The data center construction market is surging, with spending reaching $77.7 billion by 2025, a 190% year-over-year jump. By early 2026, 76 new projects worth $88 billion are set to begin, driven by demand for AI and cloud computing. However, this rapid growth has created a severe labor shortage, with 439,000 open positions in late 2025, particularly for specialists in MEP systems, commissioning, and power and cooling infrastructure. Salaries are soaring - up to 30% higher than typical construction jobs, with roles like AI Infrastructure Specialists earning $200,000 annually.
Key challenges include:
To succeed, firms must focus on early recruiting, retention strategies, and selecting contractors with proven efficiency in delivering complex projects. Execution capacity is now the industry’s biggest bottleneck.
Before the pandemic, data center projects were relatively modest in scale, primarily driven by the growing adoption of cloud computing and digital transformation. Back then, facilities were often just revamped server rooms, a stark contrast to today’s sprawling 1–3 million square foot campuses.
In 2019, the global data center industry employed around 2 million full-time workers. However, recruiting technical staff - especially mechanical and electrical engineers or controls specialists - was a significant hurdle. Senior MEP (mechanical, electrical, plumbing) and commissioning roles were particularly tough to fill, often leading to delays that disrupted schedules and caused project setbacks. The scarcity of candidates with the specialized expertise required for mission-critical data center construction added to the strain. These projects demanded a level of technical expertise far beyond what was needed for standard commercial construction.
The situation was further compounded by leadership attrition and staffing challenges in complex industrial sectors. As seasoned professionals retired, they took decades of institutional knowledge with them, leaving a widening skills gap. In response, major players like Google, Amazon, and Microsoft stepped in with initiatives like partnerships with community colleges, apprenticeship programs, and increased investment in internal training. Most roles required candidates to hold either a university degree or technical trade school qualifications.
These efforts highlighted the unique demands of mission-critical data center work. With its round-the-clock operations and intricate commissioning processes, this sector required a highly specialized workforce. These pre-pandemic challenges laid the groundwork for understanding the even greater labor market pressures that have emerged in recent years.
The post-pandemic era has fundamentally transformed the construction industry, introducing a new level of scale and complexity. Michael Guckes, Chief Economist at ConstructConnect, highlighted a defining trend:
"If one were to sum up the most significant trend in 2025 construction, it was the endlessly accelerating pace of data center starts."
This surge is fueled by growing demands for AI workloads, cloud services, and edge computing. Power infrastructure has become a critical factor, often dictating project timelines. To meet these energy needs, spending has surged by 70%, with projections estimating $27.8 billion in power-related starts by 2026.
Before the pandemic, the primary challenge was recruitment. Now, the focus has shifted to managing large-scale, time-sensitive projects. The industry faces a pressing need to improve "execution capacity" - essentially, the ability to deliver consistent results per labor hour in demanding environments. For perspective, while a single campus once required about 750 workers, modern facilities now demand between 4,000 and 5,000 employees. Tony Qorri from DataBank emphasized:
"The skilled labor shortage in the data center industry will intensify significantly in 2026 as leased capacity from 2024 and 2025 finally comes online."
Competition for skilled talent has reached new heights, with data center projects now contending with semiconductor manufacturing and energy infrastructure for the same specialized workforce. Senior MEP and commissioning roles, in particular, are increasingly difficult to fill, often taking months to secure the right candidates. As The Birmingham Group pointed out:
"A limited portion of applicants meet the specialized qualifications required for modern data center roles."
This talent shortage has led to salary increases and aggressive hiring practices. Project managers with data center experience now earn between $120,000 and $180,000, while AI Infrastructure Specialists command salaries ranging from $140,000 to $200,000. MEP engineers typically earn $95,000 to $140,000, and commissioning agents earn $85,000 to $125,000. To attract top talent, employers are offering higher base salaries, performance bonuses, and even benefits like on-site housing.
Geographic hiring trends have also shifted. Northern Virginia, Phoenix, and Dallas–Fort Worth remain key markets, but secondary hubs like Columbus (boosted by Google’s multibillion-dollar investments), Des Moines, and Reno are gaining traction due to their favorable power and land availability.
Data Center Job Market: Pre-Pandemic vs 2026 Comparison
The evolution of data center construction highlights how each era brought its own set of hurdles and opportunities. Understanding these shifts sheds light on today’s lucrative yet challenging market.
Pre-Pandemic: Lower Competition, Custom Workflows
Before the pandemic, data center construction faced less competition for skilled labor. Industries like semiconductor manufacturing and advanced energy infrastructure hadn’t yet intensified the demand for talent. Back then, construction costs were more predictable, averaging just over $530 per square foot in 2023–2024. However, projects were often handled on a case-by-case basis with custom workflows, an approach ill-suited for the scale and speed required in modern hyperscale builds. The talent pool was also smaller - union membership in the Washington, D.C. area, for example, stood at around 7,350 members in 2018, compared to 14,700 in 2026.
Post-Pandemic: Higher Wages, Labor Shortages
Fast forward to today, and the landscape has shifted dramatically. While wages in data center construction are now up to 30% higher than standard construction jobs, the industry grapples with a labor shortage of 439,000 workers. Over 80% of firms report difficulty finding qualified candidates. Salaries for project managers range between $120,000 and $180,000, reflecting the sector's "gold rush" appeal. However, the focus has shifted from simply increasing headcount to improving execution capacity - essentially, maximizing the work output per labor hour.
Here’s a snapshot of how the two periods compare:
| Feature | Pre-Pandemic (2019 & Earlier) | 2026 Outlook |
|---|---|---|
| Cost per Square Foot | ~$530 | $1,033 |
| Labor Competition | Moderate; tailored projects | High; competing with AI, semiconductors, energy |
| Hiring Method | Word-of-mouth, informal networks | Career centers, AI-assisted recruitment |
| Compensation Premium | Standard industry rates | 30% above typical construction |
| Primary Constraint | Traditional labor availability | Execution capacity and specialized skills |
| Management Approach | Bespoke, project-by-project | Production-driven, BIM-to-fabrication |
Modern data centers demand expertise in areas like power redundancy, advanced cooling systems, and zero‐failure commissioning - skills that weren’t as critical in traditional commercial construction. Hiring practices have also evolved. While pre-pandemic recruitment often relied on personal referrals, today’s methods include AI-driven tools and investments in specialized training programs. The trade-off is evident: higher pay and better career opportunities come with the expectation of mastering more advanced technical skills in a fiercely competitive environment.
The construction market has undergone a dramatic shift, with project costs skyrocketing from $530 per square foot to around $1,033 per square foot. Adding to the complexity is a structural labor shortage of roughly 439,000 workers.
As MSUITE aptly puts it:
In 2026, the defining limitation in data center construction is execution capacity.
This refers to the ability to optimize output per labor hour through digital workflows. Mastery in areas like zero-failure commissioning, advanced MEP systems, and BIM-to-fabrication coordination has become non-negotiable.
To navigate these challenges, developers and construction firms need to rethink their strategies. Here are three key approaches:
Specialized recruiting services, such as iRecruit.co, play a crucial role in bridging talent gaps. With expertise in mission-critical construction and access to pre-qualified candidates, these services help firms secure essential talent in a competitive market. Their focus on roles like project executives and commissioning agents directly mitigates schedule risks in hyperscale projects.
With nearly $88 billion worth of projects in the pipeline, success in 2026 will hinge on treating talent acquisition as strategically as site selection or power procurement. Execution capacity will remain the ultimate differentiator.
The demand for electricians, MEP engineers, and commissioning agents is expected to outpace supply by 2026, making these roles some of the hardest to fill. This shortage stems from a persistent lack of skilled workers and the growing need for these essential positions in the rapidly expanding data center construction sector.
In 2026, the primary challenge in data center construction revolves around "execution capacity." Inefficiencies in workflows - such as Building Information Modeling (BIM), fabrication, and field coordination - are at the heart of this issue. These problems are further exposed by persistent labor shortages, which complicate the precise installation of MEP (mechanical, electrical, and plumbing) systems. To address this, connected workflows and standardized processes are crucial. The focus has shifted from simply having enough labor to ensuring reliable output per labor hour.
To move swiftly into data center construction, prioritize building expertise in areas like electrical, mechanical, and plumbing systems. Short-term certifications can be a practical way to shift into roles such as MEP engineers, electricians, or commissioning agents. Additionally, experience in project management, overseeing vendors, and understanding modular construction techniques can give you an edge. Planning ahead and focusing on specialized training are essential to staying ahead in this rapidly expanding field.
