AI data center boom could be bad news for other infrastructure projects

The data center construction boom could impact improvements in roads, bridges and other infrastructure. according to bloomberg,

In 2025, state and local governments reportedly sold record amounts of debt for the second consecutive year, with strategists predicting sales of $600 billion next year. The majority of that money is expected to finance infrastructure projects.

Meanwhile, Census Bureau data reportedly shows that private spending on data center construction was running at an annual rate of more than $41 billion – roughly equal to state and local government spending on transportation construction.

All of these projects are likely to compete for construction workers, as the industry faces a labor shortage due to retirements and President Donald Trump’s immigration crackdown.

Andrew Anagnost, CEO of architecture and design software maker Autodesk, told Bloomberg that there is “absolutely no doubt” that data center construction “sucks resources away from other projects.

“I guarantee you lots of these [infrastructure] Projects will not move forward as fast as people want,” he said.

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