The wave of investment in AI and data center construction across the United States is reviving demand for the transportation business, particularly for flatbed and heavy-duty trucks, which need to move large equipment. However, experts warn businesses to prepare for the risk that the completion of these construction projects could lead to a sharp drop in transportation volume.
On September 6, 2569, CNBC reported that investment in rapidly expanding artificial intelligence (AI) infrastructure in the U.S. is not only creating demand for energy, land, and digital infrastructure, but also benefiting the trucking industry, one of the industries that is benefiting from the continued construction of data centers.
While the U.S. is currently engaged in intense debate over the cost of data centers for AI and the question of who will benefit from such investments, the transportation sector is one industry that has clearly been boosted by the expansion of AI.
Large data centers don't just appear out of nowhere in an empty space without a supporting supply chain. Many components, from heating, ventilation, and air conditioning (HVAC) systems, piping, and cabling to semiconductors, must be transported to the construction site, mostly by truck or by rail before being transferred to other trucks.
This momentum helped to support the transportation business, which was facing pressure from macroeconomic factors including the trade war and import tariffs, as well as soaring diesel prices. Diesel prices hit a record high of $5.85 per gallon last Friday, amid the impact of the Iran-Iran conflict.
Patrick Brennan, Senior Vice President of Cox Fleet, a provider of fleet management solutions, stated that under these circumstances, the growth of AI and data center construction activities present opportunities for transportation businesses. Although overall freight demand remains uncertain, AI is helping to stabilize the market.
Brennan stated that growth driven by investment in equipment—whether in data centers, defense projects, or semiconductor projects—naturally creates demand for goods.
However, the benefits of AI investment are not evenly distributed across all sectors of the trucking industry. Flatbed and heavy-haul trucks, which play a crucial role in transporting large data center equipment, have clearly benefited.
The demand for transporting data center-related materials and equipment continues to increase, reflected in both manufacturing indicators and the performance of some transportation companies. Meanwhile, the ratio of transport jobs to the number of trucks has also risen as the market's capacity to handle the increased workload becomes tight.
Brennan said the impact was most evident in the flatbed and heavy-duty truck markets, where spot freight rates hit multi-year highs last summer, while transport capacity in areas with significant construction projects was tight.
Furthermore, the selection of data center locations is often dependent on energy costs and land prices, resulting in many projects being situated in areas that are not traditional transportation hubs. This is consequently changing the routes used for trucking in the United States.
"This expansion is not only increasing the amount of work, but it's also changing transportation routes," Brennan said.
Large-scale construction projects also increase the demand for labor in transportation and fleet management, and this is not limited to truck drivers only.
Brennan stated that these projects require the relocation of large machinery, generators, transformers, cooling systems, construction materials, and related infrastructure, resulting in increased demand for CDL-licensed truck drivers, diesel engine technicians, transport vehicle maintenance specialists, and logistics personnel.
Meanwhile, the labor market for specialized positions is already experiencing a decline in applicants, forcing companies to spend more time recruiting, increase recruitment activities, and enhance their maintenance capabilities due to increased truck usage, or to add more vehicles to support these projects.
The growth of AI-driven transportation businesses isn't limited to large corporations. Jennifer Lockett, Freight Factoring Operations Manager at altLINE, a transportation finance services company, says smaller businesses are also getting more new work, but face cash flow challenges.
The data center construction project is creating new jobs for transportation companies, particularly those that transport large transformers and generators, as well as large quantities of concrete and construction materials.
The large size and specialized requirements of goods also create opportunities for transportation companies to expand their customer base and add new routes, while smaller companies may benefit from a more consistent volume of work.
However, handling increased workload may require the company to invest further in trucks, drivers, and equipment, putting pressure on cash flow, especially if the company takes on large clients and has to reserve funds for fuel, labor, and maintenance costs before receiving payment.
Therefore, businesses need increased working capital to support business expansion and rising costs, even though the overall picture reflects that data center construction is creating a wide range of new transportation activities.
Janelle Griffith, head of Global Logistics Practice at Marsh, a global risk management company, said that truck volumes and transportation routes are increasing significantly in Georgia and Texas.
“Many projects are located in rural areas,” Griffith said , citing a study that found 67% of planned data center projects are located in rural areas, and 39% of planned projects are located in areas where data centers are not currently available.
The impact, therefore, is not limited to transportation companies but also extends to gas stations, building material suppliers, warehouses, and related businesses throughout the supply chain.
Griffith views data centers as just one part of a larger AI ecosystem, serving as hubs that drive continuous activity to trucks, storage facilities, and warehouses.
While the AI trend is creating new opportunities for the transportation business, experts warn that businesses and communities should not rush into investing too much in expanding transportation infrastructure, as much of the demand is temporary and tied to the construction of data centers.
Kyle Roberts, vice president of Industrial & Logistics/Capital Markets at Newmark Mountain West, said that once the data center is completed, the number of trucks traveling into the area will decrease significantly.
He compared it to a warehouse or distribution center of approximately 200,000 square feet, with 80 loading docks and an average daily turnover of two times, which would handle significantly more truck traffic than a completed data center.
Furthermore, although some equipment can be transported by train, it ultimately still needs to be transported from the train station to the construction site by truck, thus maintaining the demand for trucks, even though the transportation distance is shorter.
Roberts stated that such short-distance shipping also supports the Less-than-Truckload (LTL) business, a market that has been weak for some time and was severely impacted by the bankruptcy of Yellow Trucking in 2567.
However, he warned that the volume of truck traffic to the data center would decrease "exceptionally" after the construction project is completed.
According to Khair Latinen, associate professor of finance at Wake Forest University , data centers differ from large retailer warehouses or distribution centers that handle physical product delivery because, once constructed, data centers require a relatively low level of logistical support.
Therefore, communities that are about to benefit from the growth of the trucking business should carefully consider how much infrastructure investment is needed and whether that demand will remain after the construction phase is complete.
However, in the short term, the rapidly expanding AI ecosystem allows transportation operators to continuously shift towards new projects.
Roberts stated that the large ecosystem surrounding data centers means that the various components create a demand for transportation, and this has a positive impact on the trucking business overall.
Source: www.cnbc.com
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