As artificial intelligence reshapes industries, Nvidia CEO Jensen Huang has shifted the conversation from AI’s threat to jobs to concerns about persistent labor shortages, especially in trades supporting data center construction. Rather than replacing workers, Huang sees the AI expansion fueling demand for electricians, plumbers, and construction workers in the United States and abroad. The rapid pace of data center development is not only creating opportunities but is also exposing constraints in trade workforces. Salaries in several skilled trades are rising, reflecting a market struggling to keep up with soaring demand. Recent years have seen companies urgently seeking solutions, but the scale of planned infrastructure has outpaced workforce growth, prompting industry leaders to raise alarms.
Previous reporting on AI’s impact mostly centered on fears of automation leading to widespread job losses in traditional white-collar sectors. However, industry data already signaled a mismatch between the availability of skilled labor and the mounting project pipeline, particularly for large technology infrastructure. As far back as 2022, unfilled construction jobs were at record highs, and experts noted a pressing need for vocational training. These trends, highlighted by government statistics, indicated that labor shortages in trades would likely worsen before stabilizing, especially as AI-powered infrastructure requirements accelerate.
How Are Data Centers Shaping the Labor Market?
The surge in data center construction, driven by companies such as Nvidia, has made tradespeople critical to AI infrastructure rollout. Electricians and plumbers, among other roles, are experiencing increased wages and new job opportunities, with median annual pay for electricians reaching around $62,000 and plumbers close to $63,000 according to recent statistics. Growth projections for these occupations exceed average rates, with the field of electricians expected to expand by 9 percent over the next decade. Industry executives note that the rapid scale-up of AI capabilities is dependent on expanding the workforce behind these vital construction projects.
Are Worker Shortages Slowing Expansion?
Nvidia’s Jensen Huang describes current labor shortages as a constraint likely to persist, with the pace of data center building overstretching the available pool of qualified workers. The construction sector faced nearly half a million unfilled positions by the end of 2022, marking the highest shortfall in decades. Other corporate leaders, including those at Palantir and Ford, have echoed concerns about the insufficient labor force to match project ambitions, emphasizing the broader impact on both technology and industrial sectors.
Will This Trend Remain Confined to the U.S.?
The labor demand brought on by AI infrastructure is expected to extend globally, not just within American borders. Major economies around the world are launching or scaling up data center projects, deepening the need for skilled trades internationally. Huang remarked,
“There is not one country in the world I can imagine where you don’t need to have A.I. as part of your infrastructure.”
This signals a sustained increase in cross-border demand for workers able to support this technological expansion.
Huang’s perspective challenges common narratives about AI-related job loss, instead drawing attention to the underexamined effects on skilled labor markets. As more sectors harness AI’s capabilities, the strain on vocational training programs and talent pipelines is likely to intensify. Huang commented during the Davos event,
“Everyone should be able to make a great living. You don’t need a Ph.D. in computer science to do so.”
For decision-makers, the data center construction boom highlights the importance of investing in educational pathways and workforce development that align with emerging infrastructure needs. Readers, especially those exploring vocational careers or labor market trends, should recognize the scale of opportunity—and potential challenges—resulting from AI’s material foundation. Adapting policy, training, and industry collaboration will remain essential as the global economy’s digital backbone continues to expand.
