Data Centers Are Draining Skilled Labour From Utility and Civil Work

If you run a utility contractor or a civil crew and you have noticed your best people getting calls, there is a reason. Data center construction is competing for the same skilled workers, and the effect is measurable.

What the survey says

The AGC and NCCER 2026 Workforce Survey, carried out in July and August 2026 with 1,830 respondents, found that 28% of firms performed construction work on data center projects in the past 12 months. Among those firms, 58% say data centers increased competition for skilled workers, 49% report increased wage pressure, and 37% name worker or subcontractor availability as their biggest challenge.

Across the whole sample, 42% say shortages of their own or subcontractors' workers delayed projects, and 74% report at least one significant project delay in the past year. More than eight in ten firms increased base pay at least as much as in the previous year, and 36% started or increased spending on training.

Why utility and civil contractors feel it

Data centers need a lot of the same skills as utility work: electricians, operators, foremen, project managers, commissioning and testing specialists. They also pull in civil site developers for earthworks and utilities, and substation builders for the power connection.

The competition is not only for craft labour. The same survey reports that 87% of firms with salaried openings say they are as hard or harder to fill than a year ago. Project managers, superintendents and estimators are in demand on both sides.

Wage pressure matters too. If a data center contractor raises pay for superintendents or electricians, nearby utility and infrastructure employers have to respond or lose people.

What this means for substation and T&D employers

The overlap is clearest in substation work. Data center developers are building or funding new substations to get power to site, and they hire from the same pool of substation project managers, civil leads and electrical crews as utilities.

For utility employers the risk is losing experienced people to projects with shorter timelines and, sometimes, higher pay. The benefit to candidates is real: more options and better pay. The cost to employers is turnover and longer searches.

How to compete

Know your market rate. If you have not benchmarked pay in the past year, you may be behind. Roles tied to data center build-out are moving fastest.

Sell what you offer that a data center project does not. Stability, long-term programmes, a clear career path and a utility employer's safety culture are all real advantages. They only work if candidates hear about them.

Invest in training. Training spending is rising across the industry. Developing people from within is slower but gives you loyalty a hiring spree cannot.

Protect your key people. Check in with senior superintendents, project managers and foremen before they hear from another employer. Retention costs less than replacement.

Be fast. Data center projects hire quickly. A slow process loses good candidates.

Hiring models that help

A permanent core can be supported by temporary specialists at peaks. A multi-hire approach suits programmes that need a full team in a short window.

For candidates

If you work in substation, civil or T&D roles, you are in demand across several sectors. It is worth comparing options, including the long-term stability of utility programmes. See our transmission and distribution work and our open roles.

Common questions about competing with data centers

Do data centers really pay more? The AGC survey says 49% of firms working on data centers report increased wage pressure, but pay varies by role and region. Benchmark your own roles rather than assume.

What can a utility contractor offer instead? Programme stability, a clear career path, training and a strong safety culture. These need to be communicated, not assumed.

Is the pressure likely to ease? Nobody can say for certain. Plan for continued competition, and treat retention as part of your hiring strategy.

Talk to InfraRec

If you are losing people or struggling to fill roles in a competitive market, talk to InfraRec.

Sources

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