Data Centers Drive U.S. Nonresidential Construction Growth as Other Sectors Slow
AEC industry
U.S. private nonresidential construction spending rose in September, sustained largely by strong increases in data centers and power infrastructure while other commercial building categories contracted.
According to U.S. Census Bureau data and analyses by the Associated Builders and Contractors (ABC) and the Associated General Contractors of America (AGC), U.S. private nonresidential construction spending increased 1.1% month over month in September. Spending on data centers surged 8.6% from August, maintaining a 217% annualized growth rate since May. Economists noted that data centers and related power projects drove nearly all recent gains, masking widespread cutbacks across other commercial categories.
Key takeaways
- U.S. private nonresidential construction spending rose 1.1% in September, with data center spending jumping 8.6% month over month.
- Data center construction spending has expanded at a 217% annualized rate since May and is up 90% year over year.
- Combined spending on all other private nonresidential categories fell 7.8% over the past year as data centers and power projects sustained headline growth.
- Industry economists noted that heavy demand for AI-related facilities is adding pressure to construction supply chains and material costs.
Source:Construction Dive Read the original ↗
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