Data Center Boom Sparks Job Growth in Michigan

West Michigan construction leaders are pushing back against claims that data centers only offer temporary job opportunities. They argue that the ongoing construction surge could create a steady pipeline of skilled trades workers and contribute to the state’s population growth. Union representatives emphasize the long-term career potential for workers involved in these projects, highlighting their importance in a region facing challenges in other sectors, such as electric vehicle manufacturing.

Union Leaders Advocate for Long-Term Benefits

Ryan Bennett, the business leader of the West Michigan Plumbers, Fitters and Service Trades Local Union No. 174, represents over 1,200 workers across 13 counties, including Kent, Ottawa, and Muskegon. He asserts that while critics claim data centers do not generate permanent jobs, the reality is different. “They’ve created an entire career one temporary job at a time,” Bennett stated, emphasizing the value of these projects in providing consistent work for skilled tradespeople.

The potential construction boom comes at a crucial time for Michigan, which is experiencing a downturn in electric vehicle manufacturing. Tyler Marie Theile, vice president and COO at Anderson Economic Group, believes that the influx of data center projects is essential for both the construction industry and the state’s demographic growth. “If they know they have work lined up for a couple of years, we’re in a better position to keep workers here,” Theile noted. This sentiment reflects a broader hope that the construction of data centers will attract new residents to the state, ultimately benefiting the economy.

Data center projects require a significant workforce, with some of the largest developments needing between 2,000 to 5,000 workers on-site daily. Jonathan Noble, senior director of government affairs and infrastructure at Microsoft, addressed concerns about the temporary nature of these jobs. He pointed out that in some communities, construction workers have built their careers around ongoing projects, moving from site to site within their regions. “These are well-paying jobs and they’re long-term jobs adding to the tax base,” Noble affirmed.

Local Contractors Experience Growth Opportunities

The data center boom is also benefiting local contractors, many of whom are expanding their operations beyond Michigan. Fisen Corp., a commercial HVAC company based near Grand Rapids, is set to move into a new 54,960-square-foot facility in Plainfield Township in early 2025, largely due to the demand from data center projects. President Ryan Houldsworth noted that the company is experiencing growth as it ramps up production volumes and hires additional staff to meet increasing demands.

While most of Fisen’s work is out of state, the surge in data center projects has prompted the company to expand its local workforce, which currently includes over 50 employees. Houldsworth mentioned that several other Michigan businesses are also growing in response to the increased workload, further contributing to the local economy. “There are about a half-dozen other local Michigan businesses that are also part of this growth with us,” he said.

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In addition, global HVAC manufacturer Trane Inc. has expanded its facility in Cascade Township to support the growing data center market. The company secured $9 million in private activity bonds from the state to fund a 128,000-square-foot expansion, demonstrating the significant investment being made in this sector. Houldsworth added that the efficiencies gained from working on data center projects have positively impacted other projects, allowing for better material procurement and cost management.

As the data center industry continues to grow, construction leaders remain optimistic about the economic benefits it brings, despite public concerns regarding environmental and land use issues. Bennett believes that large data center projects will be transformative for the construction industry, creating lasting career opportunities and providing a much-needed boost to the local economy.