Data centers stymie affordable housing, advocates say
Advocates claim that the boom in data center construction is drawing skilled trades workers away from the home building sector, exacerbating a long-standing shortage and impacting affordable housing. While data center executives like Nvidia's CEO emphasize recruiting tradespeople, industry experts argue this short-term investment deepens existing labor market problems for housing. Calls are being made for government and industry to invest in long-term workforce training.
The rapid expansion of artificial intelligence data centers across the United States is diverting skilled trades workers from the home building industry, according to advocates. Ed Brady, CEO of the Home Builders Institute at the National Association of Home Builders, told The Center Square that data center construction is worsening a decade-long decline in skilled trades, with an estimated shortage of 300,000 workers.
Brady highlighted that while companies like Meta, Amazon, and Google are investing in training to meet their infrastructure needs, this inflates wages and draws the limited pool of skilled laborers away from home construction, impacting affordable housing. He noted that despite a predicted increase in six-figure trades jobs by figures like Nvidia CEO Jensen Huang, data center investments are short-term and don't address the structural issues in the housing workforce.
Brady expressed optimism that workers might return to homebuilding but urged government and industry leaders to invest more in long-term infrastructure to support skilled trades. He mentioned the Trump administration's apprenticeship efforts as a step in the right direction but called for Congress to appropriate significant funds for sustainable workforce programs. Brady also referenced the ROAD to Housing Act, which aimed to restrict institutional investors from purchasing single-family homes, as good policy but one that lacked funding for job creation or affordable housing opportunities, suggesting broader legislative and municipal actions are needed.