The rapid expansion of data center construction is creating a major workforce challenge for contractors: there are more projects to build, but not enough skilled workers to fill every position.
As artificial intelligence investment continues to drive demand for new data centers, contractors are competing for electricians, plumbers, pipe fitters, welders, safety professionals, foremen, superintendents and project managers.
Industry leaders discussed how construction companies are responding during a recent virtual event focused on recruiting and retaining talent. Their strategies include recruiting closer to home, training existing employees and offering additional benefits to workers willing to travel for projects.
Contractors Look Locally for New Talent
The size of the current data center construction pipeline has created opportunities across a wide range of construction trades.
Jerry Crawford, managing director at Turner Construction, said the industry needs to do more to communicate the variety of career opportunities available on data center projects.
Rather than relying heavily on workers who travel from one project to another, Turner is putting greater emphasis on developing local talent pipelines.
The approach can help contractors build a more reliable workforce while giving people in communities near major projects an opportunity to enter the industry.
Local recruitment is especially important as data center construction expands into new markets across the country.
Training Existing Workers Can Help Fill the Gap
Recruiting new employees is only one part of the solution.
Katie Lane, chief talent officer at Clayco, said contractors also need to invest in workers who are already part of their organizations.
Large-scale hyperscale data center projects can be significantly different from other construction work. Employees who have extensive experience in traditional construction may still need additional training when they move into projects of this size and complexity.
Clayco has responded by placing greater emphasis on what Lane described as a “re-recruiting” approach. Instead of assuming existing employees will remain with the company, the contractor continuously looks for ways to keep them engaged and help them develop.
The strategy includes extending onboarding support well beyond an employee’s first few weeks. Clayco provides additional support during the first six months to a year and has also adjusted incentives for workers involved in larger projects.
Those incentives can include travel rotations and assistance with student loan repayment.
Pay Alone May Not Be Enough
Higher wages remain an important factor when contractors compete for skilled workers, but panelists said compensation is no longer the only consideration.
Companies are increasingly looking at the broader employee experience, including career development, benefits and support for workers dealing with the challenges of large construction projects.
Lane said contractors cannot expect compensation alone to solve retention problems.
For employers, that means understanding what workers need to remain with a company and providing opportunities that extend beyond a paycheck.
The strategy could become increasingly important as contractors compete for the same skilled workers across multiple data center markets.
Traveling Workers Are Becoming More Important
Local hiring can strengthen a workforce pipeline, but it cannot always provide enough workers for projects in remote areas.
That has made workforce mobility an increasingly important part of data center construction staffing.
Brian Schneider, talent acquisition manager at DPR Construction, said the company began placing greater emphasis on mobile workforce strategies around 2023. The rapid growth of AI-related construction the following year made that approach even more important.
Traveling for construction work can create significant financial and logistical challenges for employees. Not every worker can easily move to another state or spend months away from home.
To make relocation and travel more attractive, DPR offers several forms of support. Depending on the project, workers may receive living allowances, per diem payments, project incentives, mobilization bonuses, travel stipends or higher salaries.
These benefits are designed to reduce some of the financial pressure associated with working away from home.
Contractors Are Expanding the Definition of Employee Benefits
The data center boom is forcing contractors to look at workforce benefits differently.
Traditionally, companies have competed for workers primarily through wages and standard benefits. Today’s labor market is pushing employers to consider a wider range of incentives and support.
That includes helping workers travel to remote projects, providing stronger onboarding and training, supporting career development and offering financial assistance.
For contractors, the goal is ultimately the same: attract skilled workers, keep them productive and give them reasons to stay with the company.
As data center construction continues to expand, workforce strategy could become just as important as equipment, materials and project schedules.
The companies that can build strong local pipelines while also supporting a mobile workforce may be better positioned to keep projects staffed as demand for data center capacity continues to grow.
