KEY POINTS
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Civil construction starts have rapidly grown in the post-COVID period.
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Growth has been driven by federal legislation as well as private demand for various Civil subcategories.
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The momentum has carried into 2026, and continued demand will likely extend growth even further.
Civil construction starts more than doubled between 2021 and 2025, driven by both public investment and private demand.
That momentum has not faded. Demand across the civil market remains elevated, and near-term forecasts point to continued growth.
The Causes
The first major driver was the Infrastructure Investment and Jobs Act (IIJA), passed in 2021, which directed $550 billion in new federal spending toward civil construction from 2022 through 2026. That funding supported projects across transportation, airports, power, and water.
Private demand added a second push to those many of those same categories. Data center construction surged on the back of rising AI and digital infrastructure demand, with starts climbing from under $4 billion in 2021 to over $80 billion in 2025.
Each development requires power and water infrastructure to support it, adding additional demand for Civil construction.
The Results
Civil construction peaked at $189 billion in 2019 and declined nearly 20% by 2021, falling to $156 billion. The IIJA's passage and the acceleration of data center construction reversed that trajectory, with starts growing 202% from 2021 to 2025.
That growth extended across every civil subcategory, with each posting starts at least 1.6 times its 2021 level. Airport construction led the gains, rising 480%, followed by Power Infrastructure at 411%, and All Other Civil climbed 230%.
The Present
Civil construction has carried its momentum into 2026, with year-to-date starts through June running 9% ahead of the same period in 2025. Road construction, Water and Sewage Treatment, and Dam and Marine work have each contributed to that gain.
The trajectory since 2021 has been shaped by two forces. Federal infrastructure investment through the IIJA and private demand for power and water infrastructure driven by data center growth each added to spending, driving civil construction starts to record levels in 2025.
With both drivers still active, 2026 is building from that elevated base, and near-term forecasts suggest that growth may extend well beyond it.
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