Why Data Centers Are the New Gold Rush for Construction Workers

For years, the pathway to stability in the trades was predictable but grueling. You chased residential clients for payments, managed thin margins, and worried about the next housing crash. That dynamic has shattered. A massive pivot of capital toward artificial intelligence has turned the job sites of data centers into the most lucrative spots for construction workers in America.

It is a classic "selling shovels in a gold rush" scenario. While tech giants gamble billions on whether AI will revolutionize the economy, the men and women pouring concrete and wiring server racks are seeing immediate, tangible returns. We aren't talking about small bumps in hourly wages. We are looking at electricians and foremen earning between $100,000 and $225,000 annually.

This surge creates a complex economic ripple. For the workers, it is a life-changing windfall offering security in a notoriously volatile industry. For the broader economy, however, the insatiable appetite of data centers for skilled labor is stripping resources from other sectors, complicating an already difficult housing market.

Construction Workers Cash In on Data Centers

The pay stubs coming out of these projects tell the story better than any corporate press release. In places like Columbus, Ohio, and northern Virginia, the demand for construction workers to build data centers has reached a fever pitch.

A single data center, spanning 250,000 square feet, can create job opportunities for as many as 1,500 construction workers during its development phase, with many of these positions yielding salaries exceeding $100,000, plus overtime, and not necessitating a college degree.Once operational, around 50 full-time employees will be needed to maintain the site, and each of these roles is expected to generate an additional 3.5 jobs in the local economy.

The sheer scale of these builds drives the pay. On a typical ground-up data center, 60-70% of the workforce is electricians. A single hyperscale facility requires thousands of hands to install cooling systems, backup generators, and the intricate wiring needed to keep servers running at precise temperatures. Because downtime at a data center costs tech companies millions, they are willing to pay a premium for speed and reliability.

The Role of Union Benefits and Overtime

The financial upside isn't just about the base hourly rate; it's the structure of the compensation. Discussions among workers in International Brotherhood of Electrical Workers (IBEW) locals reveal just how aggressive the hiring packages have become.

According to Joe Dabbs, the former business manager of International Brotherhood Electrical Workers 26 which represents 12,500 electricians in the D.C., Maryland, and Virginia areas, "Forty-five to 70% of the construction of a data center is electrical."Once workers gain some experience, they can earn over $100,000 a year, and some electricians can even double or triple their earnings through overtime.

In some data centers, construction workers are seeing overtime paid at double-time rates rather than the standard time-and-a-half. Shift differentials—extra pay for working nights—can add significant hourly bumps. In areas like New Albany, Ohio, or Louisville, Kentucky, travelers (workers who move to the job site) are offered per diems and free meals on top of their wages.

This level of compensation does two things: it locks in loyalty for the duration of the project, and it draws talent from hundreds of miles away. A worker in a stagnant market can drive ten hours to Texas or Virginia, live out of a suitcase, and return home with enough cash to renovate their own house or pad a retirement fund.

The Collision Between Data Centers and the Housing Crisis

You cannot divert hundreds of thousands of skilled tradespeople to one sector without consequences elsewhere. The boom for construction workers in the data centers sector is exacerbating the skilled labor shortage in residential construction.

The United States is already short roughly 439,000 construction workers in 2025.The construction industry requires approximately 439,000 new workers in 2025 to meet current labor demand, representing a critical 32% deficit across residential contractor positions. When a general contractor for a housing development tries to hire electricians, they are now competing against a trillion-dollar tech industry that can offer double the wages and guaranteed work for years.

This isn't a direct one-to-one steal—residential framing is different from industrial electrical work—but the talent drain is real at the mechanical, electrical, and plumbing (MEP) level. If a plumber can make six figures installing cooling pipes for a server farm, they have little incentive to plumb a single-family home for a fraction of the pay.

Is the Skilled Labor Shortage Artificially High?

Some industry veterans argue that the shortage is partly a pricing issue. Residential builders operate on thinner margins. They simply cannot match the "gold rush" wages funded by the AI boom. As a result, the skilled labor shortage's impact on the residential construction industry is a multibillion-dollar annual challenge.The study estimates an aggregate economic impact of $10.806 billion per year due to longer construction times associated with the skilled labor shortage, with an additional direct cost impact of $2.663 billion annually from extended construction times.

Consequently, residential projects stall or costs skyrocket, filtering down to the homebuyer. This dynamic creates a frustrating irony: the construction workers building the infrastructure for the digital future are making enough money to buy homes, but the very industry they left behind is struggling to build enough inventory to keep prices affordable.

Geography of the Boom: Rural Towns and Data Centers

The footprint of this boom is surprisingly rural. Data centers consume massive amounts of power and land, pushing them out of dense cities and into places like Boardman, Oregon, or rural Wyoming. For construction workers, this shifts the geography of opportunity.

Ohio, for example, is one of the states with the most data centers in the U.S., with roughly 200 facilities across the state."In 2024 alone, we had 95,000 jobs supported through construction and other operations from data centers," Tony Long, Ohio Chamber of Commerce's director of energy policy, told NOTUS.Other states like Texas, Oregon and Virginia are also seeing massive data center activity.

Historically, the best paying trade jobs were in major metros—New York, San Francisco, Chicago. Now, a high-voltage electrician might find their best year of earnings in a field outside a small town in Indiana. This decentralization appeals to workers tired of city traffic and high costs of living.

However, this influx puts strain on small communities. A sudden arrival of thousands of construction workers to build data centers drives up local rent and consumes local resources like water and electricity. While it brings money into the local economy, it also accelerates the "California-ization" of rural areas, where local service workers get priced out by the transient industrial workforce.

The Urgency of AI Infrastructure

The urgency to construct data centers—crucial for cloud storage, streaming services, and high-frequency trading—has accelerated in the era of artificial intelligence.Predictions suggest that global data center capacity demand could nearly triple by 2030, significantly increasing both electricity consumption and the need for qualified electricians. The U.S. is anticipated to see an average of approximately 81,000 electrician job openings each year over the next ten years.

Tech companies have also acknowledged their dependence on skilled tradespeople for AI-related infrastructure. In a report released in May, Google stated that the existing shortage of electrical workers could hinder the nation's ability to establish the necessary infrastructure for AI, advanced manufacturing, and a transition to clean energy.In response, Google.org, the company's philanthropic division, announced a $10 million grant for the Electrical Training Alliance—a collaboration between National Electrical Association and International Brotherhood Electrical Workers—to train 100,000 new apprentices.

Stability in an Unstable Industry

Construction is notoriously cyclical. You feast in the summer and starve in the winter; you work overtime during a boom and sit at home during a recession. Data centers are offering construction workers a rare commodity: a backlog of work that stretches for years.

Tech giants like Microsoft, Google, and Amazon have collectively spent over $200 billion on capital expenditures over the past year, mainly for new data centers, with expectations to spend similar amounts in the coming year. A single campus can take years to complete, and once finished, often immediately begins an expansion phase. This allows workers to plan their lives with a degree of certainty that residential construction rarely offers.

For older workers, this stability is the endgame. It allows them to maximize their pension contributions and savings before retirement without the physical wear and tear of constantly chasing new, smaller jobs.

Will the Construction Workers' Gold Rush Last?

The sustainability of these wages depends entirely on the trajectory of the AI boom. If artificial intelligence delivers on its productivity promises, the demand for compute power will continue to compound, and data centers will keep competing for construction workers indefinitely.

The data center boom of recent years presents communities with a unique opportunity that few other industrial projects can match. These facilities bring temporary construction jobs to a town and once they're up and running, usually employ a few hundred highly skilled, highly paid workers.Market analyses indicate that as of August 2025, there were over 1,100 data centers in the United States, with nearly 400 new centers under construction.

If the AI bubble bursts, or if power constraints limit how many new facilities can actually go online, the market could cool rapidly. However, the backlog of projects suggests that even a slowdown wouldn't result in an immediate crash. The infrastructure deficit is massive; we are playing catch-up.

For now, the leverage belongs to the labor force. The narrative has shifted from "nobody wants to work" to "nobody can afford to hire," at least if you aren't backed by Big Tech capital.

Conclusion

The rise of data centers has fundamentally altered the value proposition for construction workers. It has elevated blue-collar wages to white-collar levels, provided job security in an unstable trade, and reshaped the demographics of who can afford the American Dream. Yet, as the best talent migrates to the server farms, the rest of the country faces a reckoning on how to build affordable housing without the workforce to do it. The shovel sellers are rich, but we might be running out of people to build the houses they go home to.

Frequently Asked Questions

Why are construction workers in data centers paid so much?

The high pay stems from the urgency and complexity of the projects. Tech companies lose millions for every delay, so they pay premiums to secure skilled labor. Additionally, 45 to 70% of the construction of a data center is electrical work, and the complex electrical and cooling systems require specialized skills that are in short supply.

How does the AI boom affect construction wages?

The massive investment in AI requires physical infrastructure—specifically data centers—to house servers. This sudden spike in demand creates a "gold rush" for laborers, forcing contractors to increase wages, offer double-time overtime, and provide per diems to attract enough workers to meet deadlines.

Do I need a degree to work on data center construction?

Generally, no college degree is required for the trade roles, though apprenticeships and certifications are necessary. Electricians, welders, and HVAC specialists need formal vocational training and licenses. Project management roles might require degrees, but experience often trumps education in this sector.

Is data center construction hurting the housing market?

Yes, to an extent. The high wages and steady work at data center sites draw skilled tradespeople away from residential construction. This labor drain makes it harder and more expensive to build homes, exacerbating the existing housing shortage.

Where are the most data center construction jobs located?

Northern Virginia is the historic hub with roughly 70% of global internet traffic handled in Northern Virginia's data centers. However, construction is booming in rural areas with cheap land and power. States like Ohio, Oregon, Texas, and Arizona are seeing massive activity, alongside emerging markets in Wyoming and Indiana.

What specific trade skills are in highest demand for data centers?

Electrical work is the top demand due to the immense power requirements of server farms, comprising 45-70% of data center construction. There is also significant need for HVAC/cooling specialists to manage server temperatures, as well as concrete workers and heavy equipment operators for the structural builds.

Are these data center construction jobs permanent?

The construction jobs themselves are project-based, but the projects can last for years. Once a facility is built, it employs very few people for operations. However, the current backlog of planned data centers ensures steady construction work for the foreseeable future.