The "most in-demand talent" in the American AI industry: plumbers and electricians

The artificial intelligence boom is triggering an unexpected talent war. While tech giants are offering millions of dollars in salaries for top researchers and engineers, the construction of AI data centers is facing a more fundamental bottleneck: the United States is severely lacking enough electricians, plumbers, and HVAC technicians to build the physical infrastructure that supports AI operations.

The U.S. Bureau of Labor Statistics projects that between 2024 and 2034, the U.S. will face an average annual shortage of about 81,000 electricians. Research from consulting firm McKinsey has drawn a more severe conclusion: between 2023 and 2030, the U.S. needs to train an additional 130,000 electricians, 240,000 construction workers, and 150,000 construction supervisors.

This shortage is significantly constraining the expansion of the AI industry. According to a blog post by the International Brotherhood of Electrical Workers in May of this year, some local chapters "face a demand for workers for a single data center project that is two, three, or sometimes even four times their current membership." Chris Madello, an international representative for the union representing plumbers and pipefitters, stated that the demand for workers for data center projects currently exceeds that of any other single industry.

Tech companies have begun to take action to address this crisis. Google announced last spring that it would donate to the Electrical Training Alliance, aiming to help 100,000 existing electricians upgrade their skills and train 30,000 new apprentices by 2030.

Long-standing Skilled Labor Shortage

Anirban Basu, chief economist of the Associated Builders and Contractors, stated that the shortage of skilled construction workers in the U.S. has persisted for many years. In earlier times, skilled workers would pass their skills on to their children, but in recent years they have been more inclined to encourage the next generation to pursue four-year college degrees. The result is that construction workers with the highest skills are now reaching retirement age.

"For years, the industry has been warning of the impending silver tsunami, where these highly skilled baby boomers will retire in large numbers," Basu said. "That time has come, and the industry has been grappling with a widespread shortage of skilled workers."

Data center construction must compete for skilled workers with other construction projects such as residential buildings, hospitals, factories, and energy facilities. In all these areas, the supply of workers has become tight. The Bureau of Labor Statistics projects that the employment of electricians will grow by 9% over the next decade, "much faster than the average for all occupations."

Training Speed Struggles to Keep Up with Demand

Dan Quinonez, an executive at the Plumbing-Heating-Cooling Contractors Association (PHCC), stated that the plumbing industry is "doing everything possible" to increase the number of available workers, but this issue requires long-term solutions and cannot be resolved overnight.

Worker demand also varies by industry and region. Madello noted that in Northern Virginia, despite a surge in data center construction, there is no shortage of applicants to become plumbers or pipefitters. "The number of applicants always far exceeds the number of people we actually accept into the apprenticeship program," he explained. The number of apprentices admitted mainly depends on how many union members are expected to retire in the coming years.

However, one issue is the inability to train workers quickly enough for data center projects. Quinonez stated that the work itself is not much different from other plumbing jobs, but data centers are built according to strict timelines, leaving almost no room for delays or errors Apprentices typically follow experienced plumbers on active construction sites to learn on the job. However, companies are less willing to take risks on data center projects, as even small mistakes can slow down project progress.

“For contractors, making mistakes can be costly,” Quinonez explains. Apprentices and trainees may need to undergo “more rigorous training” before being assigned to help build data centers.

High Salaries Intensify Talent Mobility

Charles White, who oversees regulatory affairs at PHCC, states that data center projects provide ample incentives for plumbers, pipefitters, and HVAC technicians. These projects typically offer higher pay than other types of construction, partly because their tight schedules make it more likely for workers to work overtime.

High demand encourages workers to switch jobs, as they are often attracted by the longer hours and higher pay offered by data center developers. "I often hear these stories," Quinonez says, "You’ll get paid quickly because you’re working for Amazon, Google, or large tech companies. So competition is everywhere."

“The competition is indeed fierce,” Quinonez adds, “Part of the problem is that there simply aren’t enough plumbers and HVAC technicians.”

In the construction industry, some pressure is alleviated through a pool of mobile skilled workers who are ready to "show up to build something in any remote location." David Long, CEO of the National Electrical Contractors Association (NECA), states that the organization has done well in training new electricians to keep pace with retirements, but the scale and technical requirements of data center projects make it a "challenge" to ensure all workers are quickly and safely on the job.

It remains unclear how long the demand for skilled workers will last after the AI boom eventually begins to wane. After construction is completed, data centers typically retain a small number of around-the-clock staff on-site, along with a network of external contractors to handle maintenance across multiple facilities