AI Data Centres Deepen US Housing Construction Worker Shortage

In the United States, the skilled workforce needed to build homes is being drawn into the construction of new data centres.

Artificial intelligence requires vast quantities of memory chips, pushing up the prices of smartphones and PCs. AI has also increased worldwide energy demand, while the volume of water used to cool data centres is causing growing concern. On top of this, the technology is now contributing to a shortage of construction workers in the US.

To meet global demand for AI, technology giants are investing heavily in building data centres across the United States. The issue is that these new facilities are attracting the skilled workers who would usually be employed on new housing developments.

A shortage made worse by AI

Quoted by The Center Square, Ed Brady, chief executive of the Home Builders Institute at the National Association of Home Builders, a US trade organisation, said that demand for labour to build data centres is worsening an already difficult situation. According to Brady, the US skilled trades sector is short of 300,000 qualified workers. Those who are available are now moving onto projects for new data centres.

“This problem is going to worsen and become increasingly acute for the housing sector because of data centre construction, and we are not investing enough in training the future generations of skilled workers,” he also said.

Data centres offer higher pay

Construction trades are now among the professions benefiting from the artificial intelligence boom. According to a Wall Street Journal analysis cited by The Center Square, workers on data centre construction sites are receiving pay rises of 25% to 30%.

While these skilled workers remain away from housing sites, Ed Brady believes the government must introduce measures that encourage the training of new workers.

Companies are already funding training

Against this backdrop, BlackRock announced this year, for example, a programme intended to invest $100 million in training new plumbers, electricians, HVAC technicians and others. “The United States needs roughly $10 trillion in infrastructure investment by 2033 to modernise ageing systems and build new energy, digital and AI infrastructure,” Larry Fink, the asset manager’s chief executive, had explained.

Meta has also unveiled America’s Workforce Academy (AWA), “an unprecedented national programme offering accelerated access to a long-term career in a skilled trade, through an initial investment of $115 million in the first year.” The programme gives participants free training and “then guarantees jobs for all graduates.” Meta is one of the companies investing heavily in AI infrastructure in the United States.