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Construction Worker Shortages Impacting Major Projects

Busy construction site for the Meta data center in Richland Parish

News Summary

Nationwide construction worker shortages and increased immigration enforcement are causing significant delays in apartment and data center developments. Recent surveys indicate that nearly a third of construction firms have felt adverse effects from these immigration actions, with many firms struggling to fill positions. Meanwhile, Meta’s $10 billion data center project in Louisiana faces criticism over energy demands and economic implications.

Washington, D.C. — Nationwide construction worker shortages, coupled with intensified immigration enforcement, are causing substantial delays in apartment projects and data center developments across the United States. Nearly a third of construction firms have reported experiencing negative impacts from recent immigration actions, underscoring the urgent need for a revitalized labor force in the industry.

A workforce survey conducted by the Associated General Contractors of America in collaboration with the National Center for Construction Education and Research highlighted that 25% of construction firms in Washington state have felt the weight of immigration enforcement activities over the last six months. On a broader scale, 28% of firms across the nation have reported disruptions, either directly or indirectly, related to these enforcement efforts during the same timeframe.

The survey revealed that 5% of firms encountered visits from immigration agents at their job sites, while 10% noted that their workers either left or failed to show up due to the recent immigration actions. Furthermore, 20% of the construction firms stated that their subcontractors faced worker losses as a result of these enforcement measures.

In light of these challenges, over 90% of contractors across the nation are experiencing significant difficulties in filling open positions, contributing further to project delays. Ken Simonson, the association’s chief economist, emphasized that these workforce shortages are severely impacting construction timelines across various sectors.

Approximately 1,400 firms participated in the 2025 Workforce Survey, marking the 13th annual iteration of this significant assessment. Amid these labor shortages, construction officials are advocating for increased funding toward construction education and the establishment of lawful pathways for workers to enter the industry.

At the same time, in northeastern Louisiana, Meta is pursuing the construction of a $10 billion data center, expected to support its artificial intelligence operations and potentially reshape the local economy. This data center is set to become the largest in the Western Hemisphere, located on a 2,250-acre site in Richland Parish.

The facility is projected to demand roughly twice the amount of electricity that the city of New Orleans uses on a peak day. To support this significant energy requirement, local utility Entergy is seeking approval to construct three new gas-fired power plants, with an investment exceeding $3 billion.

In an effort to incentivize Meta’s project, Louisiana has offered a 20-year sales tax exemption, though concerns persist about the associated costs to the taxpayer. Construction of the data center is anticipated to generate approximately 5,000 temporary jobs, alongside around 500 permanent positions upon its completion.

Despite the economic potential, critics argue that the data center may jeopardize the reliability of Louisiana’s power grid and could lead to increased electricity rates for consumers. The project has elicited mixed reactions, garnering support from some local political factions while facing opposition from environmental groups and energy users worried about its implications for the energy market.

Following the announcement of the Meta project, Entergy’s stock reached record highs, indicating optimistic forecasts for continued investment in the infrastructure sector. Part of the agreement includes Meta’s commitment to contribute to the development of renewable energy resources.

Local officials are highlighting the transformative economic impact the development could have on Richland Parish, a region known for its high poverty rates. However, the project’s vast scale and extensive energy demands have raised critical concerns regarding the sustainable supply of power and the reliability of the state’s grid.

Deeper Dive: News & Info About This Topic

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Additional Resources

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LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana

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