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Skilled labor shortage slows US data center construction growth
Indeed data shows construction hourly wages rose 3.4% from May 2025 to 2026, highlighting why builders are struggling to staff projects.
Insurance Journal reports that after record order books, a shortage of skilled trade labor is starting to cap growth for US data center builders and the craft-labor providers that build them. Some executives have played down the strain, but others say the lack of electricians, pipe fitters, and site supervisors is forcing companies to turn away work or poach crews from smaller contractors.
The article points to forward-looking earnings estimates for major craft-labor suppliers, including Sterling Infrastructure, MasTec, Quanta Services, Emcor, and Comfort Systems, which are generally expected to moderate after a blockbuster period. Bloomberg Intelligence analyst Scott Levine attributes the slowdown to tight labor supply rather than cooling demand, while KeyBanc analyst Sangita Jain says estimates may be revised higher as backlog is worked through.
Comfort Systems cited supply constraints in its latest book-to-bill slowdown, according to its June earnings call, with CFO William George saying there is more work available if labor were available. The broader construction sector faces an aging workforce, too few young people entering the trades, and limited apprenticeship and training pipelines, according to Associated General Contractors of America director of market insights Macrina Wilkins.
To respond, companies are raising pay, leaning on staffing firms and union contractors, and ramping up recruiting through social media and high-school outreach. Indeed data cited in the article shows overall US pay rose 2.4% between May 2025 and 2026, while construction hourly wages increased 3.4%, with electrician roles showing year-over-year wage growth of 4.6% for electricians, 6.6% for journeyperson electricians, 8.2% for apprentice electricians, and 9.9% for commercial electricians. The article also notes electrical work accounts for about half of labor on data center projects and that employment in electrical, plumbing, and HVAC has risen 30% since 2016.