Google To Train 25,000 Veterans in Skilled Construction Trades Amid Data Center Boom

The charitable arm of Google is providing a "seven-figure" commitment to train 25,000 new skilled trades workers amid the shortage of construction workers.

Google.org will support the Home Builders Institute, Hiring Our Heroes, and Student Veterans of America to offer pre-apprenticeships, career coaching, and job placement work. It could be the first step in a continuing relationship, Ed Brady, CEO of the Home Builders Institute, tells Realtor.com®. His organization is getting $1 million from Google.

Google is one of the major customers of the nationwide data center buildout, which has been at times controversial. McKinsey estimates the industry will pour $7 trillion into infrastructure by 2030. Experts say that will create major demand for skilled trades workers. The homebuilding industry already has a shortage of construction skills, but Brady says the commitment will help the whole building world.

"I think it gives validity to high tech that this is a major issue in this country," Brady tells Realtor.com. "We need skilled labor. Helping this population of veterans is really impactful, and it promotes the idea that the residential construction business is an economic driver."

Google said in a release that the commitment will it build out its data center network. However, the ongoing shortage of skilled workers impacts all kinds of construction, including residential.

"Currently there are hundreds of thousands of skilled trade roles open across the U.S. just waiting to be filled," says Tim Chadwick, Google Data Center Operations Area lead for Ohio and Indiana. "These are jobs like master electrician, lead pipefitter, and project manager—high-growth careers that offer long-term financial stability."

Brady says bringing more electricians into the business will benefit all sectors of construction. Some specialists, especially in the electrical trades, are being drawn into data center and industrial work, and can contribute to shortfalls in homebuilding.

Skilled trades needs

The home construction business has had a severe shortage of workers for years. The Home Builders Institute estimates the industry needs 700,000 additional workers a year to keep pace with demand.

The Associated Builders and Contractors, in its own research, estimates the nation needs a net 349,000 new workers to meed demand this year, and another 456,000 net new workers next year. That's because of a pickup in construction spending, with every $1 billion spent on building translating to 3,450 new construction jobs.

“Failing to do so will worsen labor shortages, especially in certain occupations and regions, placing further upward pressure on labor costs," ABC Chief Economist Anirban Basu said in a statement.

Without those workers, construction projects take longer, timelines become more unpredictable, and construction costs rise. HBI estimates the skilled-trades construction worker shortage costs the nation $10.8 billion a year.

More than half of kitchen and bath contractors told the National Kitchen & Bath Association that they were turning down jobs because they don't have enough workers. And Bill Darcy, global president and CEO of NKBA, said the number of contractors with manpower shortages is at an all-time high.

“Many businesses want to engage with students, but they often lack the resources to create programs," Darcy said. "Making it easier for businesses to get involved through ready-made programs and training materials can help turn that interest into action.”

Many groups, HBI included, have called for more resources and emphasis on construction careers. These jobs, many of which don't require a college degree, can lead to lifelong work.

"It's validation that what we're doing matters," Brady says.