Electrical Contractors NAICS 238210

Dec 10, 2025 - Data Center Boom Boosts Skilled Trades

• An artificial intelligence investment boom is fueling demand for massive data centers, creating lucrative opportunities for construction workers, according to The Wall Street Journal. Tradespeople, such as electricians, welders, and project managers, are earning 25% to 30% more than they did before as tech giants like Amazon, Google, and Microsoft expand their networks. Workers report newfound stability and perks, as contractors face an estimated nationwide shortage of 439,000 workers, according to the Associated Builders and Contractors. Staffing gaps have disrupted more than half of data-center projects, and backlogs average nearly 11 months. Despite the strain, the surge has transformed lives, drawing apprentices into unions and prompting companies to hire remotely to meet demand. For many, the boom offers higher pay, job security, and opportunities that were once elusive in the construction industry.
• Nonresidential building construction starts increased 17.9% in October compared to the previous month, according to Dodge Construction Network. Commercial starts rose 19.5%, led by data centers (+45.5%) and retail stores (+15.1%). Office construction starts also improved, but starts were lower for hotels (-19.3%), warehouses (-1.7%), and parking garages (-46.1%). Institutional starts grew 3.7% due to project categories other than education and healthcare, which saw starts fall 20.8% and 2.7%, respectively. Manufacturing starts jumped 107.2% in October compared to September, but the sector remains volatile from month to month. Nonresidential building starts were up 5.6% for the first 10 months of 2025 compared to the same period in 2024. On a year-to-date basis, commercial and industrial starts increased 13.6%, while institutional starts fell 2.2%.

• America’s largest homebuilders are struggling to sell new homes despite offering 4% mortgages and deep discounts, according to The Wall Street Journal. D.R. Horton and Lennar have slashed prices and added incentives, but demand remains weak, pushing unsold inventory to levels last seen in 2009. Builders are slowing construction, with D.R. Horton cutting starts by 21% year over year for the three-month period through September. Regional gluts in Texas, Florida, Southern California, and Washington, DC reflect rising resale competition, fewer foreign buyers, and economic uncertainty. Investor activity is at a 15-year low, with institutional buyers demanding steep discounts that builders won’t meet. New homes, often located in less desirable areas and targeted at first-time buyers, are more challenging to sell.
• Demand for electrical contracting may get a boost beginning next year amid growing thirst for electricity. North American construction and engineering spending for power projects in 2026 is expected to rise 4% after anticipated flat growth in 2025, according to FMI’s fourth-quarter 2025 North American Engineering and Construction Outlook. Amid demand from data centers, electric vehicle adoption, and electrification in manufacturing, electricity consumption is expected to see average annual growth of 5% through 2028, according to the US Energy Information Administration. To support rising demand, power infrastructure investments are expected to rise 9% in 2027, 7% in 2028, and 4% in 2029.