Data centers are being built more and more, but job opportunities for American college graduates are decreasing.
On September 1, a research report released by the Federal Reserve Bank of Dallas showed that since the launch of ChatGPT in 2022, the number of jobs in Texas with high AI exposure has continued to decline, with recent college graduates bearing the brunt, and their unemployment rate rising to "exceptionally high" during this period.
In the first quarter of 2025, the number of jobs with high AI exposure decreased by approximately 8% compared to those with low AI exposure.
Researchers Samuel Dodini and Tucker Smith wrote in their report: "These dynamics suggest that recent college graduates—whose unemployment rate has risen to unusually high levels during the rapid adoption of generative AI—are the group where the impact of generative AI on employment and income is most evident."
A major data center province, a haven for white-collar jobs
Texas has the largest capacity of data centers under construction in the United States. However, this massive infrastructure investment has not led to an increase in white-collar jobs; in fact, it has created a contrasting situation.
A study by the Dallas Federal Reserve indicates that the occupations with the highest AI exposure in Texas are concentrated in software development, web design, and computer-intensive positions, while managers, clerical workers, editors, and other white-collar jobs also have high exposure levels.
These are precisely the areas where university graduates traditionally find employment.
The construction of data centers has led to an expansion of blue-collar jobs such as electrical engineers and construction workers, rather than software engineers or data analysts. AI tools themselves are replacing some of the latter's jobs.
Public opinion backlash, politicians shift their stance
The data center construction boom has sparked growing public opposition in Texas.
A survey by the Annenberg Center for Public Policy at the University of Pennsylvania shows that in July 2025, 61% of American adults will oppose the construction of data centers in their area, an increase of 12 percentage points from the survey results from February to March of this year.
Facing a strong backlash from voters, Texas Republican Governor Greg Abbott has been forced to shift from a supporter of the data center industry to an open critic – with the midterm elections scheduled for November.
Trump, however, took a completely opposite stance. He posted on Truth Social on Monday: “The only reason communities across America oppose data centers is that they want to be backward and poor. If they want to be successful and wealthy, if they want lower taxes and jobs everywhere, let data reign supreme.”
Youth unemployment: a global concern
The situation in Texas is not an isolated case, but rather a microcosm of a global trend.
A report released by the International Labour Organization in August this year pointed out that the global youth unemployment rate is rising, particularly in high-income economies. The youth unemployment rate in North America has risen from 8.3% in 2023 to 9.8% in 2025; the youth unemployment rate in Northern Europe, Southern Europe, and Western Europe is expected to remain high at 15% in 2025.
Sukti Dasgupta, Director of the Employment, Skills and Sustainable Enterprise Department at the International Labour Organization, said: “The direct impact of AI on employment remains unclear, but we cannot be complacent or underestimate the risks. Technological advancements, including AI, must serve young people, not be their enemy.”
The International Labour Organization report also points out that jobs that traditionally provide entry opportunities for young people—such as clerical and administrative positions, manufacturing-related jobs, and some technical occupations—are shrinking.
Risk warning and disclaimerInvesting involves risk; please exercise caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Any investment decisions made based on this information are at your own risk.