From Barron's, May 4/5:
The artificial-intelligence boom was just getting past its last bottleneck. Now, another one is popping up—electricians.
A year ago, a shortage of natural gas turbines was the biggest limiting factor behind the AI boom, because data centers couldn’t build enough power plants to get electricity to those data centers. But turbine-makers have been ramping up production.
Today, a shortage of contractors with electrical expertise is the most pressing problem.
Rob Gaudette, CEO of power producer, laments the shortage of “qualified construction crews. Because if you have a turbine and no humans, you just have a turbine.”
GE Vernova, the global leader in turbines said last month that turbines “are really not the gating item” slowing down data centers, pointing instead to other factors like a lack of EPCs, or engineering, procurement, and construction firms. EPCs can mobilize hundreds of workers to build major infrastructure projects.
It is not a problem that can be solved instantly. The speed of the AI buildout is straining America’s skilled electricity workforce. Over the next decade, America is expected to need an additional 81,000 electricians a year, the Bureau of Labor Statistics says, among the fastest growth rates of any profession.
By 2034, America is on track to have less than two electrical engineers for every megawatt of power capacity the country needs to add, down from seven in 2024, according to Ben Lowe, an energy expert at consultancy Roland Berger. “The fact of the matter is we just don’t have enough people to do the work,” he said.
The shortage has tech companies worried. Big tech players have no time to waste when it comes to the AI buildout. They’re spending $700 billion this year alone to build out data centers and other major capital projects. Some of the tech giants are getting directly involved in training the next generation of electricians. Last year, Google said it would support a plan to train 100,000 new electricians and 30,000 apprentices, because of the shortage.
Having a good contractor on call is now a must-have for companies building power plants, and they are willing to pay up for them. NRG locked in a multi-project deal with Kiewit, a Nebraska-based EPC, to install GE Vernova turbines. “It’s a three-party agreement,” Gaudette said in an interview with Barron’s.
Kiewit is privately held, but EPCs that are publicly traded have seen big benefits....
....MUCH MORE
