Data center construction spending climbs 8.6% in September

Data center construction spending rose 8.6% from August to September, according to Associated Builders and Contractors figures reported by Construction Dive. Spending has grown at a 217% annualized rate since May.

The gain kept total nonresidential construction spending positive for a sixth straight month after a fifth consecutive advance in August, as Private Wealth Daily previously reported. Over the past year, data center construction spending is up 90%, according to a report from the Associated General Contractors of America, while private electric power investment rose 14% from September 2025. All other private nonresidential categories combined declined 7.8% over the same period, AGC found.

For allocators underwriting compute or power assets, tariff-driven materials costs and supply-chain strain now belong in the same pro forma lines as land and interconnection. AGC chief economist Ken Simonson said surging demand for data centers and power projects is "masking cutbacks in other investments" while adding to those supply-chain and cost strains.

ABC's Anirban Basu said, "Excluding data centers and the closely related power category, nonresidential spending actually fell in September." He expects the increases in data center and power construction to continue in the near term, citing recent rises in Treasury yields and ongoing materials price escalation as reasons AI-related project momentum should hold over the next several months.