question whether temporary construction wages ($3,200/week) offset permanent housing inflation and displaced agricultural jobs.

Key moments

3:41Oregon schools lost $275 million to tax abatements

A report from Good Jobs First found Oregon schools lost $275 million to property tax abatements that could have gone to hire 3600 teachers.

5:51Electrician warns jobs won't last

I make a lot of money. It was great, but I don't know if it's going to last very long. I think after we get them up, they don't need us anymore.

9:54Housing aide pushed out by rent inflation

I've had days where I've literally cried about it when I can't get a place. As far as personal care aide people, we're also needed because we make sure your next door neighbor gets their meal or their trash gets taken out.

11:01Economist: data centers aren't creating new jobs

They're not creating jobs, they're not adding income. They're not providing tax revenue to Texans, to build schools, to maintain their road network or to improve their electric infrastructure.

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