"AI investments in data center construction and transmission lines will bring "tailwinds" for the essential economy since the buildout will require support from construction workers, plumbers, electricians, and other blue-collar workers, Farley said. A recent report from the ALFA Institute found that $100 billion in AI data center investment could create up to half a million jobs in the U.S. over five years, spanning construction, manufacturing, transportation, and real estate."
"But on the other hand, Farley said there isn't a good track record of applying new technologies to make blue-collar workers more productive and pointed to automation as an example. "Those innovations really took jobs out of the job market and out and out of the essential economy," he said. In fact, productivity in the essential economy has gone down over the past 20 years, while white-collar productivity has gone up, according to Farley."
AI has disrupted entry-level white-collar employment while effects on essential blue-collar sectors remain uncertain. AI investments in data center construction and transmission lines will drive demand for construction workers, plumbers, electricians, and other blue-collar roles. A report estimates $100 billion in AI data center investment could create up to half a million U.S. jobs over five years across construction, manufacturing, and transportation. Historical automation removed jobs from the essential economy, and essential-economy productivity has declined over the past 20 years while white-collar productivity rose. A St. Louis Fed study found much lower AI usage and time savings for blue-collar workers than for computer and management roles. A workforce gap of about one million workers exists to build and operate AI data centers and factories.
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