Data center construction has become an increasingly important component of US private nonresidential construction, supported by rising demand for artificial intelligence, cloud computing, and digital infrastructure. As investment in these technologies expands, data center construction is experiencing growth that stands in sharp contrast to trends in the broader construction market.
To reflect this shift, ITR Economics is adding US Private Data Center Construction to our Trends Report™. In this monthly report, we provide commentary, forecasts, and practical business advice regarding approximately 40 key economic benchmarks, leading indicators, and markets.
While overall private nonresidential construction activity has faced headwinds, data center construction has demonstrated substantial growth. As of September 2026, US Private Data Center Construction increased 44.8% year-over-year, based on a 12-month moving total. Over the same period, overall US Private Nonresidential Construction declined approximately 4.0%. This difference illustrates how investment trends can vary significantly across construction segments. Data center construction is benefiting from the structural shifts we are experiencing in technology and infrastructure demand, even as other areas of private construction experience slower growth or contraction stemming from headwinds like high interest rates and slower economic growth.
Data center expansion also has implications for industries beyond construction. The increased development of data centers generates demand for electrical equipment, power infrastructure, cooling systems, engineering services, and construction materials. As a result, changes in data center investment can influence business conditions across a range of related industries. Even those industries that do not benefit from the trend can be impacted as they seek to compete with data center-related businesses for the same labor and construction materials.
Although recent growth has been substantial, the pace of expansion will not remain consistent. Rising construction costs, electricity availability, financing conditions, and infrastructure limitations could influence future investment decisions. These factors make it important to distinguish between the sector's longer-term growth potential and the shorter-term fluctuations that may occur along the way. Monitoring data center construction can help businesses assess changing investment patterns and understand how demand may evolve across related industries. For companies involved in construction, manufacturing, or infrastructure development, shifts in this sector may have implications for production planning, capacity utilization, and capital investment.
The addition of US Private Data Center Construction reflects the sector's growing significance within the US economy and its relevance to a broad range of industries. By including this forecast in the Trends Report™, we will be able to provide subscribers with more visibility into the direction of data center construction activity as the markets.