Data centers powered by AI drive need for skilled trades apprenticeship programs

A necessary household expense is set to influence the midterm discussion.

Why are parents sabotaging Gen Z’s job interviews?

New York University Stern Professor Susie Welch recently highlighted a growing trend where “helicopter parents” are getting involved in their Gen Z children’s job interviews and career choices. On “America’s Newsroom,” she discussed the desperation that drives this behavior.

In another context, it seems that the future of artificial intelligence might actually lean more on skilled tradespeople than on traditional programmers. Major tech companies like Alphabet, Microsoft, Meta, and Amazon are investing heavily in new AI data centers, expecting to spend around $700 billion this year alone. This figure doesn’t even cover grid upgrades or the costs associated with semiconductor production. However, the reality remains quite challenging. There simply isn’t a sufficient number of skilled workers ready to build the infrastructure that supports the AI economy.

Looking ahead, by 2030, the U.S. will need about 140,000 additional skilled workers—think electricians, HVAC technicians, welders, and construction personnel—to keep up with AI infrastructure demands. How can we possibly bridge that gap?

Southern state takes the lead in a rapidly growing industry

Perhaps the answer lies in Switzerland. Their apprenticeship system has fostered one of the world’s more innovative economies, providing young people with a straightforward path to technical careers. This could offer insights for the U.S. in developing a similar approach.

Switzerland allows students as young as 15 to engage in apprenticeships across various fields. These apprentices gain specific industry skills in the classroom while also getting hands-on experience at companies. It’s quite a popular system, with about 70% of Swiss youth enrolling in apprenticeships that span manufacturing, healthcare, banking, and beyond. What’s more, these apprenticeships don’t lead to dead ends; graduates can either continue in their profession or pursue higher education.

For companies in Switzerland, apprenticeships are often a wise investment, yielding an average internal rate of return of 7% to 10%. Many apprentices tend to stick with the organizations where they trained, making recruitment and training a more sustainable process.

Moreover, because these programs are largely driven by private companies, they are closely aligned with labor market needs, enabling swift adaptation to industry changes.

This model could be an answer to current workforce shortages in the U.S. I mean, really, the need for skilled tradespeople is only set to grow. For instance, Nvidia’s CEO Jensen Huang has suggested that those working on chip or AI factories could easily earn six-figure salaries. As higher education costs continue to rise, many young Americans are becoming more interested in trade schools and hands-on careers.

All hands on deck: The unlikely workforce for America’s rebuilding efforts

Not only do these trades offer higher salaries, but investing in Swiss-style apprenticeship programs could further fuel this trend. Some states are already embracing this approach.

For companies, these apprenticeships are often a sound investment, with an average internal rate of return of 7% to 10%.

Expanding educational programs

For example, Colorado’s CareerWise program, which takes cues from the Swiss model, gives students a chance to balance classroom learning with paid internships in sectors like advanced manufacturing and information technology. Other states are starting similar initiatives as employers seek ways to cultivate long-term talent.

Ultimately, the next phase of digital technology won’t just rely on software capabilities. It’s crucial to have skilled workers who can wire data centers and install electrical systems—those necessary hands that will build the physical framework of the AI economy. With decades of workforce development, Switzerland has set a precedent that America could really learn from.

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