Facebook unveiled a detailed economic impact study, which it commissioned from ECONorthwest, to measure its economic impact on a regional and statewide level since it brokeground on its Prineville data center in 2010.
The highlights of the report are impressive with the total economic output associated with the construction of the data center and its 2013 operations at $573 million.
Since 2011, Facebook has awarded $965,000 to Crook County schools and qualified nonprofits through its community action grants program and local donations.
Impact from Construction Spending
Over the past five years, Facebook has invested approximately $450 million in the three buildings at the Prineville Data Center. The economic impacts generated by construction spending over five years include:
- 651 jobs in Central Oregon, 3,592 in total in Oregon.
- Total output from capital spending was $573 million statewide.
Facebook’s data center operations in Prineville (ongoing, non-construction activities) in 2013 are linked to approximately $45 million in output and 207 jobs in Central Oregon.
- For the entire State of Oregon, operations in 2013 are linked to $64.7 million in output and 266 jobs.
- Every million dollars in Facebook payroll supports another $500,000 in income elsewhere in the state, and every 10 jobs at Facebook drive another 14 jobs in other sectors of the Oregon economy, bringing the total to 3,592 jobs associated with the data center.
Local & Regional Fiscal Impact
- Facebook’s 2013 operations in Oregon and the economic activity they generated are associated with nearly $500,000 in property taxes and more than $750,000 in personal state income taxes in Oregon.
- During the construction period from 2009 to 2013, the income generated led to more than $6.5 million of state income taxes collected.
- Since 2011, Facebook has awarded $965,000 to Crook County schools and qualified nonprofits through its community action grants program and local donations.Spending associated with Facebook’s Data Center operations generate “multiplier spending effects” that benefit workers and business owners in other sectors of the local and state economies. In essence, economic multipliers provide a shorthand way to better understand the linkagesbetween a company and other sectors of the economy, i.e., the larger the economic multipliers, the greater the interdependence between a company’s operations and the rest of the economy.
- Statewide in Oregon, the jobs multiplier is 2.4—for every 10 direct jobs at Facebook, there are an additional 14 jobs supported statewide. The income multiplier in Oregon is 1.5—every million dollars in Facebook payroll supports another $500,000 in income elsewhere in the state.
- Charitable contributions by Facebook have put the power of technology towards education at all levels and brought the community closer together. Since 2011, Facebook has awarded $965,000 to Crook County schools and qualified non-profits through its community action grants programand local donations. As part of its charitable giving, Facebook donated $182,000 in 2013 to two Crook County organizations in order to further the community’s technological and economic development, including $100,000 to Crook County High School to support the school’s STEM(Science, Technology, Engineering, and Mathematics) education.
Facebook has just posted about the report on Facebook.com/prinevilledatacenter.com.