A surge in AI-driven data center construction across Kansas City is fueling one of the strongest building booms in decades—but experts warn the long-term impact on the job market could be far more complex.
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Construction workers are currently benefiting from billions of dollars in investment tied to facilities operated by major tech players like Google and Meta. However, the very artificial intelligence these data centers support may eventually disrupt a wide range of white-collar jobs.
For workers like union plumber Andrew Jonas, the boom has created steady employment opportunities, even as concerns grow around tax incentives and long-term impacts.
“They’re popping up like crazy everywhere,” Jonas said. “Do I love them? No. Not at all. But they’ve got money and they make for damn good jobs.”
Across the region, more than 50 data centers are planned, under construction, or already operational—representing tens of billions of dollars in investment.
Industry leaders say the scale of work is unprecedented. Ralph Oropeza described the surge by saying:
“It’s like the ‘90s on steroids,” Oropeza said. “Those jobs were in the millions (of dollars). Now we’re talking about jobs in the billions.”
Projects like Meta’s Northland campus and Google’s expanding facilities have drawn thousands of workers, with some earning six-figure incomes through overtime-heavy schedules.
“Those are jobs with pensions, jobs with health insurance,” said Damon Miles, adding that projects like this are “starting points that give people an opportunity.”
The boom has also reshaped workforce development. Apprenticeship programs are expanding rapidly, with unions reporting record enrollment as demand for skilled trades surges.
Despite the short-term gains, economists warn that the employment benefits may shrink significantly once construction ends.
Chris Kuehl explained:
“It’s like most technologies,” Kuehl said. “The startup phase is always the best part, because that’s when you’re getting all the building and all the investment. But once it’s completed, it settles into another pattern.”
The numbers highlight the shift. A data center project that employs over 1,000 construction workers may ultimately require only around 100 permanent staff once operational.
“You don’t have to be next to a data center to use that data center,” Kuehl said. “You can be anywhere.”
While permanent roles—such as technicians and engineers—offer solid pay, they are far fewer in number compared to construction jobs.
Still, industry leaders argue that ongoing maintenance work will continue to support employment.
“They’re kind of the gift that keeps giving when it comes to jobs,” said Bo Moreno.
As AI automates more office-based roles, skilled trades may become more secure. Physical construction work remains largely resistant to automation, reversing decades-long trends where white-collar jobs were considered safer.
“It’s kind of the revenge of the trades,” Kuehl said. “Once upon a time, you looked at the kids that went into trade school as, ‘Oh, those are the losers that can’t cut it in college.’ Now you’ve got a bunch of college grads borrowing money from the people who went to trade schools.”
The construction surge comes amid a cooling labor market. According to Federal Reserve Bank of Kansas City, job growth has slowed significantly, with some sectors even seeing declines.
Locally, construction employment rose by more than 9%, while overall job growth remained flat—highlighting the outsized role of data center projects.
Residents and policymakers are weighing the benefits of large-scale investments against concerns such as tax abatements, energy usage, and long-term economic returns.
Projects like the proposed “AI factory” in Independence could bring billions in investment but also face legal and political scrutiny.
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Unlike traditional manufacturing plants, data centers may not generate large ecosystems of nearby suppliers or businesses.
Instead, their economic impact may be concentrated in utilities and energy sectors, where demand for power and cooling infrastructure is expected to rise.
Kuehl framed the situation as part of a broader economic cycle:
“It’s always been one of the hallmarks of capitalism: creative destruction,” Kuehl said. “If one industry is destroyed, another one comes to replace it.”
For now, Kansas City’s data center boom is delivering strong economic benefits, particularly for construction workers. But as AI adoption accelerates, the long-term labor landscape may shift dramatically—creating new opportunities while disrupting traditional career paths.
Originally reported by Thomas White, The Beacon in KCUR.
