The data center construction industry faced a challenging year in 2025, fueled by skyrocketing demand for AI infrastructure. Monthly spending on new projects hit $40 billion, while workforce shortages caused delays averaging 8.5 months. Here's what you need to know:
Labor shortages are delaying projects and pushing costs higher, making recruitment and retention critical for success in this booming sector.
Data Center Construction Workforce Crisis 2025: Key Statistics and Salary Trends
The data center construction industry is grappling with a workforce crisis that's severely slowing down project timelines. By late 2025, 92% of construction firms reported struggles in hiring workers, and 45% acknowledged labor shortages as a direct cause of project delays. On average, data center projects now face backlogs of 8.5 months, with some delays stretching as long as 11 months. Meanwhile, unemployment in this sector hit a record low of 3.2% in August 2025. This tight labor market has created a critical shortage of skilled talent.
The financial consequences are just as concerning. Half of industry leaders noted that bids for data center projects have risen by 6% to 15% over the past year, and 21% of executives reported even sharper increases of 15% or more. In regions with the highest demand, salaries for electricians have surged by as much as 25% per quarter. These rising costs are forcing developers to rethink project scopes and timelines to manage budgets.
The labor shortage has highlighted roles that are essential for keeping projects on track. Among these, electricians are the biggest bottleneck. Ben Burgett, Vice President of Data Centers at Gray Construction, put it plainly:
"It's all about electricians, on every project. That's the longest pole of a tent on every project".
The Bureau of Labor Statistics estimates a national shortfall of 81,000 electricians annually through 2030. Across the broader construction industry, the deficit is even larger, with approximately 439,000 workers needed.
Other specialized roles are also in short supply. 82% of construction firms report difficulty filling hourly craft positions, while 80% struggle to hire for salaried roles. Mechanical, electrical, and plumbing (MEP) engineers, who design and manage complex systems for high-density cooling and power distribution, command salaries ranging from $95,000 to $140,000. Similarly, commissioning agents - responsible for ensuring flawless performance in AI-driven infrastructure - earn between $85,000 and $125,000. Project managers with experience in mission-critical projects are in especially high demand, with salaries reaching $120,000 to $180,000. Maria Davidson, CEO of Kojo, remarked:
"Talented project managers and foremen are the rock stars of the industry. There's huge competition, and we're seeing a lot of companies poach each other's teams".
Adding to the challenge is the "silver tsunami" of retirements. Nearly 45% of data center professionals have over 20 years of experience. As Kyle Van Slyke, COO of Musselman & Hall Contractors, explained:
"The senior leadership that continues to retire and not be replenished is really hurting our market".
This wave of retirements is creating a leadership vacuum that's difficult to fill quickly. To address these gaps, platforms like iRecruit.co are helping developers connect with pre-qualified candidates specifically vetted for mission-critical roles, speeding up the hiring process during this labor crunch.
Labor shortages are not just a staffing issue - they're causing major disruptions to project schedules. Missing even one trade can lead to what industry experts call a "waterfall of delays", where subsequent stages like equipment testing and commissioning are pushed back indefinitely. In 2025, 52% of data center construction sites reported disruptions due to staffing shortages, up from 43% the previous year.
To stay on schedule, developers are resorting to extreme measures. Instead of building structures sequentially, they are now constructing entire campuses simultaneously, which significantly increases coordination challenges and risks worker burnout. For example, in November 2025, Gray Construction managed a 1-gigawatt data center project across seven campuses, including a site in Mississippi requiring about 3,000 workers on-site at the same time. Ben Burgett described the coordination required as "unprecedented" due to the pressure to complete all structures simultaneously.
This high-pressure environment is taking a toll on workers. Many are logging 50–60 hours a week, with some taking on additional overtime at other sites during weekends. This leads to fatigue and retention issues. To combat burnout, general contractors have introduced wellness programs. Despite these efforts, 60% of contractors reported that projects were delayed or canceled in late 2025 or early 2026 due to labor or funding uncertainties. Anirban Basu, Chief Economist at Associated Builders and Contractors, summed it up:
"I think these projects are likely to go over budget and miss their deadlines... Now you add this layer of complexity, this need for precision... Do we have the workforce for that? Not in abundance, that's for sure".
The landscape of data center construction is shifting rapidly, with technical demands that go far beyond traditional building trades. By 2025, the industry is set to deliver over 10 GW of new capacity, all while grappling with a shortage of approximately 400,000 skilled trade workers, particularly electricians and HVAC technicians. This evolution highlights the growing need for specialized technical expertise in roles that were once more general.
Power management is set to be a cornerstone of data center operations in 2025. As 30% of upcoming U.S. data center sites plan to incorporate on-site power generation from the outset, professionals will need to excel in areas like grid interfacing, utility negotiations, and advanced technologies such as Battery Energy Storage Systems (BESS), microgrids, and fuel cells. Energi People summed up the challenge:
"The bottleneck isn't money or land – it's power. Engineers who can solve that challenge are already in short supply".
Cooling systems are another critical area, especially as AI workloads push global data center electricity demand to an estimated 1,065 TWh by 2030. Expertise in liquid cooling, high-density containment, energy optimization, and innovative solutions like heat reuse and adiabatic cooling for hot climates will be in high demand.
Beyond power and cooling, roles now require deep knowledge of Building Management Systems (BMS), Electrical Power Monitoring Systems (EPMS), and reliability engineering. Commissioning agents are tasked with ensuring seamless performance through Integrated System Testing (IST) and preparing facilities for black-start scenarios in Tier III/IV data centers. Regulatory compliance is another critical area, requiring adherence to NEC/NFPA codes, arc-flash safety measures, and standards from bodies like Uptime, ASHRAE, and TIA. Certifications such as Uptime Accredited Tier Designer, LEED/AP, and vendor-specific training from companies like Schneider, Siemens, or Cisco are becoming increasingly valuable.
While technical expertise is a must, the modern data center workforce also needs to excel in leadership and collaboration.
Today’s data center projects demand "design-build leaders" who can coordinate across Mechanical, Electrical, and Plumbing (MEP) systems, AI infrastructure, and architectural elements. Brent Arnholter, an AEC expert at Actalent, described the challenge:
"These projects are MEP-heavy and require seamless integration of AI systems, power and cooling. That means design and construction teams have to collaborate in real time".
Interestingly, nearly 60% of the skills required in modern data centers are non-technical, focusing on problem-solving, adaptability, and communication. David Timis from the World Economic Forum explained the shift:
"The traditional image of a data centre professional as an expert in server racks and network cables is outdated. While technical proficiency remains foundational, the modern data centre demands a much more diverse skillset".
Project managers, in particular, are expected to handle "multi-site program controls", which include governance, cost management, and coordinating complex schedules across geographically dispersed projects. As data centers expand into remote areas like Indiana and Louisiana, professionals must be prepared to travel and manage operations in isolated locations. Additionally, strong skills in managing vendor ecosystems and negotiating with utility providers are essential, as grid access continues to be a significant hurdle.
For companies aiming to meet these evolving demands, recruiting professionals with this rare combination of technical and cross-functional skills will be critical.
The ongoing talent shortages in the industry are a pressing challenge. With a need for 499,000 new workers by 2026 and 41% of the current workforce set to retire by 2031, the sector is turning to focused training and recruitment strategies to address these gaps.
Colleges and universities are stepping up with programs specifically designed to meet the demands of data center construction. For instance, in late 2025, the College of DuPage in Illinois introduced a facility maintenance degree and a data technician certificate. Under the leadership of President Dr. Muddassir Siddiqi, the curriculum combines HVAC, IT, and electromechanical technology, giving students hands-on experience with high-density server clusters and precision cooling systems. Dr. Siddiqi highlighted the importance of collaboration between education and industry:
"The industry is willing to invest in workforce development, but it cannot build the pipeline alone. To scale talent at the pace required, employers need educational partners who can deliver coordinated, job-ready training".
Tech giants are also playing a role. Programs like the AWS Workforce Accelerator and Microsoft's Datacenter Academy are fast-tracking talent development through intensive, job-focused training. These initiatives address a critical need, as nearly 60% of the skills required in modern data centers are non-technical. By offering short-term, targeted training, these programs complement traditional multi-year degrees, helping to quickly fill skill gaps.
Alongside training efforts, efficient recruitment has become essential. Filling senior MEP and commissioning roles can take months, so companies are adopting proactive strategies. One approach is early teaming, where firms involve electrical contractors and design partners during the project's conceptual phase instead of waiting for final designs. Kurt Wallner, Project Executive at DPR Construction, underscored the importance of this strategy:
"Getting your team together is critical. And not just your design partners, not just your general contractor, but really deep-teaming, going to get your electrical contractor... because there's only so many journeymen".
To streamline hiring, platforms like iRecruit.co are providing pre-screened candidates with expertise in mission-critical roles, significantly reducing the time needed to fill positions in project management, MEP systems, and commissioning. This is especially important as staffing shortages have disrupted operations at 52% of data center construction sites, up from 43% the previous year. Some firms are also expanding their reach by hiring senior project managers remotely. This approach taps into a national talent pool, bypassing local shortages and proving particularly effective for leadership positions.
The surge in data center construction is putting immense strain on hiring budgets. By June 2025, U.S. construction starts hit $12.9 billion - a staggering 48% jump from the previous year. This rapid growth has created significant pressure on both project budgets and the labor market.
Wages for skilled trades have soared, climbing 25–30% above previous levels. Chad Buck, President of Sundt Construction, highlighted the challenge:
"There aren't enough people to build the magnitude of work out there right now. Every general contractor in the country is trying to pull from the same pool".
To stay competitive, companies are expanding recruitment budgets to include perks like climate-controlled break tents and free daily lunches. But these efforts come amid other financial hurdles. High interest rates, upfront utility deposits, and delays in equipment delivery are tightening budgets even further.
The economic strain is unevenly distributed. Smaller contractors are feeling the pinch, as noted by Anirban Basu, Chief Economist of Associated Builders and Contractors:
"Backlog fell sharply for smaller contractors during 2025. That decline was largely due to the fact that nonresidential construction momentum is confined to the data center segment".
Meanwhile, larger contractors - those with revenues exceeding $100 million - are thriving. Their backlogs have reached record highs, averaging nearly 11 months compared to just 8 months in other sectors. This imbalance leaves smaller firms struggling to compete for talent.
Adding to these economic challenges are regulatory and immigration shifts that further limit the available workforce.
Regulatory and immigration policies are reshaping the construction workforce, compounding the challenges posed by economic pressures. Undocumented workers currently make up about 13–14% of the U.S. construction labor force. Proposed mass deportation measures could remove over 30% of workers in critical trades like painting, roofing, and plastering. George Carrillo, CEO of the Hispanic Construction Council, expressed concern:
"Retirements, restrictive immigration policies, and deportation threats are shrinking the labor pool, creating the risk that data centers become stranded assets, billion-dollar buildings that cannot go online".
The domestic labor pool is nearly tapped out, and the industry needs an additional 500,000 workers in 2025 alone. By 2030, the shortage is expected to balloon to 3.2 million workers. Immigration restrictions are further slowing the replenishment of an aging workforce, especially for physically demanding roles that native-born workers often avoid.
Regional regulations are also influencing where projects are located. States like Missouri, Indiana, and Pennsylvania are offering tax incentives to attract development to smaller markets. For example, Missouri's incentives played a key role in Google's decision to build a new data center in Kansas City in early 2026. Similarly, Alberta, Canada, is drawing attention with its deregulated power market and the absence of a carbon tax on data center electricity use.
Permitting delays add another layer of difficulty. Lengthy approvals for high-voltage transmission lines and complex rezoning requirements are slowing project timelines and complicating workforce planning. In Northern Virginia, power shortages are causing hiring freezes, even as other regions see rapid expansion. These financial and regulatory challenges are creating a tough environment for efficient hiring. Summing up the situation, Anirban Basu remarked:
"I think these projects are likely to go over budget and miss their deadlines... Now you add this layer of complexity, this need for precision... Do we have the workforce for that? Not in abundance, that's for sure".
The data center construction industry is grappling with a staffing crisis that's hard to ignore. By 2025, global staffing needs are expected to hit nearly 2.3 million full-time equivalents, yet almost two-thirds of operators are already struggling to find or retain qualified professionals. With the growing demand for AI infrastructure and ongoing cost pressures, traditional hiring methods just aren't cutting it anymore.
To tackle this, companies need to rethink their recruitment and training strategies. Removing unnecessary barriers to entry, building robust internal training programs, and forming partnerships with community colleges can help create a steady talent pipeline. Additionally, addressing the "silver tsunami" - the wave of retiring senior professionals - through succession planning and mentorship programs is key to preserving expertise and ensuring continuity.
For specialized roles like MEP engineers, commissioning agents, and project managers - where demand far outweighs supply - turning to recruitment platforms like iRecruit.co can make a big difference. These partnerships can help fill critical positions faster, keeping projects on track and minimizing delays.
The rising costs of salaries and challenges with employee retention highlight the need for companies to offer competitive pay, clear career growth opportunities, and improved working conditions. As Kurt Wallner from DPR Construction aptly put it:
"Really, what we're seeing, it's an arms race for people, material, equipment."
The urgency for change is clear, and the industry must act swiftly to adapt to these evolving demands.
The data center construction industry is grappling with a serious shortage of skilled workers, leaving many positions vacant for extended periods. To tackle this challenge, companies are blending immediate fixes with strategies aimed at building a more sustainable workforce.
In the short term, businesses are offering higher salaries, signing bonuses, and perks like on-site housing or travel allowances to attract new hires. Many are also turning to temporary or contract workers as a quick solution to fill pressing gaps. Partnering with specialized recruitment services, such as iRecruit, which focuses on pre-screened talent for data center projects, has also helped streamline hiring and minimize delays.
For the long haul, companies are focusing on apprenticeship programs and partnerships with trade schools to train the next generation of workers. Some are even adopting modular construction techniques to reduce the need for extensive on-site labor. Offering clear career advancement paths, continuous training opportunities, and competitive benefits packages has also proven effective in retaining skilled employees and creating a steady talent pipeline for the future.
The year 2025 is seeing a sharp rise in construction costs, significantly affecting how data centers are planned and built. While expenses are still climbing, the rate of increase has eased compared to previous years. To adapt, many developers are rethinking their strategies, with one notable trend being the purchase of larger land parcels. In 2024, the average size of these parcels reached 224 acres, allowing developers to create multi-phase campuses. This approach helps spread fixed costs across larger capacities, offering a more efficient use of resources.
At the same time, power availability in established markets is becoming a major hurdle. This is pushing developers to look at emerging locations, where land might be more affordable but building the necessary electrical infrastructure adds complexity - and extra costs. These dynamics are also driving up the need for specialized professionals, such as project managers, cost estimators, and commissioning experts, who can help keep projects on budget and on schedule.
To tackle these challenges, many firms are partnering with talent specialists like iRecruit.co, a company known for sourcing pre-qualified professionals for mission-critical construction roles. Their expertise is proving invaluable in helping developers manage rising costs and meet the demands of a rapidly changing market.
The surging demand for data centers has intensified competition in the hiring market, with certain roles proving especially challenging to fill. Construction project managers are at the forefront of this demand. These professionals are essential for steering large-scale, high-density construction projects, keeping timelines in check, and managing a wide range of teams effectively.
Equally crucial are MEP (mechanical, electrical, plumbing) specialists, who design and implement the vital power and cooling systems that advanced data centers depend on. Another in-demand role is that of commissioning specialists, tasked with ensuring all systems meet rigorous Tier III/IV reliability standards before projects are handed over.
Additional high-priority positions include cost estimators, scheduling experts, and construction managers, as well as engineers specializing in mechanical, electrical, and civil fields. These professionals play a pivotal role in turning intricate designs into operational facilities. To help meet this growing demand, iRecruit.co connects companies with pre-qualified candidates for these critical roles, ensuring that projects stay on schedule and within budget.
