Skip to content 
Since 2014, seasonally adjusted annual construction spending on data centers has increased 2,657%. Multi-
hundred-million-dollar, multiyear investment plans are being announced at dozens of locations across the country.
In 2025, ABC began asking contractors in its monthly Construction Confidence Index and Construction Backlog Indicator whether they were under contract to perform data center work. On average, one in eight responding ABC member contractors reported that they were.
Electrical work represents roughly 50% of the pad-ready scope, meaning the industry’s chronic workforce shortage is increasingly concentrated among electricians. Some data center project owners are offering significant financial incentives to attract workers, disrupting local labor markets and bringing in traveling crews. Many new entrants are being upskilled in core competencies as projects require miles of conduit installation and extensive cable pulling.
At the same time, the boom extends far beyond electrical work. Data center projects require hundreds of thousands of square feet of slab-on-grade concrete and roofing, along with extensive plumbing and HVAC systems. These demands add to the workforce pressures already facing other construction sectors.
The urgency is clear: The race to lead in artificial intelligence is accelerating, and time is of the essence.
Government action is also intensifying. Federal policymakers are considering national legislation, while state and local governments are moving quickly to address community concerns related to energy costs and grid capacity, water usage and resilience, environmental impacts, land use, pollution and noise. Transparency and public trust are also central issues.
The result is a rapidly evolving landscape—one that can feel chaotic at times but is also deeply exciting and potentially transformational.
ABC is engaged at every level, nationally and locally, both politically and practically—serving at times as an author of policy and at other times as a critic. The association is in ongoing communication with project owners, contractors, communities and policymakers.
ABC members and staff are actively working to address workforce shortages, permitting reform, health and safety commitments, and community concerns.
One outcome of this effort will be the continued integration of artificial intelligence, virtual reality, wearables and other advanced technologies into construction. ABC believes the rapid buildout of data center infrastructure presents a significant opportunity for transformational leadership across the industry.
SEE ALSO: DATA CENTERS, INTEREST RATES AND MORE PRIMED TO EXACERBATE LABOR SHORTAGE
The post Wiring the AI Economy: Construction Spending on Data Centers first appeared on Construction Executive.
