As the world focuses on expanding the role of electricity in global energy use, a recent gathering at the COP31 climate talks in Antalya, Türkiye, highlighted ambitious plans to increase electricity’s share to 35% by 2035. In this context, the shifting dynamics of energy employment in the United States present a mixed picture, with jobs in clean energy declining while demand in data centers surges.
In 2025, U.S. clean energy employment experienced its first decline since the pandemic, losing 36,949 jobs and settling at about 3.52 million, according to a report by E2, a nonpartisan business group. This downturn contrasts sharply with the tight labor conditions reported by construction firms working on data centers, suggesting a labor shift within the energy sector that is not entirely supported by available data.
Projects for data centers typically require a different blend of trades and operate on their own timelines, leaving utilities and manufacturers competing for workers in a market that paradoxically faces both an exodus and a shortage of skilled labor.
Clean Energy Jobs Take a Hit After Years of Growth
Analysis from E2 reveals that clean energy employment decreased across 35 states, with California losing nearly 21,000 jobs. Conversely, Florida saw a gain of about 3,800 jobs. “America’s clean energy jobs boom didn’t just slow in 2025,” observed Michael Timberlake, E2’s director of research. “It went into reverse.”
The Department of Energy’s (DOE) 2026 U.S. Energy and Employment Report corroborated this trend, noting a 1% drop in total energy employment, translating to roughly 86,000 fewer jobs. The largest segment, energy efficiency, saw a reduction of about 21,400 workers, influenced partly by policy changes in 2025.
Data Centers: A Growing Niche Within Energy Efficiency
While overall clean energy jobs declined, a small category within energy efficiency related to certified data center equipment saw an increase of about 1,100 workers in 2025, marking a 33% growth since 2022. DOE attributes this rise to a more than 30% increase in data center construction activities.
However, this category represents only a fraction of data center jobs, and neither DOE nor E2 tracks the career paths of individual workers, leaving it unclear whether former clean energy workers are transitioning to data center roles.
Increased Competition Among Contractors
A survey by the Associated General Contractors of America (AGC) and NCCER revealed that 28% of respondents had worked on data centers in the past year, with 58% citing increased competition for skilled workers and 49% reporting heightened wage pressures.
“The need for people to work on new data centers is keeping labor conditions tight” even as “demand for many other types of projects remains relatively soft,” said Ken Simonson, AGC’s chief economist.
Among all surveyed firms, 42% faced project delays due to worker shortages, while half reported candidates lacked necessary skills or certifications. The scarcity of skilled contractors is shifting project schedule risks onto owners, as noted in a report by Environment + Energy Leader.
According to Indeed’s Hiring Lab, data center job postings have more than doubled over two years, accounting for about 6 of every 1,000 U.S. listings, while overall listings fell 12%. A quarter of these openings were for installation and maintenance roles, offering median pay 42% higher than similar jobs elsewhere.
Electrification Demands Similar Skill Sets
Globally, the shortage of skilled workers echoes in reports from the International Energy Agency (IEA), with more than half of surveyed companies, unions, and training institutions citing critical hiring bottlenecks in roles like electricians, pipefitters, and line workers. In advanced economies, the IEA found 2.4 energy workers nearing retirement for every new entrant under 25, highlighting a looming skills gap.
During the COP31 talks, Dario Liguti of the United Nations Economic Commission for Europe highlighted the need to improve both the quantity and quality of grid connections, which involves the same workforce that U.S. data center developers are seeking.
Barriers to Workforce Mobility
Data center hiring in the U.S. is concentrated in regions like Columbus, Ohio; Jackson, Mississippi; and Reno, Nevada. Meanwhile, E2 reported the largest job losses in California. Moving from a solar installer role in California to an electrician position in Ohio involves significant geographical and licensing challenges.
Licensing requirements vary by state, and workers may need additional credentials to transition to data center roles. Companies are addressing this by establishing training pipelines before projects commence, often through partnerships with apprenticeship programs and local colleges.
Distinct Needs for Construction and Operation Staff
Data centers require a sizable construction workforce initially and a smaller operational team once operational. The maintenance workforce is expanding more slowly than the equipment it services, as reported by Environment + Energy Leader. While construction workers often move from project to project, the transition to ongoing operational roles remains less clear. DOE’s upcoming energy employment report will shed light on whether data center-related roles continue to expand as other areas of energy efficiency contract.
Original Story at www.environmentenergyleader.com