AI Data Center Boom Lifts Skilled-Trade Jobs Amid Permitting Backlash
Demand is rising for electricians, welders, pipefitters and HVAC technicians, but New York and Texas have adopted measures that could delay new projects.
The U.S. artificial-intelligence infrastructure buildout is increasing demand for skilled trades, but new permitting restrictions in New York and Texas could delay projects and limit future hiring.
Job postings for welders and pipefitters rose 164% year over year, while the mean minimum salary for data-center jobs increased 125.1% to nearly $208,000. That salary figure includes specialized engineering roles and does not represent typical blue-collar pay.
Maria Flynn, president and CEO of Jobs for the Future, said apprentice-level technicians can earn $40,000 to $60,000, while experienced electricians can earn more than $100,000.
“These are occupations that are becoming increasingly important to the AI economy,” Flynn said.
Data-center construction also supports work involving substations, transmission upgrades, cooling systems, water infrastructure, piping and grid equipment. Every 100 megawatts of new development creates nearly 1,300 local jobs, $110 million in annual wages, $344 million in gross output and $187 million in gross regional product.
Those figures are modeled measures of broader economic activity rather than direct payroll counts. They include construction and downstream jobs, many of which may not continue after a facility is completed. An analysis covering six U.S. markets estimated that 81,000 to 124,000 industrial and downstream jobs were linked to data-center-related tenants.
“We are seeing major sources of demand that are converging at the same time,” Flynn said.
Southeastern Hose in Bremen, Georgia, increased its workforce of 150 employees by 40% over 18 months. The company supplies hoses and expansion joints used in piping systems.
“If there is fluid moving anywhere or a change in temps, there will be a hose or expansion joint in the piping system somewhere,” said Trey Travis, the company’s vice president of operations.
The Sept. 2026 update listed 50.3 gigawatts of operational data-center capacity, 37.7 gigawatts under construction with a 91.7% precommitment rate, and a planned pipeline of 285 gigawatts. Projects face constraints involving power allocation, transmission capacity, infrastructure funding, regulation and community opposition.
A March 2-18, 2026, survey found that 71% of Americans opposed building an artificial-intelligence data center in their local area. Forty-eight percent strongly opposed such construction, while 27% favored it.
New York Gov. Kathy Hochul signed an executive order July 14, 2026, creating a one-year moratorium on new hyperscale data centers. Texas Gov. Greg Abbott directed the Texas Commission on Environmental Quality on Sept. 21, 2026, to halt data-center permits until the Electric Reliability Council of Texas completes an audit. The order also directed grid and water reviews.
“These projects create demand for on-site workers and therefore cannot be offshored or conducted remotely, unlike manufacturing and software,” said Justin Sinkovich, associate professor and associate director of the School of Business and Entrepreneurship at Columbia College Chicago.
Michael Hicks, a professor at Shenandoah University, said public resistance has been driven in part by developers’ conduct.
“Most of the backlash is the result of developers being untruthful with local officials about potential effects,” Hicks said.
He added that “permanent labor market effects are muted,” reflecting the difference between temporary construction employment and the smaller workforce needed to operate a completed facility.
