Experts viewing reeling projections of Utah's construction economy have high comeback hopes, thanks to a proposed $1.9 billion National Security Agency data center at Camp Williams.
Officials have been tight-lipped about details of the projected million-square-foot data center, but construction experts point to previous projects as indicators that the NSA project could have untold benefits for Utah.
"Commercial construction is down. Residential construction is way down," said Alan Rindlisbacher, marketing director for Layton Construction and a former state economic development officer. "From my experience, every significant project like this serves as an economic stimulus. It could be that it'll enhance the economy with new residents buying new homes. Or existing residents having the income to buy a home or increase their standard of living."
Utah construction jobs, which experts projected would drop by 33,000 by 2012 before the data center project was announced, fell by 40 percent this year alone. James Wood, director of the University of Utah's Bureau of Economic and Business Development, said the project would likely bring in about 4,000 construction-related jobs.
"It won't wipe out a 33,000 decline in construction jobs expected over the next few years but … that's a lot of jobs," he said. "That's a lot of wages for Utah's economy."
Retail development and stimulus from previous projects indicate that nearby cities such as Draper, Sandy and Lehi could benefit from new jobs from the proposed center.
"It'll be an economic boom in the sense of construction jobs, and that's good for the state of Utah," said Sandy economic development director Randy Sant. "People are unemployed and construction offers good jobs that will keep people employed."
The Procter & Gamble manufacturing plant under construction in Box Elder County and other projects have promoted interest in Utah from out-of-state businesses, said Derek Miller, director of the Governor's Office of Economic Development.
"The success of bringing one company begets the success of bringing the next," Miller said.
When Micron Technologies and Intel joined to form IM Flash out of Lehi, Miller said it developed more than 1,500 jobs and at least 12 vendors for supplies and other resources — all the direct result of one business.
The NSA data center, which Rindlisbacher compares to the downtown City Creek project in size and economic benefit, would be more secure and private as a federal government operation.
The new data center would sit on 120 acres at Camp Williams provided by Utah's National Guard. Wood said the first $180 million in funds would be used up-front for planning and architecture, and then another two rounds of $800 million for construction.
Utah construction jobs
2008103,000
201067,000*
2012less than 50,000*
*projected
Source: University of Utah Bureau of Economic and Business Development
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