The rapid expansion of AI infrastructure is increasingly reshaping the global construction market. According to Turner & Townsend’s latest Global Construction Market Intelligence report, data centers remain the world’s strongest source of construction demand, with AI projects driving unprecedented pressure on contractor capacity, specialized labor, and supply chains. The report says more than 70% of the 112 markets it analyzed are already experiencing tightening or overstretched contractor capacity for data center construction.

The biggest constraint is no longer construction costs but workforce availability. Turner & Townsend says shortages of skilled labor—particularly mechanical, electrical, and plumbing (MEP) specialists critical for AI data centers—are becoming the primary driver of project costs worldwide. Around 71% of global markets report labor shortages, while 87% cite shortages in MEP trades, raising concerns that the industry may struggle to build AI infrastructure fast enough to meet accelerating demand.

The report also highlights how AI is creating a two-speed construction market. While demand for residential and commercial projects remains relatively subdued, contractors and suppliers are increasingly prioritizing higher-margin AI infrastructure, industrial, logistics, and renewable energy developments. At the same time, AI is beginning to influence how projects are delivered, with 66% of markets reporting that AI capabilities have become more important in tenders and client discussions over the past year.

Together, the findings illustrate how AI is not only driving demand for data centers but increasingly reshaping the economics, workforce requirements, and execution of global infrastructure projects.