AI data center boom could stall US infrastructure projects
14 Dec 2025

The rapid growth of artificial intelligence (AI) data centers is likely to impact the progress of road, bridge, and other infrastructure projects in the US.

According to Bloomberg, state and local governments sold a record amount of debt for the second consecutive year in 2025.

Strategists expect another $600 billion in sales next year, with most funds going toward infrastructure development.

Private spending on data center construction matches transportation spending
Spending comparison

Census Bureau data shows that private spending on data center construction is at an annualized run rate of over $41 billion.

This is roughly equal to state and local government spending on transportation construction.

The competition for construction workers between these projects could further complicate matters, especially as the industry is already facing labor shortages due to retirements and immigration restrictions.

Autodesk CEO highlights impact of data center construction
Resource allocation

Andrew Anagnost, CEO of architecture and design software maker Autodesk, has emphasized the impact of data center construction on other projects.

He told Bloomberg that there's "absolutely no doubt" that this kind of construction "sucks resources from other projects."

Anagnost also predicted that many infrastructure projects may not progress as quickly as desired due to these resource allocation issues.