Texas data centers' demand for electricians is delaying housing construction by 2 months

Data center projects are drawing away many of the state's electrical workers with higher wages that homebuilders can't afford to pay.

1 minute read

May 1, 2026, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Exterior shot of the Skybox Power Campus data center building in Hutto, Texas with cranes visible on a partly cloudy day.

The Skybox Power Campus data center building in Hutto, Texas. | Steve Heap / Shutterstock

Home construction contractors in Texas say competition for electrical workers from data centers is forcing them to delay projects by as much as two months, reports Jowi Morales in Tom's Hardware.

Texas is experiencing a population boom, with over 2.6 million people migrating to the state since 2020, as well as a data center boom. "This means that a lot of construction projects are competing for specialized electrical workers from the same pool of about 71,000 electricians," Morales explains. Because AI companies can afford to pay electricians more, with 45% to 70% of data center construction budgets earmarked for electrical work, they are siphoning away workers from home builders. 

According to an analysis, around 40% of data center projects are similarly delayed, although some AI companies deny this. "Aside from labor shortages, the build out is also facing constraints in the power supply chain, with half of planned projects affected. This massive push to build as many data centers as possible is just pushing available resources — in chips, energy supply, labor, and everything else related to building and running them — to the brink."

Thursday, April 30, 2026 in Tom's Hardware

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic place names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

October 31 - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight