The AI revolution is transforming America’s electrical grid, water infrastructure and manufacturing industry.
Global energy usage is expected to grow 13-15% annually over the next decade, requiring $2 trillion in utility infrastructure upgrades worldwide. With a midsize data center consuming 300,000 gallons of water daily in order to keep servers cool — enough to supply 1,000 homes — water conservation will also become a critical priority.
We must all work together to ensure that the AI-powered economy is a sustainable one. Here’s a look ahead at how AI will impact what we build and how we build it in 2025.
The demand for data centers will present complex labor and supply challenges for contractors. Finding equipment and materials to build data centers at the speed at which they need to be online remains a challenge. Unlike the supply chain disruptions caused by halted manufacturing during the COVID-19 pandemic, the shortages in data center construction are driven simply by high demand. Essential equipment is being purchased faster than it can be produced. Labor shortages also persist, impacting the construction of data centers. Last year, the Associated Builders and Contractors forecasted that the construction industry will need to add at least 450,000 workers in 2025 to keep up with demand.
Increasing energy demands from data centers will drive a transformation of energy infrastructure. According to the real estate and investment firm CBRE, 3,871 MW of data center processing capacity is under construction in the U.S. — a 69% increase year over year. However, limited utility power availability is delaying completion. CBRE notes the cost of utilizing U.S. data centers has risen 20%, driven in part by energy costs. Renewable energy projects will be critical to managing rising prices and ensuring power availability. Many tech companies, including Amazon, Google and Microsoft, are investing heavily in nuclear energy to power AI and cloud operations.
The regulatory environment will reshape microchip manufacturing and expand private water projects. Government funding has sparked a boom in U.S. semiconductor production, which is expected to triple by 2032. As more semiconductor manufacturing facilities are built, it will be important to mitigate environmental concerns. A typical microchip manufacturing facility requires up to five million gallons of ultrapure water each day. By the end of the manufacturing process, the wastewater produced is contaminated with toxic solvents and heavy metals. The result is a growing demand for private water construction, where client-owned and operated water treatment systems ensure that these facilities comply with local regulations. Private and industrial water projects are expected to make up a significant portion of civil construction projects in the new year.
AI will also enhance safety and efficiency on construction sites. AI systems using machine learning and computer vision already monitor real-time activities to identify safety hazards, such as workers wearing improper gear or unsafe conditions. Sensors collect data on machinery performance, and AI analyzes this data to predict when maintenance is needed. Robotics and autonomous machinery are automating tasks like bricklaying, concrete pouring and demolition, while drones assist in surveying large areas and monitoring project progress with high precision.
These innovations are creating smarter, safer and more cost-effective construction processes.
PCL Industrial Construction Co., a subsidiary of PCL Construction, is a diversified, full-service heavy industrial contractor servicing the O&G, petrochemical, renewable energy, green fuels, advanced manufacturing, and minerals and mining industries. Headquartered in Houston, we operate across the U.S., building complex, schedule-driven projects.
For more information, visit pcl.com.
