Data centre development can generate significant economic activity in emerging markets by creating construction jobs, supporting local suppliers and generating tax revenue, although the benefits can diminish once facilities become operational, according to a July 2026 IFC report.
Large data centre projects require engineering, design and construction services and can employ thousands of workers during peak construction. Their supply chains also extend to manufacturers of servers, transformers, backup generators and cooling equipment, creating opportunities for businesses beyond the facilities themselves.
Local governments can also benefit from increased tax revenue. Loudoun County in Northern Virginia, one of the world’s major data centre hubs, expects almost $900 million in annual tax revenue from data centre operations in fiscal year 2025, according to the report.
For emerging markets, the investment could therefore extend beyond computing capacity, creating demand for construction, engineering and equipment suppliers while expanding local government revenue.
But the economic gains are uneven. Most employment effects occur during the construction phase rather than through permanent operations, while demand for land can push up local real-estate prices. Data centre projects can also generate concerns over noise and environmental impacts.
The findings highlight a key challenge for governments seeking to attract AI infrastructure: the size of a data centre investment does not necessarily translate into an equivalent number of long-term jobs or broad-based local economic benefits.
For African economies competing for data centre capital, the potential payoff will depend on how effectively governments connect these projects to local suppliers, infrastructure development and the wider digital economy.
Data centre
