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Data Centers Bolster Economic Growth in Skilled Trade Sectors

Obstacles hampering the resurgence of skilled trades, and strategies to rejuvenate the skilled workforce in the data center industry.

Data Centers Revitalizing Skilled Trade Economy through Growing Demand
Data Centers Revitalizing Skilled Trade Economy through Growing Demand

Data Centers Bolster Economic Growth in Skilled Trade Sectors

In the digital age, data centers have become the backbone of the economy, powering AI and high-performance computing. However, a critical shortage of tradespeople and technicians in the data center industry is posing a significant challenge.

Forecasting demand for skilled trades is crucial for building a talent pipeline. According to industry projections, annual recruiting for critical trades roles in the data center industry could be more than 20 times the projected increase in net new jobs from 2022 through 2032.

This shortage is not unique to any particular market. In any market, it's important to talk to the local labor force about projects to know which skilled trades are in short supply. For instance, Mechanical, Electrical, and Plumbing (MEP) workers are especially hard to find in the data center industry.

The data center industry recognizes the importance of advancing the skilled trades. Ensuring the U.S. has enough skilled tradespeople is one of the keys to winning the AI arms race. To this end, partnerships with general contractors who can bring in workers from other locations where there's less demand for their services can help.

Moreover, the training of skilled workers for the data center industry is actively supported by specialized educational programs and industry partnerships in the USA. For example, Northern Virginia Community College (NOVA) offers a one-year certificate and a two-year degree in data center operations. A recent graduate from NOVA was recently recruited.

The perception of trades careers as low-paying and dead-end jobs is being challenged. One in three Americans now recommend trade school over college for high school graduates. The salary of the NOVA grad is now north of $90,000, in a job category where median pay jumped more than 40% between 2021 and 2024.

The construction of a massive data center campus in Abilene, Texas, led by the Stargate consortium and OpenAI, is a testament to the industry's need for skilled trades. This project has triggered an economic boom in the city, creating hundreds of local jobs for technicians in operations and maintenance. When the data center campus is up and running, it will host as many as 400,000 Nvidia GPUs.

Andrew Schaap, the CEO and Board Member of Aligned Data Centers, emphasized the importance of the skilled trades in the data center industry. He stated, "The construction of the data center campus in Abilene, Texas, has been a game-changer for the city, and we're proud to be contributing to its growth."

In conclusion, the data center industry is in dire need of skilled tradespeople. By prioritizing the advancement of the skilled trades, the industry can build the data centers needed to stay competitive and drive the digital economy forward.

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