July 2026 Data Center Report: Year-to-Date Spending is Four Times the 2025 Record

KEY POINTS

• U.S. Data Center construction spending totaled $7.9 billion in May 2026, ranking as the eighth-highest month on record.

• Year-to-date spending now stands at $58.1 billion, more than four times the record level set over the same period in 2025.

• Over the trailing 12 months, Virginia, Texas, Louisiana, Illinois, and North Carolina have captured nearly 60% of all new data center starts spending.

This exclusive data center report was prepared by ConstructConnect Chief Economist, Michael Guckes, and Associate Economist, Devin Bell.

Data Center Construction Starts Spending

U.S. Data Center construction spending totaled $7.9 billion in May 2026, ranking as the eighth-highest month on record.

Year-to-date spending now stands at $58.1 billion, more than four times the record level set over the same period in 2025. Thirteen projects broke ground during the month, lifting the year-to-date count to 91.

The 12-month and six-month moving averages, at $9.7 billion and $12.0 billion respectively, underscore the pace of the segment's recent acceleration.

The 12-month and six-month moving averages of Data Center starts spending, at $9.7 billion and $12.0 billion respectively, underscore the pace of the segment's recent acceleration. Image and Data: ConstructConnect 

Year-to-date 2026 spending now stands at $58.1 billion, more than four times the record level set over the same period in 2025. Shown in this chart, is cumulative Data Center starts spending by year in billions of dollars. Image and Data: ConstructConnect 

Data Center Costs Remain Elevated 

A review of all Data Center projects larger than 2,000 square feet, after trimming the top and bottom 10% by cost per square foot, places the 2026 median at $473 and the average at $784.

This large difference in median and average values points to the fact that even after removing the 10% of projects with the highest costs per square foot, there are still many projects reporting costs per square-foot of well over $1,000.

Data Center construction starts have accounted for over one-fifth of all Nonresidential building (NRB) starts over the last 12 months. Image and Data: ConstructConnect 

How Data Center Spending is Spread Across the U.S.

Data center project spending remains heavily concentrated in a handful of states. Over the trailing 12 months, Virginia, Texas, Louisiana, Illinois, and North Carolina have captured nearly 60% of all new Data Center starts spending.

The broader pattern shows abundant activity across the contiguous states from Texas eastward and up the East Coast to Virginia. The Midwest has also drawn a significant share, driven by strong starts in several former Rust Belt states.

New England and the Western U.S., by contrast, account for just 6% of recent spending. 

Volume and Value of Data Center Projects in Planning Has Grown

The volume and value of Data Center projects tracked by ConstructConnect Project Intelligence (CCPI) have grown sharply. CCPI is currently tracking nearly 100 data center projects in various stages of preconstruction, all with anticipated start dates before year-end.

Together, these projects represent more than $101 billion in planned spending, signaling that the segment's momentum is likely to carry through the remainder of 2026.

It is worth noting, these projects remain in preconstruction and are not guaranteed to break ground. The $101 billion figure also excludes Project Kestrel, a $100 billion data center development that ConstructConnect is individually monitoring given its exceptional valuation.

Near-Term Data Center Construction Pipeline

The near-term Data Center project pipeline mirrors the geographic pattern seen year-to-date. Much of the planned spending concentrates in the South, led by Texas, North Carolina, and Virginia.

The Midwest ranks second, though it trails the South by a wide margin, with activity driven by projects in North Dakota, Indiana, and Ohio.

Power Infrastructure Construction Starts Gain

The latest ConstructConnect Insight Forecast data shows Power Infrastructure starts rose 2.7% through May 2026 compared with the same period a year earlier.

Because data centers consume substantial power to operate, sustained growth in data center construction should continue to lift demand for Power Infrastructure.

That momentum is already evident in the near-term forecast, which projects Power Infrastructure construction starts to finish 2026 up 30.8% over 2025.

Stay Connected

Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next.

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