AI Data Center Boom Strains Global Construction Capacity
Data center construction is now the most capacity-constrained sector globally, driven by the rapid growth of AI infrastructure and labor shortages.
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Data center construction has become the world's most capacity-constrained construction sector due to rapid growth in AI infrastructure. Over 70 percent of global markets report data center contractor capacity as tightening or overstretched, with nearly 90 percent of respondents citing shortages in mechanical, electrical, and plumbing trades. The primary challenge is a skilled labor shortage, with about 71 percent of the construction sector reporting insufficient workers, making workforce availability the leading source of cost escalation. Companies are responding by shifting toward prefabrication and modular construction built in factories rather than on-site, establishing long-term supplier partnerships, and expanding data center locations to secondary markets where power and land may be more accessible.
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