Data center construction in the US boosts demand for skilled trades workers — CNBC
In the United States, the construction of data centers for artificial intelligence systems has increased demand for skilled trades workers, including electricians, welders, pipefitters, construction workers, and ventilation and air-conditioning specialists. CNBC reports.
According to ZipRecruiter, the number of job openings for welders and pipefitters rose by 164% year over year. Particularly strong growth was recorded in Houston and Birmingham. ZipRecruiter economist Nicole Bachaud noted that higher demand is concentrated in regions with more land available for development and less burdensome construction regulations.
Wages and vocational training
Maria Flynn, president of the nonprofit organization Jobs for the Future, said that an entry-level technician can earn between $40,000 and $60,000 per year, while experienced electricians earn more than $100,000. At the same time, ZipRecruiter recorded a 125.1% increase in the average minimum offered salary in data center job listings, to nearly $208,000. According to Bachaud, this figure is significantly affected by highly paid engineering positions.
A Cushman & Wakefield study cited by CNBC estimates that the development of 100 MW data centers creates nearly 1,300 jobs in the local economy. A significant share of these vacancies does not require a university degree: the necessary skills can be obtained at vocational education institutions.
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Southeastern Hose, a manufacturer of industrial hoses and expansion joints based in Bremen, Georgia, reported a 40% increase in its workforce over the past 18 months. The company employs 150 people, and its products are used in data center piping systems. Company representative Trey Travis said that even vocational school graduates often need additional training in specialized welding.
Opposition to data center construction
Demand for workers is rising amid criticism of new data centers from US residents. According to Gallup, 70% of Americans oppose the construction of a data center in their neighborhood. A New York Times/Siena poll showed that about two-thirds of respondents do not support such projects regardless of party affiliation.
According to Data Center Watch, this year at least 75 data center projects with a total value of about $130 billion have already been blocked or delayed. Texas Governor Greg Abbott imposed a moratorium on connecting data centers to the power grid and suspended the issuance of new environmental permits, while New York Governor Kathy Hochul introduced the first statewide ban on new data centers.
Experts surveyed by CNBC believe that active and already approved projects will support demand for skilled trades workers in the near term. However, in the longer term, the spread of moratoriums and a reduction in the number of new permits could decrease the need for such workers after existing construction projects are completed.
