The construction of data centers is accelerating at an unprecedented rate, raising concerns about the potential impact on other vital infrastructure projects such as roads and bridges. The need for data storage and analysis capacity is exploding. Industry experts are sounding the alarm that this new boom will siphon off precious resources and skilled labor from other vital public works.
Andrew Anagnost, the CEO of Autodesk, a leading architecture and design software company, emphasized the challenges facing the construction industry. He stated that there is “absolutely no doubt” that the rapid pace of data center construction “sucks resources from other projects.” The current and projected labor shortages in the construction industry are both startling and worrisome. Retirements and backfilling with new immigrants are adding to the availability of workers.
The construction industry is staring into an abyss of skilled labor shortage. This issue is compounded by the retirement of the sizeable baby boom generation. Former President Donald Trump’s immigration crackdown—as well as the pandemic—have further drained this vital workforce. As recovery has set in, companies turned their attention to finding qualified laborers. At the same time, construction worker demand is exploding. This boom will only increase the competition for talent, siphoning the skilled workforce away from vital infrastructure work.
Recent reporting by Bloomberg has begun to shine light on the dangerous consequences of this trend. State and local governments issued an all-time high of new debt in 2025 for the second consecutive year. Analysts expect at least another $600 billion in new debt sales next year alone. With this unprecedented financial activity comes an unprecedented call for immediate and long-term infrastructure investment. With growing urgency to build more data centers, these promising advances are at risk of being undermined.
Anagnost raised concerns that the competition for resources could lead to widespread delays in many other infrastructure projects. He remarked, “I guarantee you a lot of those projects are not going to move as fast as people want.” His insights underscore a troubling reality for future infrastructure improvements as cities and states look to modernize aging systems while grappling with the demands of an expanding digital economy.
Data centers are charging up the competition too, seeking out the same financial and human resources. This newly charged competition exposes the increasing danger in deferring infrastructure improvements. The recent challenges faced by the construction industry will begin to affect the long-term planning and deployment of resources for projects that would improve public safety and connectivity.