AI boom could hit housing pipeline as worker shortage grows

Topic:Federal Government

The construction of data centres could have an impact on apprenticeships. (ABC News: Marcus Stimson)

In short:

Australia is falling short of the workers required to power both the nation's AI boom and housing targets.

The Powering Skills Organisation (PSO) is calling on urgent action to add thousands of skilled tradespeople to the workforce and address poaching across projects.

What's next?

The PSO is calling on the government to enforce first and second-year apprenticeship quotas on all major energy projects.

Australia lacks enough workers to build both houses and data centres in its pipeline, and new data shows the artificial intelligence boom will worsen this shortfall.

The Powering Skills Organisation (PSO), a government-established jobs and skills commission, has warned that already-high competition for workers has been accelerated.

The report, released on Wednesday, estimates Australia needs an additional 72,000 electricians, technicians and related tradespeople by 2030 to meet projected demand.

Last year, the same report forecast a shortage of 42,000 energy workers.

As is so often the case in Australia, the politics came down to a fight over energy.

A key driver of the widening gap is the rapid growth in data centre construction, expected to be worth about $150 billion by the end of the decade, according to Treasury.

PSO chief executive Anthea Middleton said the government commitment to build data centres is now competing with other aims, such as the Housing Accord target to build 1.2 million homes and the nation's renewables transition.

"We have multiple national priorities that are simultaneously competing for the same electricians, technicians and skilled trades workers," she told ABC.

"And we can see that this pressure is expected to persist over many years rather than follow a normal economic cycle."

Anthea Middleton says the government's commitment to data centres is now competing with other aims. (Supplied)

In March, the federal government outlined national expectations for data centre and AI infrastructure developers.

It urged them to address skills gaps by investing in local workers through apprenticeships and other training pathways.

There were about 162 operational data centres in the country as of March, with a further 130 proposed.

The data centre drive alone requires a further 13,000 energy trades workers, the report estimates.

The US tech giant wanted to meet with the NSW government earlier this year about locating up to five gigawatts of data centres in the state.

Dean Spicer is at the forefront of the AI push, with his Melbourne-based business building the electrical cables used in data centres.

He admits it is increasingly difficult to attract and retain staff, with employees being "snapped up" by data centre construction.

"It's devastating because you've got a real opportunity to grow your business, but in the sector that we're working in, often fixed-price, we're unable to compete with the rates and conditions being offered in that space," he told ABC.

"We've recently lost one of our team who've been with us for 12 years … some of the things they're doing to attract staff are mind-boggling."

Call for quotas to address apprenticeship 'poaching'

Electrical apprenticeship completion rates remain high at 70 per cent, as does demand for them, but businesses face significant pressure to offer the training.

Ms Middleton highlights that small and medium businesses bear the brunt of training apprentices, with large infrastructure projects then hiring people towards the end of their apprenticeship.

Housing construction is expected to struggle as AI data centres compete for skilled tradespeople. (ABC News: John Gunn)

She said a lack of guidelines to hire first- and second-year apprentices on all major projects has "enabled a system of poaching", as she called for quotas.

"I think we have an opportunity to leverage that investment to make sure that they are also investing in the Australian skills and employment outcomes for Australian workers," she said.

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