Skilled Trade Workers Are Earning More in America’s AI Data Center Hotspots

At a glance

• Workers in skilled trades related to AI data center construction earn about 7% more in “data center hotspots” than similar workers elsewhere – a premium that persists even after adjusting for cost-of-living, occupation mix, and company size.

• Plumbers and pipefitters see the largest wage gains, earning 20% more in data center hotspot counties, likely driven by strong demand for cooling infrastructure in data centers.

• HVAC mechanics and drywall installers are experiencing hiring surges – employment growth in these trades is 41% and 112% faster in hotspots where AI data centers are being built, respectively.

• The workforce building AI data centers is slightly more diverse than the broader skilled trade workforce, with Hispanic workers representing 31% of employees in hotspot counties compared to 24% nationally.

• Gen Z workers are slightly over-represented among skilled trade roles in AI data center hotspots, making up 31.9% of hires near data centers compared to 31.2% nationally.

Introduction

Much of the conversation around artificial intelligence focuses on job displacement – the fear that AI might automate away millions of jobs. But this narrative overlooks a practical and less-discussed impact that AI will have on jobs: the massive physical infrastructure required to power AI is creating surging demand for skilled trade workers around America.

Today’s AI boom largely runs on data centers. These sprawling facilities house the servers and cooling systems that train large language models and power most of today’s AI applications. And building them requires a variety of trades, including electricians, HVAC technicians, plumbers, welders, drywall experts, construction managers and more – traditional trades that have long formed the backbone of America’s skilled trade workforce.

To understand how today’s AI infrastructure buildout might be affecting skilled trade jobs and pay, we analyzed payroll data from more than 400,000 small and medium-sized businesses on Gusto, focusing on seven key construction and trades occupations. We then compared wages and employment patterns in U.S. counties with high concentrations of AI data center construction – what we call “hotspots” – against all other counties in the United States.

Our findings show a striking pattern: skilled trade workers in these data center hotspots are benefiting from today’s AI infrastructure boom, with measurably higher wages and stronger hiring for many trades. While our data don’t allow us to definitively prove that exploding demand for AI data centers in these areas directly caused these wage gains, the patterns are consistent with what economic theory would predict: when demand for specialized trades increases faster than supply, wages rise.

Wage Impacts: A Persistent Premium

Skilled trade workers in data center hotspots earn meaningfully more than their counterparts elsewhere. Gusto data show that the median monthly wage for workers in hotspot counties is $5,634, compared to $5,262 in the rest of the country – a 7.1% premium. This includes wages for seven key occupations closely linked to data center construction: 

• Electricians

• HVAC Mechanics and Installers

• Construction Managers

• Plumbers, Pipefitters, and Steamfitters

• Welders, Cutters, Solderers, and Brazers

• Cement Masons and Concrete Finishers

• Drywall and Ceiling Tile Installers

This wage premium isn’t simply explained away by higher costs of living or the types of companies hiring in hotspot vs. other areas. To show this, we used a simple cross-sectional regression to show that after controlling for regional cost of living, the mix of occupations, and company sizes the wage premium is still a statistically significant 5.8%

In other words, workers in AI data center hotspots appear to earn genuinely higher real wages, not just nominally higher pay that gets eaten up by expensive housing and groceries.

This wage premium isn’t simply explained away by higher costs of living or the types of companies hiring in hotspot vs. other areas. To show this, we used a simple cross-sectional regression to show that after controlling for regional cost of living, the mix of occupations, and company sizes the wage premium is still a statistically significant 5.8%

In other words, workers in AI data center hotspots appear to earn genuinely higher real wages, not just nominally higher pay that gets eaten up by expensive housing and groceries.

Note: Regression of log wages on a binary indicator for data center hotspots and various controls. Standard errors are clustered at the company level. 

Which Occupations Benefit Most?

The wage premium in data center hotspots varies widely by trade. Plumbers and pipefitters see the largest gains, earning about 20% more in hotspot counties than elsewhere. This likely reflects the specialized demand for cooling infrastructure – data centers generate enormous amounts of heat, and sophisticated plumbing systems are essential for water-based cooling solutions.

Construction managers also earn a meaningful premium (+7.3%), while HVAC mechanics (+4.3%) and welders (+1.2%) see more modest gains. Interestingly, welders in hotspots have experienced the fastest wage growth over the past two years (+12 percentage points faster than elsewhere), suggesting rising demand for their skills.

One surprising finding is that electricians in data center hotspots actually earn about the same as electricians elsewhere (slightly less at -2.5%). This likely reflects the reality of our analysis focusing on small-business hiring. Many larger union electrical contractors – who often command premium wages for data center work – aren’t  represented among the small and medium-sized employers we focused on for this analysis.

Employment Impacts: Targeted Hiring Surges

Overall employment growth for skilled trade workers is similar in hotspot and non-hotspot areas – both regions saw roughly 25-28% growth in employment over the past year. But this overall picture masks striking differences at the occupation level.

Two trades stand out for dramatically faster hiring in data center hotspots. Drywall installers saw employment grow 112% faster in hotspots than in the rest of the country – likely reflecting the final construction phases of many new facilities. HVAC mechanics experienced 41% faster employment growth, consistent with ongoing demand for climate control expertise.

Meanwhile, we found that despite much higher wages that construction manager hiring is growing much more slowly in hotspots (+4.9%) compared to other U.S. areas (+27.5%). This may reflect small company’s limited ability to hire, as experienced construction supervisors are in short supply and hotspot employers may be competing fiercely for a limited talent pool.

Demographic Impacts: A More Diverse Workforce

The skilled trade workforce building America’s AI infrastructure looks slightly different from the broader construction workforce. Most notably, data center hotspots have a slightly more ethnically diverse workforce.

Hispanic workers make up 30.8% of the skilled trade workforce in hotspot counties, compared to 24.2% elsewhere among small businesses – a gap of nearly 7 percentage points. Asian and Pacific Islander workers also represent a larger share (2.4% vs. 1.3%), as do Native American workers (1.5% vs. 0.1%). Conversely, white workers actually make up a smaller share of the hotspot workforce (60.9% vs. 70.1%).

These patterns largely reflect the geographic distribution of data centers, many of which are located in relatively diverse metropolitan areas throughout Virginia, Arizona, and California and Texas.

Generational Distribution

The age profile of workers in hotspots mostly mirrors the rest of the country: Millennials (ages 29-44) make up the largest share in both regions at roughly 45%, followed by Gen Z (ages 18-28) at about 31%. Gen X workers represent about 20% of the workforce, while Boomers account for a small share (around 4%). However, among age groups Gen Z workers are slightly over-represented among skilled trade roles in AI data center hotspots, making up 31.9% of hires near data centers compared to 31.2% nationally.

Interestingly, the wage premium for workers in data center hotspots exists for all generations, although it’s actually largest (in percentage terms) among older construction workers. Boomers in these trades earn about 19% more in hotspots than Boomers elsewhere, while Millennials see a 7.3% premium and Gen Z workers see a 5.4% premium. 

This most likely reflects the value of construction experience in a tight labor market – seasoned tradespeople with decades of expertise may be especially sought after for complex data center projects.

What This Means for Small Businesses

For small-business owners in the construction trades, these patterns present both opportunities and challenges. Operating in or near a data center hotspot may mean access to higher-paying customer contracts – but it also likely means competing for workers in a tight labor market to many trades.

Our data suggest that certain construction specializations may be particularly sought-after in data center hotpots. Plumbing contractors with expertise in industrial cooling systems, HVAC businesses that can service large commercial facilities, and welding shops with capacity for structural work all appear well-positioned to benefit from today’s surging data center demand.

At the same time, small businesses outside of hotspots shouldn’t necessarily conclude from our analysis that they’re missing out. After all, we find overall employment growth in core construction trades remains strong across the country, and the fact that the average national wage premium remains around 7% suggests that skilled trade workers in these fields across the country are experiencing strong pay gains today – despite an overall U.S. labor market that has cooled in the past year.

Methodology

This analysis compares skilled trade workers in data center “hotspot” counties – defined as the top 10% of US counties by total data center power capacity – against workers in all other counties. Data center locations come from Business Insider’s comprehensive database of US facilities, compiled from air permit applications and industry sources. Wage and employment data come from Gusto payroll records covering December 2023 through December 2025.