Data Centers Drive Nonresidential Construction Spending in September - NJBIA
National nonresidential construction spending increased 0.6% in September, mainly on the strength of data center development, according to an Associated Builders and Contractors (ABC) analysis of data published on Monday by the U.S. Census Bureau.
"Nonresidential construction spending grew for the sixth consecutive month in September," said ABC Chief Economist Anirban Basu on Monday. "As has been the case for several months, data centers accounted for virtually all of that increase."
Basu noted that spending on the data center category construction jumped 8.6% in September and has grown at an annualized rate of 217% since May.
"Given the recent rise in treasury yields and ongoing materials price escalation, momentum will remain narrowly concentrated in artificial intelligence-related segments over the next several months," said Basu. "While contractors remain busy in the aggregate, according to ABC’s Construction Backlog Indicator, current market dynamics will continue to favor larger contractors who are far more likely to be involved in data center and power projects."
Meanwhile, residential construction spending declined -5.4% for the month of September and is down -8.8% compared to September of 2025, according to the ABC.
On a monthly basis, construction spending increased in half of the 16 nonresidential categories, with notable gains in data centers, power, and telecommunications.