Jensen Huang, the CEO of AI chip giant Nvidia (NVDA), says that the U.S. AI data center buildout could create roughly one million jobs as companies spend heavily on computing and energy infrastructure. At a White House event on Tuesday, Huang said that the investment wave could help the U.S. reindustrialize for the first time in about 50 years. He expects much of the job creation to come from skilled trades because data centers require far more than chips and servers.

This matters because the U.S. already has a shortage of the workers needed to build that infrastructure. The Alliance for America's Skilled Trades estimates that the country will need to fill about 1.7 million skilled-trade openings each year through 2035. However, current training programs produce only about 55 workers for every 100 that are needed.

Those jobs include electricians and construction workers. Pipe fitters are another important part of the buildout because data centers require large cooling systems.

Huang said that the U.S. is adding roughly 10 to 20 gigawatts of AI infrastructure each year. Therefore, more data centers also require additional power generation and electrical infrastructure.

AI Spending Is Creating Demand Outside the Tech Industry

That helps explain why large technology companies are paying more attention to skilled trades. In fact, Nvidia is joining the Alliance for America's Skilled Trades this week. Social media giant Meta Platforms (META) is joining as well, while software giant Microsoft (MSFT) will also participate.

The initiative was launched by asset manager BlackRock (BLK) and other major companies to help increase the number of trained trade workers.

BlackRock has separately committed $100 million through its Future Builders program to improve skilled-trades training. The firm says that data centers and power infrastructure are creating growing demand for electricians and other workers.

Tesla (TSLA) CEO Elon Musk also pointed to electricity as a major part of the AI expansion. He said that the U.S. needs to increase energy supply along with chip production and noted that China currently generates roughly three times as much electricity.

Is NVDA Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 31 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $324.32 per share implies 41% upside potential. (See NVDA Stock Forecast).