The Healey-Driscoll administration's plan to require project labor agreements for data center construction in Massachusetts would effectively limit the work to unionized workers, a move that critics say will exclude most of the state's construction workforce and drive up costs.
Greg Beeman, president of the Massachusetts chapter of Associated Builders and Contractors, said the state's framework would let only a small slice of the industry benefit from what he called a "bonanza" for construction. "While building data centers is a controversial topic, it is undoubtedly a huge opportunity for the construction industry," Beeman said. "Unfortunately, under the Healey-Driscoll administration's framework for data center construction in Massachusetts, the benefits of these projects would accrue only to a small slice of the industry."
Union-only requirement draws criticism
The plan calls for work to be done under a project labor agreement, which requires labor to come solely through construction unions. According to Beeman, that means only the 17.3 percent of Massachusetts construction workers who belong to a union could participate. "You don't need to be an economist to know that less competition means higher costs," he said.
Beeman noted that Democratic governors in other states have rejected similar mandates. Governor Janet Mills of Maine and Governor Gavin Newsom of California both vetoed bills that would have imposed project labor agreements on state projects. For construction professionals managing large-scale data center builds, such policies directly affect workforce availability and project budgets. AI Learning Path for Project Managers offers tools that can help with scheduling and cost control in complex projects like these.
Impact on minority- and women-owned businesses
Beeman argued the plan would also exclude most minority- and women-owned construction companies. According to data from the state Division of Capital Asset Management and Maintenance, 87.5 percent of minority-run business enterprises and 72 percent of women-run business enterprises are nonunion. "The data suggest that the plan would also exclude most women- and minority-owned construction companies," he said.
Calls for an inclusive approach
Beeman urged the state to undertake a transparent process to develop a sound approach to data center construction. "The resulting plan should treat all qualified construction workers equitably," he said. The construction industry has a major stake in how these projects are structured, and many firms are looking at technology to improve efficiency. Professionals can explore AI for Real Estate & Construction to see how digital tools are reshaping project delivery.
Why this matters for real estate and construction professionals
Data center construction is a multi-billion-dollar opportunity, but policy decisions on project labor agreements will determine which contractors and workers get access to those jobs. For real estate developers and construction firms, the outcome in Massachusetts could set a precedent for other states. Firms that want to compete on these projects need to understand the regulatory landscape and consider how technology can help them manage labor constraints and bid competitively.
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