Tech Giants Grapple with Labor Shortages Amid AI Data Center Boom

The race to build AI data centers worth hundreds of billions of dollars is colliding with a critical labor shortage across manufacturing, construction, and electrical trades. Skilled workers are aging out of the workforce faster than replacements emerge—a deficit projected to reach 1.9 million in manufacturing alone by 2033, according to the National Association of Manufacturers. The construction sector faces an immediate gap of 500,000 workers in 2025, exacerbated by shifting immigration policies and tariffs.

Data center projects now contend with an 8.5-month backlog, with 14% of construction firms reporting contracts in this sector. "These projects will likely exceed budgets and timelines," warns Anirban Basu, chief economist at Associated Builders and Contractors. "The precision required for AI infrastructure far surpasses standard commercial builds—and our current workforce isn't equipped to deliver at scale."