Texas expands data centers amid rising graduate unemployment

A new study shows Texas university graduates face unusually high unemployment amid AI growth. The Dallas Federal Reserve Bank reports AI-affected job openings fell 8% in Q1 2025, disproportionately impacting graduates. Governor Greg Abbott paused new data center projects due to public opposition, despite initial support. Demand for grid access surged from 48 gigawatts in 2023 to over 474 gigawatts, making Texas a hub for AI and cloud infrastructure. A Stanford study found declining employment for young knowledge workers, while industrial and retail sectors saw increases. A report author noted AI reshapes labor demand, affecting 22- to 25-year-olds most. Gallup’s 2025 survey found 72% of respondents believed it was a poor time to find a job. Concerns over AI’s impact on employment persist, with critics arguing data centers may not significantly benefit local economies. Uncertainty around job displacement has eroded worker confidence, with some fearing AI is being used as a pretext for layoffs. Despite these challenges, Texas remains a key player in the AI industry, balancing economic growth with rising concerns over its social and environmental impacts.