Data Center Construction Spending Reaches Record $85 Billion Annual Pace

Record Spending in Data Center Construction

Private data center construction spending has reached an annual pace of $84.95 billion, marking a 73% increase year-over-year from $49.05 billion. This figure represents a record annual pace for data center buildouts, with growth rates not seen since April 2025.

The Census Bureau's August construction spending tables indicate that this spending excludes the value of racks or servers within data centers, focusing solely on the physical infrastructure.

Dominance in Private Office Construction

Data center construction now accounts for approximately 63% of all private office construction, up from 47% a year prior. This shift has created a $39.1 billion gap between general office and data center construction spending, the widest since January 2014.

General office construction has seen a decline, down 9.7% year-over-year and 34.8% since January 2023, while data center construction has consistently outpaced it since September 2025.

Broader Impact on Nonresidential Construction

The growth in data center construction is a significant driver for the broader private nonresidential construction sector. Of the $8.0 billion monthly rise in private nonresidential spending, $5.9 billion (74%) was attributed to data centers.

Excluding data centers, private nonresidential construction would have decreased by 5.9% year-over-year. This trend suggests that data center projects are a primary contributor to the construction industry's current growth, alongside power construction which is up 9.7% year-over-year due to electricity demands from data centers.