The Real AI Talent War Is for Plumbers and Electricians
The Real AI Talent War Is for Plumbers and Electricians
As the world grapples with the rapid advancement of artificial intelligence (AI), a less-discussed but equally pressing issue has emerged: the massive shortage of skilled tradespeople, particularly electricians and plumbers, who are essential for building the physical data centers that power AI. The Bureau of Labor Statistics estimates that between 2024 and 2034, there will be a shortage of roughly 81,000 electricians on average each year in the US, measured in terms of unfilled jobs. This shortage is not just a minor inconvenience; it's a critical issue that threatens to slow down the growth of the AI industry.
The Rise of Data Centers
The rapid construction of AI data centers across the country is a major driver of demand for skilled tradespeople. According to a May blog by the International Brotherhood of Electrical Workers, some local affiliates are facing single data center projects that require two, three, sometimes four times their current membership. Chris Madello, an international representative with the United Association, a union for plumbers and pipe fitters, says data center projects are currently demanding more workers than any other single industry. With the growth of AI, which requires a huge amount of electricity to run, "more and more manpower" is required.
The Shortage of Skilled Tradespeople
The shortage of skilled tradespeople is not just limited to electricians and plumbers. The construction industry as a whole is facing a severe shortage of workers, particularly those with advanced skills. Anirban Basu, chief economist of the Associated Builders and Contractors, a trade group for the construction industry, says that the industry has been warning of a "silver tsunami" in which highly skilled baby boomers would retire in large numbers. That period has arrived, and as a result, the industry has been dealing with generally expanding skilled-worker shortages.
The Role of Apprenticeships
Apprenticeships are a crucial part of addressing the shortage of skilled tradespeople. However, the work itself is not very different from other plumbing jobs, but data centers are built on strict schedules, leaving little room for delays or errors. This means that apprentices and trainees may have to go through "more rigorous training" before they are assigned to help build a data center. Dan Quinonez, an executive at the Plumbing-Heating-Cooling Contractors Association (PHCC), says that the plumbing industry is "doing everything" it can to increase the number of workers available. But the problem requires long-term solutions and can't be fixed overnight.
The Competition for Workers
The competition for workers is fierce, particularly in the construction industry. Companies are willing to pay top dollar to attract the best talent, and workers are often enticed by the longer hours and therefore better pay being offered by data center developers. As David Long, CEO of the National Electrical Contractors Association (NECA), says, the group has done a good job keeping pace with retirements by training new electricians. But the scale and technical requirements of data center projects have made it a "challenge" to ensure that all workers are onboarded quickly and safely.
The Future of the Industry
The future of the industry is uncertain, and it's unclear how long demand for tradespeople will last after the AI boom eventually starts to wane. When construction ends, data centers typically keep a small crew on site around the clock, along with a network of outside contractors who handle repairs for multiple facilities. As Charles White, who oversees regulatory affairs at PHCC, says, there's plenty of incentives for plumbers, pipe layers, and HVAC technicians to work on data centers. The projects typically offer higher pay than other types of construction, partially because of their tight schedules, which make it more likely that workers will log overtime.
Conclusion
The shortage of skilled tradespeople is a critical issue that threatens to slow down the growth of the AI industry. The rapid construction of data centers is a major driver of demand for skilled tradespeople, particularly electricians and plumbers. The competition for workers is fierce, and companies are willing to pay top dollar to attract the best talent. The future of the industry is uncertain, and it's unclear how long demand for tradespeople will last after the AI boom eventually starts to wane. However, one thing is certain: the industry needs to address the shortage of skilled tradespeople to ensure the continued growth and success of the AI industry.
