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The exponential growth of AI-driven data centers in the U.S. is colliding with a severe shortage of skilled labor, according to BisNow.
Developers are racing to complete projects while managing rising costs, compressed timelines, and an unprecedented demand for electricians.
Electrician Shortage Threatens Project Timelines
The U.S. faces an annual shortage of over 81,000 electricians through 2030, and industry projections suggest the country may need up to 500,000 new electricians over the next decade. Electricians are critical for both installation and power management, including temporary generation and microgrid setups to keep servers running.
Wages have soared in response, with union electricians earning up to $130 an hour before overtime, compared to an average of $30 per hour. In some high-demand regions, labor costs have risen as much as 25% per quarter.
Extreme Measures to Secure Labor
Developers are using creative strategies to staff projects. Workers are recruited nationally, flown to sites on private jets, and housed in temporary worker villages with dorms, mess halls, and full amenities.
In more remote areas, such as the Texas Panhandle and the Dakotas, they have built “man camps” — temporary villages with dorms, dining, and amenities — to house and attract workers on-site.
Large projects now operate 24/7, with thousands of workers on-site — one Mississippi campus employs roughly 3,000 workers.
Costs and Complexity Surge
Monthly spending on new construction hit $40B this summer. Supply chains are struggling, with some essential electrical equipment taking up to a year to arrive. Only 17% of executives say the supply chain is ready for the surge in demand.
Design changes and power shortages are top challenges, and bids for projects have risen 6%–15%, with 21% of executives reporting increases over 15%.
Unprecedented Timelines and Scale
Data center campuses that once staggered construction now build multiple facilities simultaneously, often across multiple shifts. Each server rack can cost up to $5M, requiring tight coordination and security.
The acceleration reflects the high stakes: the sooner a facility goes live, the greater the return for investors.
Industry leaders expect this breakneck pace to continue for five to seven years, with some operators planning to double their portfolios over the next four years.
