Data Centers are Catalyst for Industry Diversification and Workforce Development

In today's data-driven economy, data centers have become essential infrastructure and, in some cases, more important than roads, railways, and power grids that once fueled previous waves of industrial growth.

They power everything from ChatGPT searches to mobile check deposits, writing in a Google Doc, and moving something off your Amazon wishlist to buy. But perhaps one of data centers' largest impacts is how it influences economic development. In many communities, data centers are helping to transform local economies by driving industry diversification and reshaping workforce development in the communities they call home.

"Our approach to economic development is all about balance," said Greg Kindle, President of WYEDC. "Yes, we're excited about the level of investment being attracted here, but economic development is multifaceted. By attracting a multi-million dollar data center, we are diversifying our revenue streams, utilizing existing infrastructure, and creating high-wage jobs. Data centers also have a significant spin-off effect because they utilize so many other services that often want to be close to the data centers. That spin-off can be just as impactful. It's about attracting the right mix of businesses that fit Wyandotte County and contribute to long-term economic diversification. They open the door for a wider range of industries to grow here."

"This kind of diversification is vital for the Piper School District," said Dr. Jessica Dain, Superintendent of Piper Unified School District 203. "Over 60% of our tax base is currently residential. Future commercial projects like new data centers could help ease the tax burden on homeowners and generate new revenue for the district."

With data centers and the additional benefits of workforce development and industry diversification, the district could provide top-tier services for students without seeking additional bonds and monies from Wyandotte County taxpayers. 

A New Era of Digital Infrastructure

Data centers have evolved to be more than sites that hold and store digital information. They are high-performance engines that enable modern business operations across every sector. Without data centers, people wouldn't be able to do many common daily activities, such as reading this article on your phones, scrolling through social media, or making online shopping purchases. 

Data centers support cloud-based applications like Google Drive, ensure cybersecurity for financial institutions, and enable precision manufacturing through real-time data processing. Having this resource is critical for remaining competitive in a connected, global economy.

"They're foundational. But what's really exciting is how they elevate everything around them, especially supporting industries, workforce needs, and infrastructure development. They're catalysts in every sense," explained Dr. Greg Mosier, President of Kansas City Kansas Community College (KCKCC).

Dr. Dain echoed that sentiment, noting that Piper Schools' career academies are designed to prepare students for the kinds of high tech jobs data centers help enable, whether they choose a technical or college-bound route. "We are building opportunities for students to thrive in a changing economy," she said. “Data centers reinforce that mission by expanding the kinds of jobs available right here in our community.”

The Ripple Effect: Jobs, Skills, and Supporting Industries

Unlike traditional industries, data centers do not typically create large numbers of direct jobs like other projects, like the nearby Panasonic EV Battery plant, which created 4,000 jobs. However, their economic impact is far from modest.

While their direct job creation may not be as large as Panasonic's, they do offer high-paying jobs. According to ZipRecruiter, the average salary for data center engineers is $141,916, almost three times more than the median household income of Wyandotte County. 

Instead, data centers in a community create a ripple effect across a wide range of supporting sectors that increases the likelihood of several hundred and, in some cases, thousands of new jobs. A data center drives demand for a broader, highly skilled workforce, from electrical technicians and parts manufacturers to cybersecurity professionals, network engineers, and systems administrators.

Dr. Mosier notes that this dynamic is transforming how educational institutions like KCKCC align programs with regional growth: "We're seeing increased demand in IT, cybersecurity, networking, and programming, and that's directly tied to the rise of data centers and other high-tech infrastructure."

Piper School District is already adapting to this changing landscape. "Through our partnership with KCKCC and WYEDC, we're helping students access workforce training that ties into what employers actually need," said Dr. Dain. “If a data center project moves forward in Wyandotte County, it adds to that momentum and builds more tangible opportunities for our students and families.”

Infrastructure Advantage: Why Location Matters

Wyandotte County's geographic advantage drives data center expansion and broader economic opportunity. With a strategic central location and robust infrastructure that includes interstate highways, rail networks, and river access, the region is uniquely positioned as a top virtual and data center hub.

"Connectivity isn't just about broadband," Mosier adds. “It's also about physical infrastructure, how quickly you can move goods, deliver components, and respond to demand. That's why companies are choosing to locate here. It's the intersection of digital and physical infrastructure.”

From Onshoring to Advanced Manufacturing

As more companies' onshore operations improve resilience and shorten supply chains, areas like Wyandotte County benefit from increased interest in localized tech hubs. This trend is expanding the industrial base and creating new synergies between sectors.

Take Marvin Windows, a high-tech manufacturer soon to be operating in the region. The company will integrate automation into its production lines, an approach that mirrors the skill sets required by the data center industry.

"We are in communications with the team at Marvin Windows to develop a curriculum for prospective workers so that they can have the people they need to get the job done from day one," said Dr. Mosier.

“The overlap between advanced manufacturing and high-tech services is driving a shared need for specialized training and education. It strengthens regional collaboration between industry and academia to meet the workforce needs of businesses in Wyandotte County and the surrounding region.”

The Halo Effect in Action

The story playing out in Kansas City is part of a national pattern. In Columbus, Ohio, data center growth helped attract tech titans like Google and Amazon and a $28 billion investment from Intel for cutting-edge chip production. In Phoenix, Arizona, the influx of data centers has revived the tech sector, luring AI startups and logistics giants alike.

These "halo effects" underscore how data centers anchor a broader tech ecosystem, including software development, cybersecurity, AI research, and cloud services. This clustering effect creates diverse business opportunities and builds a more resilient and future-ready local economy.

Beyond the Build: Long-Term Value

The economic impact of a data center doesn't stop once construction is complete. Yes, the buildout phase generates substantial demand for contractors, materials, and trades, but the real long-term value emerges from the ecosystem that grows around the data center itself.

Companies that rely on reliable, low-latency digital infrastructure, such as telehealth providers, fintech firms, and real-time logistics platforms, tend to cluster nearby, bringing with them high-wage jobs and consistent demand for technical talent. Educational institutions like KCKCC play a pivotal role in sustaining this momentum by training students to fill those roles.

"And for public school districts like ours," Dr. Dain added, “it means we can plan for the long-term, both financially and educationally. We'll be able to invest in programming that prepares students for high-demand careers while stabilizing our funding model by easing reliance on residential taxpayers.”

Powering the Next Generation of Industries

Bringing more data centers to Wyandotte County strengthens our digital infrastructure and positions the region as a destination for diverse industries, ready to power the next generation of ideas.

Here's how data centers help unlock new possibilities:

Healthcare

From advanced medical imaging to AI-driven diagnostics, data centers make it possible to store, process, and analyze massive datasets. They fuel telemedicine, research breakthroughs, and personalized care.

Financial Services

In a sector where speed, security, and reliability are crucial, data centers keep digital banking, mobile payments, and algorithmic trading running smoothly, ensuring compliance and performance at scale.

E-commerce

Whether it's a seamless checkout experience or personalized recommendations, data centers power the analytics and speed that define modern online shopping.

Manufacturing

As automation and 5G reshape how things are made, data centers provide the real-time processing needed for smart factories, predictive maintenance, and advanced robotics.

IT and Cloud Services

The cloud runs on data centers. As demand for remote work, storage, and digital services grows, these facilities provide the backbone for everything from startups to enterprise-scale solutions.

Building a More Resilient Future

As Dr. Mosier emphasizes, data centers' greatest value may lie in their ability to diversify and strengthen a region's economic fabric. By drawing in complementary industries, improving tech-forward education, and creating new high-skill career paths, data centers give communities the tools they need to thrive in a digital-first future.

"In a place like Wyandotte County," he says, "these developments help redefine what opportunity means.

Dr. Dain agrees. "Opportunity," she said, “means making sure every student, regardless of background, has a clear path to a sustainable, fulfilling career. Data centers help reinforce that vision by supporting industry diversification and the educational partnerships that help make it real.”

Wyandotte Economic Development Council

Let Wyandotte Economic Development Council (WYEDC) help you and your business harness "The Power of the Dotte." Our mission is to promote and strengthen Wyandotte County's economy through innovative approaches to programs, partnerships, incentives, and leadership in industrial, residential, office, and retail markets. Contact us today and follow us on LinkedIn and Facebook!