AI data centers won't create as many UK jobs as the tech sector projects, think tank warns (www.cnbc.com)

A new report from economic think tank Verdant reveals that Britain's burgeoning AI data center sector may generate significantly fewer permanent jobs than previously projected by industry estimates. While techUK initially forecasted the creation of about 40,200 roles by 2035, Verdant concludes that only around 10,000 permanent jobs will arise from the construction of data centers. This discrepancy arises from Verdant's assessment that modern, larger data centers are increasingly automated and require fewer staff, resulting in a revised estimate of operational jobs per megawatt—down from techUK's assumption of 8.5 to just 1.2. This analysis is particularly significant as the UK government prioritizes AI infrastructure development amidst substantial investments by major tech companies like Alphabet and Microsoft, totaling nearly $700 billion this year. Despite the potential for job creation in specialized fields such as robotic technician positions—which saw a 107% increase in demand—Critics argue that techUK's broader job figures inadequately reflect the economic landscape, as they mix direct data center employment with ancillary roles in the supply chain. The debate highlights the need for accurate predictive models in shaping future workforce policies and aligning educational pathways in the AI sector.