Nonresidential Construction Spending Shows Mixed Trends Amid Data Center Boom

Despite a slight overall increase in nonresidential construction spending, private sector spending has declined, mainly due to a slowdown outside data center construction. .

Key Highlights

  • Nonresidential construction spending increased by 0.1% in June, reaching a total of $1.277 trillion annually

  • Data center construction experienced a 7% rise in June and a 46% increase year-over-year, fueling sector growth

  • Private nonresidential spending excluding data centers declined 0.6% in June and 7.9% over the past year

WASHINGTON, DC — The US Census Bureau has published its monthly data on National nonresidential construction spending.

Spending rose 0.1% in June, with both public and private nonresidential spending up 0.1% for the month. Spending was up on a monthly basis in 8 of 16 nonresidential subcategories. Private nonresidential construction spending was down nearly 5% from a year ago.

On a seasonally adjusted annualized basis, nonresidential spending totaled $1.277 trillion.

Data Centers Driving Spending, Backlog

“Through April 2025, private nonresidential construction spending ascended to $806.1 billion on a seasonally adjusted annual rate basis, an all-time high,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “Since then, that figure has expanded only three times over the past 14 months.

“Despite an ongoing data center construction boom, private nonresidential construction spending has declined to a seasonally adjusted annual rate of $745.3 billion since the April 2025 peak, which translates into a decline exceeding 7%,” said Basu. “Tellingly, private nonresidential construction spending excluding data centers fell 0.6% in June 2026 and is down 7.9% year over year.

“Meanwhile, data center construction was up 7% in June and up 46% from a year ago. Contractors working on data centers continue to benefit from this momentum. According to ABC’s latest Construction Backlog Indicator, the 13% of ABC members under contract to work on data centers have significantly higher backlog (11.0 months) than the 87% that are not (8.5 months).”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

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