The Artificial Intelligence (AI) revolution is reshaping industries across the globe, and construction is no exception. Yet the advantages and opportunities offered by AI come with their own set of challenges.
As a result of the massive expansion of AI data centers, global energy usage is expected to increase between 13-15% each year over the next decade, requiring an estimated $2 trillion of investment to upgrade utility infrastructure worldwide. The world’s water infrastructure will also be impacted. A midsize data center requires 300,000 gallons of water each day – or enough to supply 1,000 homes – making water conservation an increasing priority.
From reimagining America’s electrical grid to creating new specialized career paths, the role of the construction industry in building the AI economy cannot be overstated. Here is how AI will influence what we build and how we build it over the next few years.
1. An Emerging Tech Field: Redefining Careers in Construction
While field operation positions remain the heart of the construction industry, wide adoption of technology such as building information modeling, automation tools, and robotics are creating new career pathways. Engineering and tech-minded individuals are increasingly finding positions with construction companies, serving as the architects of the industry’s AI transformation. AI is a powerful tool, but it can never replace human reasoning. The data output of a generative AI platform will only be as good as the data that is uploaded to the model. Standardizing systems, processes, and data collection across construction teams will become increasingly critical to ensure the consistency and accuracy of the data being used for AI purposes. The importance of this will create new roles for data analysts and AI experts.
As technology and AI focused roles grow, it may add to the growing labor shortages in other areas of the industry. This impacts the ability to deliver data center projects as fast as tech companies need them to be online. The U.S.-based Associated Builders and Contractors organization forecasts that the construction industry will need to add at least 450,000 workers in 2025 to keep up with current project demand. Compounding the issue is the specialized skillset required in the field for data center construction. Training takes time and, while the industry has ramped up apprenticeship and recruitment efforts, the field labor shortage will likely continue to be a focus for years to come.
2. Transforming Energy Infrastructure: Renewable and Nuclear Solutions
According to real estate investment firm CBRE, there are 3,871 MW of data center processing capacity currently under construction in the U.S. This is an incredible 69% increase year over year. Yet the limited availability of utility power to energize these facilities remains an obstacle. Utility companies are struggling with both generating capacity and transmission to meet these growing power demands. As a result, CBRE says the cost of utilizing a U.S. data center is up 20%, due to the rising cost of powering data centers.
Constructing renewable energy projects will become critical to mitigating rising energy prices and ensuring there is enough power for the technology of the future. Solar energy has already seen massive expansion in the U.S., representing 65% of new energy capacity added to the grid in the first half of 2024, according to the Solar Energy Industries Association.
Many tech companies also see great potential in nuclear power. Amazon, Google and Microsoft have each announced major investments in nuclear energy to help power artificial intelligence and cloud businesses. Today’s reactor models are vastly different than their predecessors, driving the need for new regulatory standards. Several industry groups are working with the government to update standards to reflect the current technology and accelerate the approval timeline.
3. Enhancing Jobsite Safety and Efficiency with AI
AI is already helping to ensure each worker remains safe on the job. On construction sites, AI systems include machine learning algorithms and computer vision monitoring real-time activities to identify and notify project teams of safety hazards, such as workers not wearing proper gear or operating in unsafe conditions.
AI is also transforming the maintenance of construction machinery and equipment through predictive maintenance. Sensors collect data on machinery performance, and AI analyzes this data to predict when maintenance is needed. This approach reduces downtime, prevents costly breakdowns, and extends the life of the equipment. Additionally, AI-powered robotics and autonomous machinery automate tasks such as bricklaying, concrete pouring, and demolition, while drones assist in surveying large areas, tracking and monitoring project progress with high precision. These innovations lead to smarter, more efficient construction workflow processes, reduced costs and enhanced safety.
4. Investing in More Efficient Data Centers
The AI industry, valued at $196 billion in 2023, is projected to grow at an impressive annual rate of 36% through 2030. However, energy demand and water usage remain concerns. Ultimately the world's resources can only support a certain level of advanced data processing.
In response to these challenges, companies are increasingly investing in creating more efficient data centers. This includes enhancing the processing power of microchips, which will in turn create data centers that use less energy and consume less water. Amazon recently announced a new data center component with the potential to increase the computing power of its data centers by 12% while simultaneously improving energy efficiency. The company also says the new component will be modular in design, so older data centers can be retrofitted with the new, more efficient technology.
Building the AI-Powered Future
Artificial intelligence has already transformed the way many of us live and work. Over the next several years the construction industry will play a critical role in building the data centers and energy infrastructure that keep the AI economy running.
