Data center construction spending in the United States reached a seasonally adjusted annual rate of $59.3 billion in May 2026, according to data from the U.S. Census Bureau. The figure represents a 23% increase from one year earlier and underscores the unprecedented scale of the digital infrastructure buildout now underway.
Data centers now account for approximately 8.0% of all private nonresidential construction spending, a share that has grown rapidly as AI and cloud computing demand has accelerated. In April 2026, Census Bureau data showed that data center construction surpassed general office construction for the first time, reaching a $50.7 billion annualized rate.
Construction Industry Response
According to the Associated General Contractors of America (AGC), 57% of contractors expect the available dollar value of data center projects in 2026 to exceed 2025 levels. The construction industry has been a major beneficiary of the data center boom, with data centers becoming one of the fastest-growing segments of nonresidential construction.
Data center construction also supports high-paying career pathways. As of March 2026, average hourly earnings in construction were up 5.0% from one year earlier, compared with 3.4% across the private sector. Construction workers earned 20.4% more, on average, than private-sector workers overall.
Economic Ripple Effects
The economic benefits of data center construction extend well beyond the project site. These projects require contractors, suppliers, manufacturers, engineers, transportation providers, and other service firms throughout the economy. Direct impacts include construction jobs, wages, materials, and equipment purchases; indirect impacts include increased demand for upstream suppliers including transformers, electrical components, cooling systems, and building materials.
A Virginia JLARC study found that data centers supported nearly 74,000 jobs annually — including construction and ripple effects — and generated $9.1 billion in annual economic contribution to Virginia's GDP. The data center industry was estimated to contribute $5.5 billion in labor income to Virginia's economy annually.
Rising Construction Costs
The rapid growth in data center construction demand is also pushing building costs sharply upward. Median construction costs have increased approximately 38% from $415 per square foot in 2025 to approximately $570 per square foot in 2026, according to industry data. Rising costs reflect competition for labor, materials, and specialized equipment.
In June 2026 alone, U.S. companies spent over $22 billion on data center construction and broke ground on 23 new construction sites — the second-highest monthly total on record, behind only the $25.5 billion spent in January 2026.
