The AI talent war is no longer just about wooing top researchers and engineers with multimillion-dollar pay packages. A more pressing concern is the crippling shortage of skilled tradespeople – electricians, plumbers, heating and cooling technicians – who can build the massive data centers that power AI.
According to the Bureau of Labor Statistics, the US will face a severe shortage of 81,000 electricians each year between 2024 and 2034. This translates to an average annual deficit of roughly 9% more skilled electricians than existing workforce capacity. A McKinsey study predicts that by 2030, an additional 130,000 trained electricians would be required in the US alone.
The rapid construction boom for AI data centers is fueling this shortage, with some local affiliates of labor unions facing projects requiring twice to four times their current membership. The International Brotherhood of Electrical Workers notes that these single data center projects are now more demanding on workers than any other industry.
Tech giants like Google and Meta have taken steps to address the crisis by donating funds for training programs aimed at upskilling existing electricians and training new apprentices. However, the pressure is on: companies must compete for a limited pool of trades talent with other construction projects, such as residential housing, hospitals, and energy facilities.
The skilled construction worker shortage in America has been years in the making. In earlier eras, tradespeople would typically pass their skills to their children; however, more recently, they have prioritized pursuing four-year college degrees. As a result, highly skilled workers are now retiring en masse, leaving a significant gap in the labor market.
In response, trade groups like the Plumbing-Heating-Cooling Contractors Association (PHCC) and the National Electrical Contractors Association (NECA) are doing everything possible to increase the number of available workers. However, the scale and technical requirements of data center projects make it an ongoing challenge to ensure that all workers can be onboarded quickly and safely.
While there's no guarantee how long demand for tradespeople will last once the AI boom fades, one thing is certain: the pressure on construction companies to fill these positions remains fierce.
According to the Bureau of Labor Statistics, the US will face a severe shortage of 81,000 electricians each year between 2024 and 2034. This translates to an average annual deficit of roughly 9% more skilled electricians than existing workforce capacity. A McKinsey study predicts that by 2030, an additional 130,000 trained electricians would be required in the US alone.
The rapid construction boom for AI data centers is fueling this shortage, with some local affiliates of labor unions facing projects requiring twice to four times their current membership. The International Brotherhood of Electrical Workers notes that these single data center projects are now more demanding on workers than any other industry.
Tech giants like Google and Meta have taken steps to address the crisis by donating funds for training programs aimed at upskilling existing electricians and training new apprentices. However, the pressure is on: companies must compete for a limited pool of trades talent with other construction projects, such as residential housing, hospitals, and energy facilities.
The skilled construction worker shortage in America has been years in the making. In earlier eras, tradespeople would typically pass their skills to their children; however, more recently, they have prioritized pursuing four-year college degrees. As a result, highly skilled workers are now retiring en masse, leaving a significant gap in the labor market.
In response, trade groups like the Plumbing-Heating-Cooling Contractors Association (PHCC) and the National Electrical Contractors Association (NECA) are doing everything possible to increase the number of available workers. However, the scale and technical requirements of data center projects make it an ongoing challenge to ensure that all workers can be onboarded quickly and safely.
While there's no guarantee how long demand for tradespeople will last once the AI boom fades, one thing is certain: the pressure on construction companies to fill these positions remains fierce.