A surge in data center construction may slow improvements to roads, bridges, and other public infrastructure. According to reports, state and local governments sold a record amount of debt for the second consecutive year in 2025, with strategists forecasting another $600 billion in sales next year. Most of that money is intended to fund public infrastructure projects.
At the same time, private spending on data center construction reportedly reached an annualized rate of more than $41 billion. This figure is roughly equivalent to what state and local governments spend on transportation construction.
All of these projects are likely to compete for the same pool of construction workers. This competition comes as the industry already faces labor shortages driven by retirements and stricter immigration policies.
Andrew Anagnost, the CEO of design software company Autodesk, stated there is absolutely no doubt that data center construction draws resources away from other projects. He warned that many public infrastructure projects are guaranteed not to progress as quickly as planned due to this competition.