By Avi Salzman
The AI boom was just getting past its last bottleneck. Now, another one is popping up -- electricians.
A year ago, a shortage of natural gas turbines was the biggest limiting factor behind the AI boom, because data centers couldn't build enough power plants to get electricity to those data centers. But turbine-makers have been ramping up production.
Today, a shortage of contractors with electrical expertise is the most pressing problem.
Rob Gaudette, CEO of power producer NRG, laments the shortage of "qualified construction crews. Because if you have a turbine and no humans, you just have a turbine."
GE Vernova, the global leader in turbines said last month that turbines "are really not the gating item" slowing down data centers, pointing instead to other factors like a lack of EPCs, or engineering, procurement, and construction firms. EPCs can mobilize hundreds of workers to build major infrastructure projects.
It is not a problem that can be solved instantly. The speed of the AI buildout is straining America's skilled electricity workforce. Over the next decade, America is expected to need an additional 81,000 electricians a year, the Bureau of Labor Statistics says, among the fastest growth rates of any profession.
By 2034, America is on track to have less than two electrical engineers for every megawatt of power capacity the country needs to add, down from seven in 2024, according to Ben Lowe, an energy expert at consultancy Roland Berger. "The fact of the matter is we just don't have enough people to do the work," he said.
The shortage has tech companies worried. Big tech players have no time to waste when it comes to the AI buildout. They're spending $700 billion this year alone to build out data centers and other major capital projects. Some of the tech giants are getting directly involved in training the next generation of electricians. Last year, Google said it would support a plan to train 100,000 new electricians and 30,000 apprentices, because of the shortage.
Having a good contractor on call is now a must-have for companies building power plants, and they are willing to pay up for them. NRG locked in a multi-project deal with Kiewit, a Nebraska-based EPC, to install GE Vernova turbines. "It's a three-party agreement," Gaudette said in an interview with Barron's.
Kiewit is privately held, but EPCs that are publicly traded have seen big benefits.
One major player is Quanta Services, whose shares have risen 130% in the past year, giving the company a market cap of $110 billion; five years ago it was a little-known mid-cap stock. Others include SOLV Energy, which went public in February and focuses on renewable installations. There's also Argan, which focuses on building natural gas plants and is up more than 300% in the past year. Legence, an EPC that spun out of Blackstone last year, has also soared, roughly tripling since its debut.
Quanta said last week that its backlog has ballooned to $48.5 billion, a 38% jump from last year. The company lifted its revenue and earnings guidance.
For investors, it's difficult to know whether it's still worth buying the stocks after their massive gains. Quanta now trades at 54 times its expected 2026 earnings per share, more than twice as expensive as the average large-cap stock.
Seth Kirkham, the chief investment officer for equities at investment firm Galvanize Climate, said in a recent interview that he still sees opportunities in some stocks.
"We are very excited about the EPC names," Kirkham said. Among his favorites is SOLV Energy, given the company's role in installing solar and battery systems, which are in particularly high demand today. SOLV trades at 34 times expected 2026 earnings.
He thinks others could also see more gains too.
"We believe many of these companies have the potential to exceed market expectations and are attractively valued," he added.
Write to Avi Salzman at avi.salzman@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 04, 2026 16:32 ET (20:32 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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