AI data center surge may negatively impact other infrastructure developments

Data Center Boom May Impact Infrastructure Upgrades

According to Bloomberg, the rapid expansion of data center construction could negatively affect upgrades to roads, bridges, and other public infrastructure.

Reports indicate that in 2025, state and local governments issued a record-breaking amount of debt for the second consecutive year. Experts anticipate another $600 billion in debt sales next year, with the majority of these funds earmarked for infrastructure development.

At the same time, data from the Census Bureau reveals that private investment in building data centers has reached an annualized pace exceeding $41 billion—an amount comparable to what state and local governments are spending on transportation projects.

This surge in construction activity is expected to intensify competition for skilled labor, especially as the sector grapples with worker shortages due to retirements and stricter immigration policies introduced during President Donald Trump’s administration.

Andrew Anagnost, CEO of Autodesk, emphasized to Bloomberg that data center projects are undoubtedly diverting resources away from other construction efforts. “I can assure you, many of these infrastructure projects won’t progress as quickly as people hope,” he remarked.