A single data center can be 40% to 50% larger than an average Walmart Supercenter and require up to 1,500 workers during peak construction. And as companies race to build ever more powerful AI models, those facilities are getting bigger still. Meta’s Hyperion AI data center project, for example, is expected to reach four times the size of Central Park.
Tech job openings are falling. Hiring rates broadly are weak. And layoffs across the economy recently hit their highest level since 2009—although Zandi makes the distinction AI’s weighing effect on the job market “is due to weaker hiring, not layoffs.” Meanwhile, the National Bureau of Economic Research reports over 80% of firms in recent surveys say there is no impact from AI on employment or productivity over the past three years—yet those same firms forecast AI will boost productivity by 1.4% over the next three years. That disconnect between falling hiring numbers and rising productivity is precisely what worries Zandi and why he considers this a watershed Cortés moment.
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