Data center construction is experiencing extraordinary growth and is expected to continue into the foreseeable future. Hundreds of new projects are planned or breaking ground across the country and the world, driven by the digital transformation, greater computing power required for artificial intelligence (A.I.) and rising data-generation demand.
The sector, according to McKinsey & Co., is on track to exceed 200 GW capacity by 2030, with investments in the trillions and market value projected to reach nearly $700 billion by 2034, according to Fortune Business Insights.
Data center build-out has been ongoing for decades, but today’s speed and scale of construction is unprecedented, according to McKinsey & Co. More than 11,000 data centers operate globally, according to S&P Global, with equipment including servers, power generation, electrical components for cooling and automation and connectivity. As these systems grow, their infrastructure will also need to be updated regularly, and that includes mechanical, electrical and plumbing—so there’s the promise of ongoing service to the project and a long-term customer.
Reaching mass scale
CNBC reported that Amazon will invest $12 billion in an A.I. data center in Louisiana, “which will create 1,700 roles for electricians, technicians and security specialists,” in addition to hundreds of full-time positions. Microsoft and Alphabet (Google) have poured hundreds of billions into constructing sprawling campuses. Currently under construction, Meta’s Richland Parish Data Center campus called Hyperion in Richland Parish, La., is a 2,000-plus-acre facility on target to become one of the largest A.I. facilities in the country. At over 4 million square feet, it is designed to deliver more than 2 GW of computer capacity to handle open-source large language model development.
Data center construction is a massive undertaking with inherent challenges and constraints, such as equipment delays and power bottlenecks, as well as the lack of skilled tradespeople to help complete these projects. It’s a problem that’s hampering growth and magnifying the already current labor shortage and lack of specialty technicians.
Some electrical contractors are already moving to data center upstarts—complete with higher pay and the lure of long-term, multiyear work. For electrical contractors and systems integrators, these projects can encompass infrastructure, physical security, power, critical environmental systems and cybersecurity-designed architecture.
IBEW Local 446 in Monroe, La., is already immersed in the trend, as building continues at the Hyperion campus in the community of Holly Ridge in Richland Parish. According to an article by Local 446, “The Data Center Surge: A New Generation of IBEW Jobs,” these projects are uniquely dependent on the skills of electrical workers and between 45% and 70% of the construction budget goes to the electrical subcontractor.
“The explosive growth in the data center industry is a wave we are perfectly placed to ride. The stakes are high for our customers, and the work needs to be of the highest quality and on the shortest timelines. We were made for this,” said Kenneth W. Cooper, IBEW international president, in the article.
The Wall Street Journal calls data centers a “gold rush” for construction workers, and staffing company Kelly Services cites surging demand for specialized and technical professionals, who generally earn 25% to 30 % higher pay. Some projects are offering other perks, such as sign-on bonuses, housing and more comfortable working environments, in addition to the attractive pay and job stability.
