Name: Labor shortages may delay data center plans
Uploaded: 2025-10-30T15:23:16.863Z
Duration: 2 min 31 s
Description: A persistent shortage of skilled workers in manufacturing, construction, and electrical trades is slowing the rollout of new data centers, which are critical for meeting the rising demand for artificial intelligence.

A persistent shortage of skilled workers in manufacturing, construction, and electrical trades is slowing the rollout of new data centers, which are critical for meeting the rising demand for artificial intelligence.

San Francisco

A persistent shortage of skilled workers in manufacturing, construction, and electrical trades is slowing the rollout of new data centers, which are critical for meeting the rising demand for artificial intelligence. Industry groups project a significant shortfall in available workers, with nearly 1.9 million manufacturing jobs potentially unfilled by 2033 and half a million construction workers needed this year alone.

These labor shortages are not only delaying data center projects but also drawing workers away from other important construction and manufacturing efforts, creating a ripple effect across the broader economy. While optimism remains high due to the scale of new data center investments, experts warn that projects are likely to exceed budgets and miss deadlines due to the complexity and precision required.

Labor shortages may delay data center plans

Potential labor shortage threatens the speed at which new capacity can be brought online. Kate Rogers is in San Francisco, and she has that story for us this morning. Kate. Hi again, David. It seems like we're getting a data center announcement weekly at this point in the frenzy to help feed the need for AI demand. But as you mentioned, there's a glaring bottleneck here that predates the artificial intelligence boom, and that's labor. In manufacturing, construction, and electrical trades, there's an ongoing lack of skilled laborers. Older workers age out without being replaced by younger workers. And add to that, many of these data centers are in locations that don't have robust pools of labor to begin. So by the numbers, if you hear 1.9 million manufacturing workers short by 2033, that's according to the National Association of Manufacturers. The group called it, a quote, economic and national security issue. Associated builders and contractors projects nearly half a million workers will be needed this year alone to fill some gaps. That sector is also facing uncertainty, of course, from tariffs and changes to immigration policy. In September, ABC's data showed industry contraction, but did note there was optimism in its members due to these data center projects. One in five of its members, in fact, was contracted to work on these projects in September. Associated builders and contractors chief economist Anamir Basu telling me, quote, I think these projects are likely to go over budget and miss their deadlines. But that's typical in US construction, even for not so complicated, large projects. You add this layer of complexity, this need for precision that would not exist in a typical apartment building or office building. Do we have the workforce for that? He says, not in abundance, that's for sure. So it'll be certainly interesting to see kind of how this all shakes out. And it's not necessarily that these projects get delayed, but they do pull labor from other important construction and manufacturing projects. So it has a ripple effect that, you know, will touch much more than just these data center build outs. Guys, back over to you. Yeah, Kate, on that final point, I've been wondering about that because you actually have had this happening at a time when things like commercial and single family construction maybe are in a little bit of a soft patch. So I wonder if it's been observable that there's been, you know, the kind of delays elsewhere in the construction world. As you said, there's just big optimism, you know, about the future of these projects and what that means. And what Basu said to me, you know, if you're working for Elon Musk or Sam Altman, they're throwing so much money at the problem. You're going to get it done on those projects, but you're going to be pulling labor from other things that are already in the pipeline. So you think you're going to see this show up, you know, across the economy for sure.

U.S. President Donald Trump ordered the resumption of nuclear weapons tests for the first time since 1992. A day earlier, Russian President Vladimir Putin said Russia had successfully tested a nuclear-powered super torpedo.

Washington

Trump orders nuke tests after Russia tests nuclear-powered torpedo

Sudan and the UAE clash at the UN Security Council—Khartoum accuses Abu Dhabi of funding the RSF amid reports of atrocities.

New York

UN Security Council meeting: Sudan and UAE trade heated accusations

U.S.-China tensions cast a shadow over the APEC summit in South Korea — Leaders debate trade, diplomacy, and the bloc’s mission of free trade.

Gyeongju-si

APEC summit: U.S.-China rivalry looms over trade and diplomacy

Microsoft, Meta and Alphabet recently reported their quarterly earnings and one thing is certain: the jaw-dropping investments in artificial intelligence are only just getting started. This all comes just days after Nvidia became the world's first-ever $5 trillion company.

California

Meta stock falls over 10% after commitment to raise AI spending

CBS News has confirmed that the Pentagon ordered all state National Guards to form what they're calling "quick reaction forces" available for rapid deployments to address potential civil unrest.

Pentagon orders state National Guards to form rapid response units

Taylor Taranto has been sentenced to time served plus 36 months of supervised release after being convicted of threatening former President Barack Obama. He was also pardoned on Jan. 6 Capitol rioting charges by President Trump earlier this year.

Taylor Taranto sentenced to time served for Obama threat

Authorities have charged five people in connection with the overdose deaths of three 19-year-olds, including Leandro De Niro-Rodriguez, the grandson of actor Robert De Niro.

Five arrested over overdose death of Robert De Niro’s grandson

Prince Andrew is being stripped of his royal titles and must move out of his mansion, Buckingham Palace announced on Thursday. Andrew has come under intense scrutiny over his friendship with convicted sex offender Jeffrey Epstein.

London

Prince Andrew stripped of royal titles over Jeffrey Epstein ties

French police have now detained seven people over the robbery at France's landmark museum on 19 October.

Paris

Louvre heist: Five new suspects arrested as search for jewels continues

U.S. Treasury Secretary Scott Bessent said Thursday that China has approved a TikTok transfer deal. CBS News White House reporter Willie James Inman has more.

Treasury Secretary Bessent says China approved TikTok transfer deal

As Hurricane Melissa continues its trail of death and devastation through the Caribbean, Jamaica is taking stock. With over 75% of the country without power and $22 billion in damage, experts estimate recovery could take a decade.

Kingston

Jamaica reels as Hurricane Melissa leaves behind devastation

House lawmakers have been told their paychecks will be delayed until Congress passes a new funding bill. CBS News congressional reporter Taurean Small has the latest on the government shutdown.

House lawmakers' paychecks delayed until government reopens

Israeli planes and tanks pounded areas in eastern Gaza on Thursday (October 30), Palestinian residents and witnesses said, a day after Israel said it remained committed to a U.S.-backed ceasefire despite launching more lethal bombardments in the territory.

Jerusalem

Middle East Conflict

Israel strikes Gaza after asserting commitment to ceasefire

In the Netherlands, the centrist D66 party looks on course to beat the far right in the national election. Exit polls have predicted Rob Jetten's party will claim victory, which could lead him to become the country's youngest ever prime minister.

Amsterdam

Dutch centrist party wins big in election as far right loses support

President Donald Trump ordered the U.S. military on Thursday (October 30) to immediately resume testing nuclear weapons after a gap of 33 years, minutes before beginning a meeting with Chinese President Xi Jinping.

Trump tells Pentagon to resume testing U.S. nuclear weapons

President Trump said he's reached a deal with Chinese President Xi Jinping that could be signed "very soon." Mr. Trump says the U.S. will reduce tariffs on Chinese goods by 10% as China works to reduce the flow of fentanyl.

Global Tariffs

Trump says he's reached a deal with China's Xi

President Trump will hold a bilateral meeting with Chinese President Xi Jinping. This is their first face-to-face since Mr. Trump returned to the White House. Jessi Mitchell anchors this Special Report.

Trump, Xi Jinping meet face-to-face in South Korea over trade

The Bank of Canada made a 25-basis-point cut to its key interest rate while governor Tiff Macklem suggested rates will hold where they are as long as inflation stays in the target range of two per cent.

Ottawa

Bank of Canada cuts key interest rate to 2.25%

After leaving Jamaica with widespread power outages and flooding, Melissa caused fatal flooding in Haiti that has killed 25 people and hit Cuba with a storm surge.

Port-au-Prince

Hurricane Melissa causes floods in Haiti, killing at least 25

Fentanyl production tops the agenda as the U.S. and China discuss curbing exports tied to the deadly opioid crisis.

Fentanyl crackdown central in U.S.-China talks

APEC members face economic uncertainty amid rising US-China rivalry—South Korea prepares for potential fallout from high-stakes talks.

U.S.-China trade tensions leave South Korea navigating APEC fallout

President Putin announced that the Poseidon super torpedo was successfully tested and cannot be intercepted, marking a new stage in Russia’s naval capabilities.

Moscow

Russia says its successfully tested nuclear-capable underwater drone

The Justice Department has put D.C. prosecutors on leave after they submitted a court memo describing those who attacked the Capitol on January 6, 2021 as "rioters." The filing was in a case involving Taylor Taranto, who was part of the Capitol riot and is currently facing unrelated weapons charges.

DOJ sidelines prosecutors over Jan. 6 'rioters' court filing

Sean Grayson, the former Illinois sheriff's deputy who shot and killed Sonya Massey in her home in 2024, was found guilty of second-degree murder.

Illinois

Ex-officer found guilty of murder in Sonya Massey shooting

President Donald Trump is sending America's largest aircraft carrier to the Caribbean to help stop small boats he says are transporting drugs to the U.S. Trump says the U.S. is in "armed conflict" with Venezuelan drug cartels.

U.S. masses more naval forces off coast of Venezuela

The U.S. Federal Reserve announced Wednesday that it will lower its benchmark interest rate by 0.25 percentage points in its second straight cut.

Fed lowers interest rates by 0.25 percentage points

The police operation was one of the most violent in Brazil’s recent history, with human rights organizations calling for investigations into the deaths.

Rio de Janeiro

Raid on Rio drug trafficking gang leaves at least 64 dead

Hurricane Melissa made landfall in Cuba on Wednesday after ripping through Jamaica. CBS News' Jarred Hill has more details.

Havana

Hurricane Melissa makes landfall in Cuba after slamming Jamaica

U.S. President Donald Trump landed in South Korea on Wednesday (October 29) for the final leg of his Asia trip, optimistic about striking a trade war truce with Chinese President Xi Jinping after summit talks with South Korea's Lee Jae Myung.

Busan

Trump lands in South Korea, hopes to strike deal with China's Xi

The U.S. Embassy in Mali is urging all American citizens to leave the country immediately, warning of rising terror threats and a worsening fuel crisis caused by a jihadi blockade.

Breakdown