I recently spoke with an experienced mechanical Project Manager who had been offered a base salary so far above what I normally expect that I did a double take. I’m talking more than $70,000 above an already decent salary. Great opportunity for him. Hard to argue with the money. But it raised a question I’m hearing more and more lately. Is that now his market rate?
I don’t think it is.
Australia’s data-centre boom is creating some fantastic opportunities for people in HVAC, Building Services and the wider energy sector. Westpac estimates the investment pipeline will exceed $155 billion, while Powering Skills Organisation says another 13,000 energy trades workers will be needed specifically for data centres by 2030. That is a lot of capital chasing a workforce that was already difficult to find.
In Melbourne, experienced mechanical Project Managers working for Tier 2 contractors would typically sit around $150,000 to $170,000 base, depending on experience. Bigger Tier 1 businesses can push towards $200,000. Then data-centre work enters the conversation and some of the offers are in a different league.
That doesn’t necessarily mean somebody who was worth $160,000 on Monday suddenly became a $250,000 Project Manager on Tuesday. It means one employer may be prepared to pay a significant premium because they need that person’s experience now. There’s a difference between market rate and scarcity pricing and I think that difference is becoming increasingly important.
Data centres aren’t recruiting from a secret stash of engineers and tradespeople nobody else knew existed. They’re recruiting project managers, refrigeration mechanics, engineers, electricians, commissioning specialists and controls people from the same market as every other mechanical contractor. The difference is, not everyone has the same budget.
I’m seeing a similar thing with refrigeration mechanics. Some of the data-centre roles are paying very well, and rightly so. These are 24/7 critical environments and some technicians I’ve spoken with are working four-on, four-off rosters rotating between days and nights. The money is attractive. The lifestyle isn’t for everyone.
Several have told me they find the pattern draining. So when someone compares a data-centre salary with a Monday-to-Friday commercial service role, they’re not really comparing like with like. Part of that premium is paying for the roster, the responsibility and the environment that comes with it.
None of this is criticism of the data-centre sector. Quite the opposite. It is bringing serious investment into Australia, creating new career paths and giving skilled people opportunities they may not have had a few years ago. TMR wants to be part of that growth.
But I also recruit for the businesses competing with it and that is where things get interesting.
If your Project Manager gets offered another $60,000 or $80,000 to leave, do you match it? Maybe. But then what happens to the equally experienced PM sitting next to them earning $155,000? What does the Construction Manager above them now expect? One decision can very quickly become a salary review for half the business, particularly now employees are free to discuss their pay.
For contractors working on tightly priced projects, there is only so far salaries can move before margins start getting squeezed. Holding the line isn’t easy either. Good people have choices and experienced mechanical people are already bloody difficult to replace.
So I don’t think the answer is for every HVAC and Building Services company to try to outbid the data-centre market. In many cases, they can’t. More importantly, they may not need to.
If you cannot offer the highest salary in the market, you need to be very clear about what you can offer instead. Predictable hours, no rotating nights, more autonomy, better variety, shorter travel, genuine progression, direct access to decision-makers and the chance to run your own projects rather than become one small part of a very large one.
None of that excuses underpaying people. Salary still has to be competitive. But competitive and highest are not the same thing.
The data-centre boom is good news for our industry. The reality check is that a sector with enormous investment, urgent delivery schedules and a limited supply of experienced people can pay a premium, but that premium does not automatically become the new salary benchmark for everyone else.
A $250,000 offer can be completely real. That doesn’t mean every $170,000 job just became a $250,000 job.
And right now, knowing the difference might be one of the most important salary conversations employers have. Talk to TMR.
