The data center buildout is driving blue collar job growth — and everything else is falling by the wayside
Your favorite chatbot isn't just answering questions; it's also led to skyrocketing construction spending.
U.S. data center construction spending is on track to become the largest capital expenditure project in American history, eclipsing railroads and highways, according to a Brookings Institution analysis. The AI buildout is driving a construction boom, with overall construction spending falling year-over-year, while data center spending is skyrocketing. The American Institute of Architects projects data center construction spending to account for about 8% of nonresidential building spending by 2027.
Blue-collar employment in data centers is booming, with the number of nonresidential specialty trade contractors growing by 86,000 in the past year. The American Institute of Architects attributes this growth to increasing data center construction activity. Zach Fritz, an economist at Associated Builders and Contractors, said a large portion of construction labor demand is currently being driven by data center construction.
However, the sustainability of this jobs boom could be precarious. Construction spending overall has fallen 3.8% year-over-year, and data centers are seen as a structural growth driver for spending. Guy Berger, a senior fellow at the Burning Glass Institute, warns that if the data center boom cycle ends shorter than anticipated, trained workers may find their skills no longer needed.
Job postings on Indeed for data center-related roles have surged by almost 130% from about two years ago, while overall job postings are down compared to the same period. About half of the data center demand this year came from IT infrastructure, operations, and support occupational groups, as well as installation and maintenance groups.
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