AI data centers are fueling a growing shortage of skilled construction workers, driving up costs and potentially slowing construction of homes and businesses.
In a 2026 survey from the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER), 58% of construction firms say data center projects are increasing competition for workers.
Another 36% say data centers are making job openings harder to fill, and nearly half say they are feeling pressure to raise wages.
Fraser Patterson, founder and CEO of Skillit, a platform that connects skilled tradespeople with contractors, says data centers are competing for many of the same workers needed to build homes, offices and other major projects.
"America is suddenly trying to build essentially an enormous amount of infrastructure all at the same time," Patterson said.
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Patterson says five trades account for 54% of the labor demand on his platform. They are the same five trades most needed for data centers: carpenters, electricians, heavy equipment operators, concrete workers, and general labor.
Skillit research shows data center jobs pay a premium, with wages about 32% higher than other construction projects.
"You're talking about something like $30 an hour becoming maybe $40 an hour on average," Patterson said.
Patterson says those higher labor costs could eventually reach consumers through more expensive homes and other building projects.
"Those attracting all these electricians and the plumbers and trades, the construction costs are going to rise. It's very hard to pull them away from these lucrative projects," Patterson said.
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For workers who have those skills, Patterson sees an upside. Beyond higher salaries, he says most data center construction offers safer working environments and workforce development opportunities.
"It's a real career-building opportunity as well," Patterson said.
Data centers have already faced criticism for consuming massive amounts of electricity and water. California's governor recently signed bills targeting the fast-growing industry.
Contractors say data centers aren't the only reason for labor shortages — some also point to immigration enforcement and higher material costs as additional pressures on construction projects.
