Discussion Paper

Data Center Construction: How Are Fifth District Businesses Involved?

Abstract: The Fifth District is home to more than 20 percent of the nation's data centers, and development continues to accelerate, reflecting the industry's expanding physical presence across the region. As data centers have become an increasingly large part of the local business ecosystem, it is important to understand how they are affecting regional businesses. To better understand the impact of data centers on local businesses, we asked firms in our October business surveys a series of questions about their direct or indirect involvement in data center construction. While most firms remain uninvolved in data center construction, those that are report faster growth in input costs, prices charged, and wages, and are more likely to increase employment over the next six months.

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2026-11-03