AI BriefingAI Data Centers: Labor Is the Bottleneck
Key point
The primary constraint on the expansion of US AI data centers has been identified as a shortage of skilled MEP personnel.
Details
Analysis suggests that the boom in US AI data center construction may be limited by a shortage of skilled labor.
According to Bernstein analyst Chad Dillard, the figure of 1.8 million total MEP (Mechanical, Electrical, and Plumbing) workers overestimates the labor force actually available for data center construction.
- Narrowing down to non-residential construction workers yields approximately 790,000
- Only about 30% of MEP personnel reside in regions where data center projects are concentrated
- Approximately 70% of all projects are scheduled to be built in those regions
- Data centers compete with other construction projects for the same skilled workforce
Based on recent hiring levels, the US is estimated to be able to add 15,000 workers annually in mechanical, 30,000 in electrical, and 15,000 in plumbing fields. However, considering the slowdown in hiring growth and the high proportion of MEP personnel, this is effectively near the upper limit, with analysis indicating that training additional skilled workers is the real bottleneck.
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