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

Improvements to roads, bridges and other infrastructure could take a hit as data center construction accelerates. according to Bloomberg.

In 2025, state and local governments reportedly sold a record amount of debt for the second year in a row, with strategists predicting another $600 billion in sales next year. Most of that money is expected to be used to finance infrastructure projects.

Meanwhile, Census Bureau data reportedly show that private spending on data center construction topped $41 billion annually — about the same as state and local government spending on transportation construction.

All of these projects are likely to compete for construction workers just as the industry faces labor shortages 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 from other projects.

“I guarantee there are a lot of them [infrastructure] projects will not move as quickly as people want,” he said.