Construction Worker Shortages Delaying Projects Nationwide

Busy construction site for the Meta data center in Richland Parish

Washington, September 1, 2025

News Summary

Construction worker shortages across the U.S. are causing significant delays in apartment and data center projects, worsened by immigration enforcement actions. Nearly a third of construction firms report challenges in hiring, with over 90% struggling to fill open positions. This shortage impacts projects like Meta’s $10 billion data center in Louisiana, which is set to require substantial energy resources. Local officials are pushing for solutions, including funding for construction education and ensuring lawful worker entry into the industry.

Seattle, WA – Construction worker shortages across the United States are causing notable delays in apartment projects and data center developments. Recent immigration enforcement efforts are exacerbating these labor shortages, affecting nearly a third of construction firms nationwide, including those in Washington state.

According to a workforce survey conducted by the Associated General Contractors of America and the National Center for Construction Education and Research, 25% of construction firms in Washington report being impacted by immigration enforcement actions in the past six months. Nationally, 28% of surveyed firms indicated they were affected, whether directly or indirectly. Specifically, the survey revealed that 5% of firms encountered visits from immigration agents at job sites, while 10% noted that workers left or failed to appear due to these enforcement actions.

Furthermore, 20% of companies stated that their subcontractors experienced a loss of workers because of immigration issues. Overall, over 90% of contractors report challenges in filling open positions, which is contributing to significant project delays in the industry.

Construction officials are pushing for increased funding for construction education and advocating for lawful pathways for workers to enter the industry. Ken Simonson, the chief economist for the association, pointed out that workforce shortages are influencing construction projects, causing delays across various sectors. Nearly 1,400 firms participated in the 2025 Workforce Survey, marking the 13th annual report on workforce conditions in construction.

A major project affected by these conditions is Meta’s construction of a $10 billion data center in northeastern Louisiana, intended to support artificial intelligence operations and aimed at transforming the local economy. This data center will be the largest in the Western Hemisphere, to be situated on a 2,250-acre site in Richland Parish.

The data center is projected to require about twice as much electricity as the entire city of New Orleans on peak days. To address these energy demands, local utility Entergy seeks approval to construct three new gas-fired power plants at a cost exceeding $3 billion.

In an effort to facilitate the Meta project, Louisiana has granted a 20-year sales tax exemption to the tech giant, although concerns regarding the potential cost to the state remain. The center is expected to create approximately 5,000 temporary jobs during construction and around 500 permanent positions once it is operational.

Despite the economic opportunities, critics raise alarms about the potential impact on Louisiana’s power grid and electricity rates for consumers. The project has sparked a mixed response, with local political support countered by opposition from environmentalists and energy user groups worried about its impact on the energy market.

Since the announcement of the Meta project, Entergy’s stock has surged to record highs, indicating investor confidence in the infrastructure development spurred by the project. Meta has also committed to contributing to renewable energy resource development as part of their deal. Local officials emphasize the transformative potential of the data center for Richland Parish, which is recognized as one of Louisiana’s poorest regions.

Concerns remain, however, over the sustainability of the power supply and the reliability of the state’s grid noted in the context of the massive energy demands associated with the data center.

FAQ

What are the main reasons for the construction worker shortages?

Nationwide construction worker shortages are primarily attributed to immigration enforcement efforts and difficulties in filling open positions, leading to significant project delays.

How is immigration enforcement affecting construction projects?

Immigration enforcement has affected nearly 30% of construction firms in the US, resulting in lost workers and site inspections which contribute to project delays.

What is the scale of the Meta data center project in Louisiana?

The Meta data center is a $10 billion project located on a 2,250-acre site in Richland Parish and will require significant energy resources, approximately two times that of New Orleans.

Key Features of the Nationwide Construction Challenges

Feature Details
Construction Worker Shortage Over 90% of contractors report difficulty filling open positions.
Impact of Immigration Enforcement 28% of firms nationally are affected, with visits from ICE at job sites.
Meta Data Center Largest in the Western Hemisphere, requires twice the electricity of New Orleans.
Job Creation 5,000 temporary jobs during construction and 500 permanent positions.
Environmental Concerns Potential impacts on power grid and electricity rates raise local opposition.

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Additional Resources

STAFF HERE PHOENIX WRITER
Author: STAFF HERE PHOENIX WRITER

PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.

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