Utility Dive•about 1 month ago
Labor, tariffs collide with data center boom
Key Takeaway
The rapid expansion of data centers is creating substantial demand for new power infrastructure, but developers and large consumers must navigate broader construction challenges posed by labor shortages and tariffs.
AI Summary
- •The data center sector is experiencing booming construction demand, driving significant activity for associated power projects.
- •Developers focused on power infrastructure for data centers can anticipate strong market opportunities and continued demand.
- •However, the broader construction industry faces headwinds from workforce shortages and tariffs, which could impact project costs and timelines for non-data center related builds or indirectly affect the supply chain for data center power projects.
Topics
datacenterinterconnectpolicytransmission
Article Content
Contractors report booming demand for certain types of builds, particularly data centers and power projects to support them. But outside those sectors, workforce shortages and tariffs weigh on construction.