KEY POINTS
-
Data center construction hit a record $14 billion in July 2025, doubling the previous monthly high and pushing year-to-date spending to $26.9 billion.
-
Average data center costs climbed to $220 million as developers built larger, more complex hyperscale projects.
-
Planned data center construction starts totaling $20 billion across 19 projects nationwide over the next six months, according to ConstructConnect data.
Data Center Spending Sets New Records, 2025 Projections Exceed $46 Billion
ConstructConnect reported that total data center construction starts reached $14.0 billion in July 2025, representing a substantial year-over-year increase from July 2024’s total of $682.0 million.
This record-breaking figure nearly doubled the previous high of $7.4 billion set in August 2024.
July’s performance more than doubled the 2025 year-to-date data center construction starts spending, which now stands at $26.9 billion.
To put this in perspective, July’s single-month spending exceeded the entire first half of 2025, which totaled a record $12.8 billion. Current year-to-date spending is nearly triple last year’s comparable reading of $9.4 billion, almost ten times greater than in 2023.
Chart of monthly average data center construction starts spending through July 2025. The line represents a 12-month moving average, in $ million. Image and Data: ConstructConnect
The historic July spending pushed the moving 12-month average to a record $3.88 billion, marking a 40% increase from June’s revised reading of $2.77 billion. At this pace, total 2025 spending is projected to exceed $46 billion.
This projection aligns closely with ConstructConnect’s starts estimate based on future projects expected to begin construction in the remainder of 2025. These projects are currently in late-stage preconstruction phases.
Rising Data Center Construction Costs Average $220 Million Per Facility
Eighteen data centers broke ground in July 2025, bringing the year-to-date total to 125 projects and the trailing twelve months count to 212 facilities. Based on the past 12 months of construction starts, the average data center now costs a record $220 million to build.
July’s figure marks only the third time in ConstructConnect’s historical records that average construction costs have surpassed the $200 million threshold. The first occurrence was recorded in September 2024. This cost escalation reflects the industry’s shift toward larger, more complex facilities designed to support advanced computing requirements and increased power demands.
U.S. Data Center Geography: Louisiana, Texas, and Virginia Lead Investment
Data centers are being built across the continental United States as developers seek locations with sufficient available power capacity for these energy-intensive facilities. Louisiana currently leads all states in data center spending over the past twelve months, establishing a new record for single-state investment.
This leadership position stems primarily from the $10 billion Meta data center construction project in Richland County, supplemented by a smaller LSU Health data center facility in New Orleans. Combined, these projects represent the largest concentration of data center investment in any single state during the reporting period.
Traditional high-performing states continue to demonstrate strong spending levels. Texas recorded $7.1 billion in data center construction spending, while Virginia reached $6.4 billion over the past twelve months.
Wisconsin, Arizona, and Georgia Gain Ground in Data Center Development
Other states have emerged as significant spenders in the data center construction market. Wisconsin reported $3.7 billion in spending, while Arizona and Georgia each exceeded $2 billion in data center construction investment.
This geographic diversification reflects the industry’s ongoing search for optimal combinations of power availability, land costs, and favorable regulatory environments.
The expansion into new markets reveals the critical importance of electrical grid capacity in data center site selection. Data center developers must secure locations capable of supporting the substantial power requirements of modern data center facilities.
This map shows US Data Center construction starts spending in the trailing 12 months through July 2025, in $ billion. Image and Data powered by ConstructConnect Project Intelligence
Next 6-Months Planned Data Center Starts — $20 Billion US Pipeline
ConstructConnect’s Project Intelligence (CCPI) data shows planned data center construction starts totaling $20 billion across 19 projects nationwide over the next six months. These projects are currently in bidding, pre-construction, or negotiated stages with no guarantee of actual construction starting.
The outlook for data center starts for the next six months is consistent with the record-setting pace established in year-to-date performance. The $20 billion six-month planned starts value aligns with the $26 billion in starts recorded through the first seven months of 2025.
Investment concentration remains significant within the planned starts value, as two megaprojects account for 80% of the total investment value. This concentration reflects the industry’s continued evolution toward larger, consolidated campus facilities rather than smaller, distributed data center networks.
Regional Outlook Highlights Megaprojects in Illinois, Pennsylvania, and Virginia
Data center investment concentration in specific regions reflects fundamental infrastructure requirements that determine if a project gets built. Power availability, land costs, and regulatory environments may create competitive advantages that direct investment toward markets capable of supporting hyperscale development.
The Midwest captures 54% of total investment value with $10.8 billion planned across three projects. A single $10 billion data center campus project in Illinois represents the largest planned investment in the region.
Virginia leads project volume in the South with eight of ten planned regional starts, accounting for 97% of the region’s $1.3 billion total investment. This concentration aligns with Virginia’s position as home to the highest number of data centers in the United States, according to Data Center Map. The state’s established infrastructure and regulatory framework continue to attract capacity expansion.
The Northeast’s $6 billion pipeline centers on a data center project in Pennsylvania. This facility represents the region’s largest single planned investment, with two smaller projects planned for New York and Connecticut sites.
The value of planned starts in Western markets includes $1.25 billion across two projects in Arizona and California. In Canada, one planned start in Alberta is valued at $750 million. These markets represent selective investment opportunities where advantages such as energy resources in Arizona and Alberta, as well as technology proximity in California, justify development despite broader regional constraints.
The prevalence of megaprojects, particularly the $10 billion Illinois campus and the $6 billion Pennsylvania development, indicates that developers prioritize locations where utilities can accommodate significant capacity demands.
This requirement channels investment toward markets with adequate grid infrastructure and favorable regulatory environments for large-scale power consumption.
This map displays the regional distribution of total potential data center construction start value across the four US census regions and Canada over the next six months. Image and Data powered by ConstructConnect Project Intelligence
Energy Infrastructure Spending: $22.9 Billion Powering Future Data Center Growth
The energy sector demonstrates substantial construction momentum that directly supports data center expansion. According to CCPI data, energy-related construction starts over the next six months will total $22.9 billion. The energy project pipeline addresses critical power infrastructure demands that currently constrain data center development.
Regional energy investment shows concentrated patterns across key markets. Canada leads with $12.4 billion in planned energy construction, followed by Southern states at $6.8 billion and Western regions at $3.0 billion.
States that coordinate energy infrastructure development with data center planning create potential competitive advantages in attracting hyperscale investment. Louisiana demonstrates this strategic approach with record data center spending over the past 12 months alongside $5.2 billion in planned energy construction starts over the next six months.
Markets securing substantial energy capacity through this construction pipeline position themselves to potentially capture increased shares of future data center development activity. Power availability remains a fundamental factor in site selection decisions, making energy infrastructure investment a key indicator of regional competitiveness for data center projects.
The correlation between energy infrastructure development and data center investment patterns signifies the critical importance of power capacity planning in regional economic development strategies.
About ConstructConnect
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com
