Australia’s rapid expansion of artificial intelligence infrastructure could intensify an existing shortage of skilled tradespeople, putting pressure on the country’s ability to deliver new homes and major energy projects.

The Powering Skills Organisation (PSO), a government-established jobs and skills body, estimates Australia could need an additional 72,000 electricians, technicians and other skilled workers by 2030 as demand rises across multiple industries.

The projected shortage is significantly higher than last year’s estimate of 42,000 additional energy workers, highlighting how quickly demand for skilled labour is increasing.

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Industry Calls for More Apprentices to Meet Future Demand

Data Centre Growth Adds to Skilled Worker Pressure

A major factor behind the growing workforce gap is the rapid expansion of data centres needed to support AI and digital services.

Australia’s data centre industry could be worth around $150 billion by the end of the decade, according to Treasury estimates. There were around 162 operational data centres in Australia as of March, while another 130 projects had been proposed.

The PSO estimates that the data centre expansion alone could require approximately 13,000 additional energy-related tradespeople.

This is creating competition for workers who are also needed for housing construction, renewable energy projects and other infrastructure developments.

PSO chief executive Anthea Middleton said several national priorities are now competing for the same pool of electricians, technicians and skilled tradespeople.

She warned that the pressure is unlikely to be temporary, with labour shortages expected to continue as major projects move forward simultaneously.

Housing Construction Could Face Further Delays

Australia is already under pressure to increase housing supply, with the federal government targeting the construction of 1.2 million homes under the Housing Accord.

However, the growing demand for workers from AI-related infrastructure could make that target more difficult to achieve.

Builders and contractors are increasingly competing with large data centre projects that can offer attractive wages and employment conditions. Smaller businesses can find it particularly difficult to retain experienced workers after spending years training them.

Electrical contractor Dean Spicer said workers were being attracted away from smaller businesses by the rates and conditions available on major data centre projects.

The situation could make it harder for housing projects to secure enough qualified workers at a time when Australia is already facing a shortage of construction labour.

Industry Calls for More Apprenticeship Requirements

The PSO is urging the government to strengthen apprenticeship requirements on major infrastructure projects.

One proposal is to require large energy and infrastructure developments to employ first- and second-year apprentices, helping ensure that major projects contribute directly to the future skilled workforce.

Industry representatives argue that smaller contractors often carry much of the financial and training burden of apprentices, only to see those workers move to large projects once they become more experienced.

Stewart Joyce, chief executive of the National Electrical Communications Association, said businesses that invest heavily in training apprentices could need greater support when workers later move to major projects.

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Australia Needs a Coordinated Workforce Strategy

The government has already introduced measures aimed at increasing the number of workers entering energy-related trades. A clean energy apprenticeship program launched in 2023 provided incentives of up to $10,000 for eligible full-time traineeships.

More than 26,000 Australians had started apprenticeships in areas including electrical work, solar, batteries and automotive trades by July.

However, industry leaders say significantly more workers will be required if Australia wants to build homes, data centres, renewable energy infrastructure and other major projects at the same time.

The growing AI economy could therefore create thousands of new employment opportunities for electricians, technicians and other skilled professionals. At the same time, without sufficient workforce planning and training, the competition for workers could slow Australia’s housing and infrastructure pipeline.

The industry is calling for government, employers and major project developers to coordinate workforce planning, expand apprenticeship opportunities and ensure that investment in AI infrastructure also contributes to building Australia’s future skilled workforce.