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Data Center Boom Threatens Infrastructure Projects Amid Labor Shortages and Rising Competition for Resources

The rapid expansion of data center construction is raising concerns that other critical infrastructure projects could face delays and funding challenges. According to Bloomberg, the surge in data center development may be diverting essential resources—particularly skilled labor—from roads, bridges, and public transit upgrades. In 2025, state and local governments are on track to sell a record amount of debt for the second consecutive year, with analysts projecting another $600 billion in bond sales next year. Much of this funding is intended to support infrastructure improvements across the country. However, Census Bureau data reveals that private spending on data center construction has reached an annualized pace of over $41 billion—nearly matching the amount governments spend annually on transportation infrastructure. This growing competition for construction workers comes at a time when the industry is already grappling with labor shortages. Retirements and stricter immigration policies under President Donald Trump’s administration have reduced the available workforce, intensifying the strain on contractors. Andrew Anagnost, CEO of Autodesk, a leading provider of architecture and design software, warned that data center construction is pulling resources away from other projects. “There’s absolutely no doubt that data center construction sucks resources from other projects,” he told Bloomberg. “I guarantee you a lot of those [infrastructure] projects are not going to move as fast as people want.” As AI and cloud computing continue to drive demand for data centers, the pressure on the construction sector is expected to grow, potentially slowing progress on long-term public works and raising questions about how to balance the needs of the digital economy with the maintenance of physical infrastructure.

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Data Center Boom Threatens Infrastructure Projects Amid Labor Shortages and Rising Competition for Resources | Trending Stories | HyperAI