Building the AI economy: What it means for Canada’s construction workforce and public safety

In the Spring 2025 issue of WELD magazine, Deron Brown, President and COO of PCL Industrial Construction, explored how artificial intelligence is reshaping the built environment in his article, “Construction Outlook 2025: How the AI Revolution Will Influence What We Build and How We Build It.” (. .) While Brown’s insights focused on the opportunities and challenges facing the U.S. construction sector, many of the same dynamics are being felt in Canada.

From massive data centres and semiconductor fabrication plants to new energy infrastructure, the rise of AI is triggering a construction boom with far-reaching implications. In Canada, this transformation will require not only expanded workforce capacity, but also a renewed commitment to technical excellence and public safety. This is especially true in welding and joining, where CSA standards form the backbone of structural integrity. As the AI economy accelerates, Canada’s construction industry will be at the forefront of building the digital future.

The labour force of the future

Canada’s construction sector is facing a significant talent crunch. According to , by 2033, the industry must replace more than 263,000 retiring workers while adding 88,000 new positions to meet demand—yet projections show only 266,000 new entrants under 30. That leaves a potential shortfall of 85,500 workers.

The latest data from the forecasts a moderate shortage of welders and related machine operators between 2024 and 2033. These workers are an essential part of the construction labour force.�� During this period, 25,600 job openings are expected, with only 25,000 job seekers projected to enter the workforce.

This labour gap is particularly concerning given the AI economy’s appetite for infrastructure. The data centre market alone is expected to triple by 2029, reaching a market value of $9.04 billion and requiring a total capacity of 1,160 MW. Building these highly complex facilities—each demanding more energy, water, and computing density than their predecessors—requires specialized tradespeople, including welders certified to handle the demands of energy infrastructure, HVAC systems, and structural assemblies.

The role of welding in the AI economy

Welding and joining will play a critical role in delivering the infrastructure needed to support AI. Facilities such as data centres, microchip fabs, and clean energy installations rely on fabrication techniques that must meet stringent quality and safety standards. Canadian projects are governed by CSA standards such as CSA W47.1 (Fusion Welding of Steel), CSA W47.2 (Fusion Welding of Aluminum), and CSA W59 (Welded Steel Construction). These standards help ensure the safety, durability, and code compliance of welded structures. This is especially crucial in builds like power transmission facilities and semiconductor plants where even minor flaws can cause massive disruptions.

“As the demands of the AI economy increase, so too does the public’s reliance on the safety, quality, and regulatory compliance of built structures,” said Mark Fernandes, Manager of Engineering, Procurement and Construction (EPC) at ��APP��. “Standards like CSA W47.1 help ensure public safety, technical compliance, and regulatory integrity in everything from energy grids to digital infrastructure.”

Manufacturing, microchips, and environmental responsibility

The impact of AI extends beyond data storage. Canada’s manufacturing sector—already contributing 9.5% of the country’s GDP and 60% of its exported goods, while employing 1.79 people—is ramping up to meet demand, with projections estimating a value-added output of USD $151.8 billion by 2025 and an anticipated compound annual growth rate (CAGR) of 1.23% between 2025 and 2029*. Meanwhile, Canada’s semiconductor industry, backed by a , is growing rapidly, with over 500 companies active in the space.

Yet with growth comes responsibility. Microchip manufacturing requires enormous volumes of ultrapure water and produces wastewater contaminated with substances like per- and polyfluoroalkyl substances (PFAS), which are under tightening federal regulation. Sustainable water infrastructure—often involving custom welded systems for filtration, reuse, and discharge—will be essential to ensuring compliance and community safety.

Building the backbone of a smarter future

Clean energy projects are also expanding in step with AI's energy demands. Canada added over 2.3 GW of new renewable capacity in 2023 alone. As solar, wind, and energy storage continue to rise, skilled welders will be needed to fabricate towers, mounts, pressure vessels, and pipe systems, all to CSA-certified standards. With Small Modular Reactors (SMR) also gaining interest among tech companies, the construction workforce must be ready to respond with both technical ability and deep awareness of safety-critical fabrication.

The construction industry will be a key player in building a future driven by the AI economy. To succeed, industry, government, and other stakeholders must work together to prioritize workforce development, uphold robust technical standards, and commit to sustainable practices that support innovation and public trust.

��APP��
May 2025

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Notes:��
* Projections may change due to the impacts of global trade uncertainty.