Ford CEO Farley: Labor Shortages Stall AI Data Center Expansion, Reshoring Efforts

Ford’s CEO, Jim Farley, highlighted a critical shortage of labor affecting the United States’ ambition in AI and data center expansion. As AI is projected to grow into a $4.8 trillion market by 2033, Farley emphasized that the country is at risk of falling short due to a lack of skilled workers essential for building and sustaining the necessary infrastructure.

Labor Shortages Impeding AI Progress

Farley shared his concerns during an interview with Axios in September 2025. He noted that despite governmental efforts to enhance factory jobs, ongoing recruitment challenges continue to plague the manufacturing sector. “How can we reshore all this stuff if we don’t have people to work there?” he asked.

The Essential Economy at Risk

The Ford CEO described the current labor crisis as detrimental to the U.S. economy, which heavily relies on blue-collar jobs contributing $12 trillion to the GDP, according to the Aspen Institute. He pointed out that while AI may eliminate many white-collar jobs, it will simultaneously create significant demand for skilled trades. However, the supply of qualified workers is lacking.

• Currently, the U.S. is short 600,000 factory workers.
• There is a deficit of 500,000 construction workers.
• Over the next three years, 400,000 auto technicians will be needed.

Farley attributed these shortages to an aging labor force and restrictive immigration policies that limit growth in the workforce. He believes that a lack of awareness about these issues exacerbates the problem.

AI Sector Labor Shortage

The labor deficit is acutely felt in the AI sector. Dame Dawn Childs, CEO of Pure Data Centres Group, stated that the booming demand for data centers is stymied by a shortage of skilled construction workers. A 2020 survey from the Uptime Institute found that nearly half of data center operators faced challenges in filling open positions—a dramatic increase from 38% in 2018.

Challenges Persisting Among Industry Leaders

A recent report by Deloitte in April 2025 indicated that 51% of U.S.-based power companies and data center executives regard the lack of skilled labor as a core challenge, with more than 60% identifying it as their top concern. Even major tech companies like Oracle are feeling the impact, pushing back deadlines for data center developments due to labor shortages and material deficits.

Future Outlook and Recommendations

As demand for computational data centers rises, projections indicate that global capital expenditure will reach $6.7 trillion by 2030. Hyperscalers, or large cloud service providers, alone are expected to invest $300 billion by 2025. Addressing the labor shortage will require comprehensive policy reform, including enhanced investment in vocational training and apprenticeship programs, according to Farley.

“If we are successful—when we are successful—we’ll take on bigger problems,” Farley stated. “Right now, the problems we’re trying to solve are pretty practical.” He emphasized the urgent need for skilled technicians across industries and expressed hope for a shift in mindset regarding the essential economy.