Data Centre Boom Exacerbates Construction Labor Shortages in US

The ongoing boom in data center construction activity is testing the capacity of the construction industry to deliver a large pipeline of work. The value of data center construction put-in-place will surpass traditional office spending in 2026 and is set to grow to 4.5% of total US construction activity in 2030.

• The geographic concentration of activity in key hubs such as Virginia and Texas is testing local supplier markets, which are largely regional in nature, and pushing up construction costs. Building costs in markets such as Pittsburgh, Baltimore, and Dallas have risen over 7% in the last year, compared to a national average of 3.9%

• Skilled trade labor is a key constraint for project delivery. Reports indicate workers with specialised technical expertise transitioning to data center projects can double their wages, which is pulling capacity away from other segments.

• The data center boom is driving the construction sector to be increasingly characterised by regional capacity constraints rather than a lack of project demand. Managing labour availability is increasingly becoming a key competitive advantage as important as securing financing or permits.

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