Recently, Meta announced it was committing $115M to training construction workers. More specifically, to train new talent straight out of high school in the necessary skills for building out data centers, as demand for the infrastructure continues to grow. This large sum includes funds for housing, a daily stipend, covered tuition and a guaranteed job after graduation. And Meta isn’t the only tech giant getting in on the action, with Google following suit shortly after with a similar $50M commitment.
Sounds like a dream for Gen Z grads struggling to decide their next step, right? Given my line of work, I have a front-row seat to how the trades have evolved over these past few years. It’s no longer the ‘Scarlet Letter’ it once was to be a tradesperson; if anything, it’s become the more stable option as AI integration begins to replace entry-level white-collar workers.
However, it’s not as black-and-white as the idea that trades are good and corporate desk jobs are bad. While there is a growing acceptance for blue-collar work in U.S. culture, with 1 in 3 parents betting on trade school for their children, data center projects being their first introduction to this line of work will be a fast and harsh awakening.
The Drawbacks of Data Center-Focused Projects
There are several issues with young workers starting with a blank canvas and no knowledge of the field and getting their first exposure through data center builds.
To start off, data centers are highly specialized projects that require an array of skills for complex build requests that aren’t common knowledge among traditional tradespeople. From wiring electrical rooms to installing HVAC systems, these hyperscale layouts involve repetitive tasks that take years to show tangible progress. During this period, young talent will not be learning the ins and outs of other essential projects, such as residential homes, commercial buildings and renovations.
When the data center boom dies out in the next decade or less, we’ll still need new infrastructure to support everyday life, such as hospitals, schools and transportation systems. If most seasoned industry veterans who previously supported these buildouts retire, and the new pipeline of talent set to replace them is skilled in only one niche, these necessary projects will be severely delayed.
The Aftermath of the Data Center Boom’s Demise
To that point, the market is always changing, and the fact that nobody had even heard of a data center three years ago shows just how quickly building trends shift. While gaining data-center-specific skills might bring more steady, higher-paying jobs today, their dominance and demand aren’t guaranteed. Especially as wealthy hyperscalers devote more funding to shortening timelines and fueling mass production, output will accelerate rapidly, reducing the need for these large labor pools.
The beauty of the construction industry is that people will always need a roof over their heads and businesses to buy products from, guaranteeing longevity in the field, no matter the next tech trend or workforce shift. But if a tradesperson is only useful for a project that’s hot for the moment, that reliability dissolves, putting it on the same playing field as entry-level white-collar positions that are being threatened.
Additionally, in a more traditional construction career path, working on varying projects exposes workers to a dynamic range of clients, business models, and endless networking opportunities. Data center work will equip the new generation of tradespeople with deep technical skills, but it will hold them back from diverse bidding opportunities and project dynamics necessary to take on more leadership positions and potentially even start their own firm.
As an industry historically resistant to adopting technology into their workflows, construction still relies heavily on word of mouth for promotions, bonding on and off the job site, and working through project kinks in real time. Without being in these valuable rooms, young talent will miss moments that are key to a long-term career in the field.
Turning Off the Digital-First Generation
Let’s say these new workers are fine with diving into data center work, knowing they’ll need to eventually pivot to newer projects. Even then, they will be tested greatly by the friction that currently exists in the industry between new, younger talent and seasoned, older workers.
Gen Z is a digital-first generation, prioritizing speed and productivity over traditional systems. If Gen Z sees holes in a process that cause delays or inaccuracies, they won’t see “it’s the way we’ve always done it” as a viable excuse. They’ll question why AI isn’t being integrated into current workflows, given its potential to accelerate bids and improve accuracy, leading to more project wins and significant YoY revenue increases, all while saving hours of labor and headaches from human-error estimating.
But to older generations of workers, who have been honing their craft for decades, they trust themselves more than they trust this latest form of technology that’s suddenly everywhere. And aside from change management, there also needs to be an understanding of how scary it is for these skilled workers to put their financial security on the line. If AI messes something up, it’s not just a minor flub from ChatGPT that we can ignore and figure out ourselves. A silly mistake by an LLM could cost contractors millions, depending on the project's size and complexity.
The reality is this generational divide over adopting digital processes rather than manual methods isn’t going to reach a compromise overnight. This will remain an ongoing battle for Gen Z – one that could affect their day-to-day workflow depending on who manages them. This lack of agency over how and when they get their work done, especially on projects like data centers that would greatly benefit from faster processes, will result in longer, unpaid hours that leave a sour taste in their mouths about the industry as a whole.
Retaining the Tool Belt Generation
It’s inspiring to see the shift over the past couple of years in how our culture is growing to respect trade work and even seek it out as a new mainstream career path outside of college. However, younger generations coming straight out of high school also need to be educated about their options in the industry. Trade work should be treated the same as when young adults go off to college and decide on which niche they want to pursue. It’s not one size fits all, so depending on the kind of project or specialty skill you pursue, you can have a completely different experience and take on the industry.
To retain new talent in construction specifically, we need to reach students before they graduate and outline all the possible paths they can take, along with the potential drawbacks. Selling students on consistent work and financial stability built around data centers could result in a shell-shocked, scrambling workforce in the next decade. Instead of just seeing funding as the solution to combat the labor shortage and attract more workers, we also need to think through what the future of their careers in the field looks like, and how we can best support them in both today’s infrastructure buildouts and tomorrow’s.
