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

The rapid expansion of AI data centers is creating significant competition for resources with traditional infrastructure projects such as roads and bridges. In 2025, state and local governments issued a record amount of debt to fund infrastructure, with projections of another $600 billion in sales next year. However, private spending on data center construction has surged to an annualized rate exceeding $41 billion, roughly matching government transportation construction expenditures. This surge is intensifying the demand for construction labor amid existing shortages caused by retirements and restrictive immigration policies under President Donald Trump. Industry experts, including Autodesk CEO Andrew Anagnost, acknowledge that data center projects are drawing critical resources away from other infrastructure developments. Anagnost emphasized that many infrastructure projects will likely face delays and slower progress due to this competition for labor and materials. Consequently, while investment in infrastructure remains high, the booming data center sector could inadvertently slow the pace of improvements to traditional public works.