Key facts
- Boot Barn is seeing increased demand for work boots from data-center construction projects.
- CEO John Hazen stated that data center construction is driving bulk workwear orders.
- The company is adjusting its inventory based on the stages of nearby data center projects.
- Brunt Workwear is also experiencing strong demand from data-center construction in California and Texas.
The burgeoning artificial intelligence industry's infrastructure buildout is creating unexpected demand for traditional workwear, according to Boot Barn. The U.S. retailer, known for its western and work boots, is experiencing a notable increase in bulk orders for data center construction projects.
CEO John Hazen explained that the company is adapting its inventory strategy by tracking local data center development to ensure it stocks the appropriate types of boots for construction workers. This trend underscores how the massive AI spending surge is creating ripple effects across various sectors of the economy, extending far beyond the technology hubs.
Boot Barn has a network of nearly 600 stores and has observed consistent sales growth in its work boot segment for the past five quarters. Similarly, workwear manufacturer Brunt Workwear is reporting robust demand, particularly from states like California and Texas, which are attracting significant AI infrastructure investments. Brunt Workwear's CEO, Eric Girouard, indicated the company is working to meet this demand.
The U.S. construction sector has seen a rise in employment this year, partly fueled by the need for labor to build data centers. The Labor Department reported that construction added 22,000 jobs in August. This growing appetite for workwear illustrates the substantial scale of the ongoing data center construction in the U.S., even as discussions about the pace of AI development and the environmental impact of these facilities continue.