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AI data center boom fueling a construction worker crunch

A 2026 survey found 58% of construction firms say data center projects are increasing worker competition and nearly half are raising wages.

  • AI data center construction is intensifying competition for skilled labor, with a 2026 survey from the Associated General Contractors of America and the National Center for Construction Education and Research finding 58% of firms reporting increased worker rivalry.
  • Fraser Patterson, CEO of Skillit, says data centers rely on the same five trades needed for homes and offices, with these occupations accounting for 54% of labor demand on his platform.
  • Data center jobs pay a premium, with wages about 32% higher than other projects, shifting average pay from $30 to $40 per hour, costs that Patterson warns could eventually reach consumers through pricier housing.
  • Contractors note data centers aren't the sole cause of shortages, citing immigration enforcement and material costs as additional pressures, while California recently signed bills targeting the industry's significant electricity and water consumption.
  • "America is suddenly trying to build essentially an enormous amount of infrastructure all at the same time," Patterson said, noting that data center construction offers safer environments and career-building opportunities for skilled workers.
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AI data center boom fueling a construction worker crunch

AI data center projects are driving up demand and wages for skilled trades, worsening construction labor shortages and raising costs for homes and businesses.

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KSBY broke the news on Thursday, September 24, 2026.
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