Market Snapshot: Data Center Construction

Market Snapshot: Data Center Construction

Weekly market intelligence for AE and environmental industry leaders.

Beyond powering the artificial intelligence revolution, data centers have also propelled nonresidential construction spending over the past year.

While nonresidential construction barely increased by 0.3% between April 2025 and April 2026, MarketWatch reported last week that data center construction soared by 28% over the same time frame to a seasonally adjusted annual rate of $50.7 billion. That level of construction spending nearly matches that on sewage and waste disposal projects and is twice as high as lodging construction spending, according to the U.S. Census Bureau.

According to a Wall Street Journal article last week, capital expenditures by Microsoft, Alphabet, Meta Platforms, and Amazon totaled $410 billion in 2025 and are expected to surpass a staggering $670 billion this year.

The newspaper also reported, however, that data center projects are falling far behind schedule due to supply-chain bottlenecks, community opposition, permitting hurdles, and power supply availability. With grid operators and power companies increasingly raising concerns at connecting data centers to their systems, project owners are turning to developing their own power generation sources—including on-site gas generation and even nuclear power. 

A JPMorgan analysis from May reported that construction on 60% of data center capacity scheduled for completion in 2027 has yet to begun and another 7% is delayed. So far, the timeline-stretching hasn’t impacted the spending bonanza, but it bears watching for firms working in the sector.

For more insights on industry backlogs or questions about our market intelligence and research services, contact Rafael Barbosa.