June 2026 Data Center Report: Construction Remains Strong as Costs Rise

KEY POINTS

• Data center construction remained historically strong in April, with $2.4 billion in starts pushing 2026 year-to-date spending to $49.5 billion, far above the $13.6 billion recorded a year earlier.

• Costs are rising as demand stays intense. Over the trailing 12 months, the average data center project climbed to $475 million.

• The near-term data center pipeline remains heavily concentrated in the South, which accounts for well over half of the planned spending tracked. 

• Rising data center demand is also lifting power infrastructure, with first-quarter 2026 starts up 21.2% from a year earlier.

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

Data Center Construction Starts Spending

In April 2026, total data center spending reached $2.4 billion, pushing the year-to-date (YTD) total to an impressive $49.5 billion. Sixteen new data center projects were initiated during the month, bringing the YTD project count to 74.

While April's spending figure is notably lower than recent months—reflected in the 3-month moving average of $8.0 billion—it still ranks as the twentieth-highest monthly total since January 2020.

The YTD total of nearly $50 billion in data center spending significantly outpaces the comparable figure from a year ago, when YTD starts amounted to just $13.6 billion in 2025.

Trailing 12-month metrics remain exceptionally strong, driven by a surge in data center spending between October 2025 and March 2026.

During this six-month period, $92.1 billion was invested in the construction of 140 new data centers. Each month during this stretch recorded spending levels high enough to rank within the top 10 for monthly dollar spending.

The 12-month moving average for Data Center construction starts spending through April 2026 was $9.8 billion, as shown in the chart above. Average Data Center spending fell below $10 billion per month in April but remains more than 300 percent above year-ago levels. Image and Data: ConstructConnect

Data Center Costs Continue Upward Trend

The relentless demand for data centers has driven both unit and square foot prices sharply higher in recent quarters. Over the trailing 12 months, the average cost of a data center has surged to $475 million, a significant increase from $177.9 million during the same period a year ago.

Similarly, the median cost per square foot in 2026—calculated after excluding the top and bottom 10% of projects by cost per square foot, as well as all projects under 2,000 square feet—has risen to $445 per square foot. This marks a 7.4% increase compared to full-year 2025 results.

Meanwhile, the average price per square foot in 2026 has climbed dramatically to $746, reflecting a 45% jump from the full-year 2025 average.

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

ConstructConnect Project Intelligence is currently tracking over 90 data center projects in various stages of preconstruction, with anticipated start dates before the end of the year. Collectively, 94 projects valued at $73.1 billion remain in the near-term project pipeline.

It is important to note, however, that these projects are still in the preconstruction phase and are not guaranteed to break ground.

Additionally, this total excludes Project Kestrel—a $100 billion data center development—which is being monitored by ConstructConnect due to its exceptionally large valuation.

Near-Term Data Center Construction Pipeline

The near-term data center pipeline remains heavily concentrated in the South, which accounts for well over half of the planned spending tracked. Texas continues to lead the region, with significant investments also planned in North Carolina, Virginia, and Arkansas.

Planned US Data Center construction starts value by US Census Region is shown on a map from May to December 2026. The near-term data center pipeline remains heavily concentrated in the South, which accounts for well over half of the planned spending tracked. It is important to note, however, that these projects are still in the preconstruction phase and are not guaranteed to break ground. Image and Data: ConstructConnect 

[Read How to Know If Your Construction Bid Pipeline Is Healthy]

In the West, Utah stands out as the primary contributor, representing nearly the entire regional data center pipeline. Meanwhile, the Midwest, which garnered attention earlier this year, ranks third in planned spending. Investments in this region are distributed across North Dakota, Indiana, and Ohio.

Power Infrastructure Rises with Energy Demands

According to the latest ConstructConnect Insight Forecast data, Power Infrastructure starts rose by 21.2% in the first quarter of 2026 compared to the same period last year.

This growth is driven by the increasing energy demands of data centers, which require reliable power to operate continuously, spurring greater investment in power infrastructure.

Looking ahead, Power Infrastructure construction starts are projected to end 2026 with spending over 30% higher than in 2025. This forecast highlights the anticipated growth in power demand and the broader trend toward electrification.

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