Johnny Taylor of SHRM warns that an AI-fueled nationwide data-center construction boom has created an acute shortage of skilled-trades workers. He attributes the gap to a declining U.S. birthrate since 2000 and a cultural shift toward college over trades. Reports project 6–15% potential displacement among knowledge workers while demand rises for electricians, plumbers, HVAC techs and other trades; tech firms are investing in training to help close the gap.
AI Boom Sparks Acute Shortage Of Skilled-Trade Workers Amid Data-Center Construction Surge
AI boom is fueling a massive demand for skilled trade workers
Johnny Taylor, president and CEO of the Society for Human Resource Management (SHRM), warned on "The Hill on NewsNation" that the next phase of the AI revolution must include a renewed focus on preparing workers for skilled-trade roles.
His comments come as a nationwide boom in data-center construction — and rising AI adoption — is creating strong hiring demand for electricians, HVAC technicians, welders and other tradespeople. At the same time, tech companies including Google and Meta are investing in workforce training to help close the gap.
"So, we have this funny little problem," Taylor said. "We've been short on skilled-trades workers for a long time. We've been talking about it for decades. Then all of a sudden, the data center boom occurs, and people are looking for talent, and we don't have it."
Taylor said this is the first time he has seen demand for skilled-trades labor clearly outstrip supply. He pointed to a long-term demographic trend — the U.S. birthrate has fallen since about 2000 and declined further during the COVID-19 pandemic — and a cultural shift that pushed many young people toward four-year colleges rather than trade careers.
"The result is we simply didn't have enough babies," Taylor said. "And the ones we had, well, they all went to college. And they weren't interested in these skilled-trade jobs."
Which Jobs Are Most and Least Vulnerable to AI?
According to the U.S. Career Institute, occupations likely to remain relatively secure as AI spreads include electricians, plumbers and nurse practitioners, while roles such as some software developers, copywriters and certain marketing positions face higher AI-related risk.
Industry estimates cited by Taylor include a projected need for about 300,000 electricians over the next decade. He also expects continued strong demand for construction workers, welders and HVAC technicians as building activity and data-center projects expand nationwide.
AI’s Projected Impact on Knowledge Work
Anthropic released a report estimating that roughly 8% of knowledge workers — about one in 13 employees who regularly use AI tools — could be displaced by AI. SHRM’s own data, Taylor said, suggest approximately 6% short-term displacement, with that figure potentially rising to as much as 15% within five to seven years if adoption accelerates.
Training Investments and Corporate Action
In response, major tech firms are funding training programs: Google has pledged to train 25,000 veterans for skilled-trade jobs, while Meta has committed $115 million to construction workforce training initiatives. Taylor emphasized that employers increasingly expect their workforces to adopt AI tools to remain competitive.
"If your workforce is not using AI, not embracing AI, you're going to lose the battle," Taylor said. "And frankly, CEOs are charged with winning."
The confluence of demographic trends, shifting career preferences and rapid AI-driven demand highlights a policy and training challenge: expanding accessible, high-quality pathways into trades and reskilling programs that meet the needs of a changing economy.
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