Data Center Construction Workers Fed by Specialized Catering Company

Data center construction workers in Northern Virginia are being fed by a catering company that specializes in serving large groups of people on temporary sites. National Jobsite Catering is one such company that has adapted to meet the needs of this booming industry.

The firm's founder, Scott Kaplan, told me that his business typically serves around 1,500 meals per day at each of its dozen data center construction sites across several states. At the busiest locations, they serve twice as many workers. This catering service is a significant part of the economic activity generated by the data center boom.

The tech industry's massive investment in AI infrastructure has led to a surge in demand for large-scale catering services like National Jobsite Catering. Big Tech companies are footing the bill for these meals, which are often served at on-site break tents or other temporary facilities.

Kaplan's company used to focus on one-off events and festivals along the East Coast, but it has since shifted its focus to providing food for data center construction workers. The crews working on these projects typically stay for a year or less before moving on to another site.

Data centers are being built in several US states, with more than 1,500 already planned or under construction. The tech giants driving the AI buildout are expected to spend over $5 trillion on technology and data centers through 2030.

A growing network of businesses is catering to the needs of workers at data centers by providing everything from housing to meals. Local firms in areas surrounding these facilities are capitalizing on this trend by offering services such as food preparation and delivery.

Some companies are taking a more proactive approach by partnering with local vendors to create customized solutions for each site. This model has proven successful, with one entrepreneur reporting that his company now employs 20 full-time staff members after initially replicating a temporary kitchen setup for a hyperscaler project.

The opportunity to serve these workers is significant, with estimates suggesting that a single project can generate employment for around 15 local people in roles such as kitchen staff and delivery drivers. By partnering with established vendors, companies are able to tap into the expertise of those already familiar with the local market.

Entrepreneurs like Kaplan recognize the potential benefits of this arrangement, citing instances where they have helped boost the local economy by supporting existing businesses and creating new jobs.

Since pivoting its focus to data centers four years ago, WhereiPark has seen revenue increase tenfold.

The company's rapid growth has created a pressing need for parking solutions near construction sites, prompting entrepreneurs to seek innovative answers.

One such challenge is finding adequate space for thousands of workers before they arrive on-site, a logistical hurdle that's giving rise to a new market.

WhereiPark, which initially focused on connecting drivers with city parking spots, now finds itself at the forefront of this emerging trend by leasing lots near data centers under construction.

As data centers continue to spring up across the globe, companies are finding innovative ways to capitalize on this trend. WhereiPark's shift from parking spot connector to data center lot lessee is just one example of this adaptability.

The scale of these facilities also presents an opportunity for creative solutions to meet their needs. A typical completed facility the size of a large retail store might have only around 50 parking spaces, leading many lots to be repurposed or abandoned once construction is complete.

However, companies are beginning to recognize that data centers can create long-term economic benefits for local areas. Food services and facilities management giant Aramark has launched a new division called Nexus, which offers hotel-like amenities and services designed to attract skilled workers to these sites.

Aramark executives have projected significant revenue from this venture, estimating that three initial data center sites could generate around $150 million in annualized revenue once fully operational. The company's contracts for these services reportedly carry higher-than-average profit margins.

Microsoft's estimate suggests that for every direct construction job created at data centers, another is generated in surrounding sectors such as security and maintenance.

This "spillover" effect can vary significantly from one project to another, making it difficult to pinpoint an exact level of economic impact.

To capitalize on the potential benefits, Salute offers a range of services to its data center clients, including security, safety oversight, and technical support during construction.

The company also provides facility management after the site is operational, further expanding its role in the local economy.

The small business benefited from a catering job provided by Meta after being featured in a local news story.

Katie Stewart, owner of the business, reports that it now serves around 80 orders per day. This is an indication of the facility's impact on the local economy, even if it hasn't reached its full potential.

According to Mark Muro, a senior fellow at Brookings Metro who has studied data centers' effects on local economies, there can be significant fluctuations in activity once construction is completed. During this phase, jobs that were created during the construction process may decline significantly.

While these remaining jobs are often relatively few in number, they still represent an important contribution to small towns and rural areas, where economic opportunities can be scarce.