Louisiana’s Construction Market Shows Broad Growth Beyond Data Centers

KEY POINTS

• National nonresidential building starts are expected to edge higher, but growth is increasingly concentrated in data center and other high-dollar-value projects. 

• Stripping out office activity reveals a weaker national picture, with nonresidential building starts expected to pull back from recent highs. 

• Even without office projects in the mix, Louisiana’s nonresidential building starts are projected to rise, highlighting a more diversified opportunity set for firms.

Looking ahead, the Office subcategory is expected to maintain its momentum, bolstering national nonresidential building starts even as major construction categories face declines. In Louisiana, however, growth is projected to extend beyond the Office subcategory, touching much of the state's construction landscape. 

Modest National Growth Masking Softness Beyond Office Construction 

ConstructConnect projects total nonresidential building starts—encompassing all nonresidential construction except Civil—to grow by a modest 1.5% year-over-year (YoY) in 2026. This growth is largely attributed to megaprojects, defined as those exceeding $1 billion in value, a category which Offices by way of data centers have increasingly become a part of. 

In 2026, The Office subcategory is forecasted to see nearly 50% growth, likely continuing to benefit from the surge in data center construction. In contrast, key sectors such as Educational and Industrial are expected to decline. Excluding the Office subcategory, national nonresidential building starts are projected to drop by 8.7%, indicating a contraction in the broader market compared to 2025 levels. 

Louisiana’s Nonresidential Starts Pivot Toward a More Balanced Pipeline 

Louisiana tells a different story. In 2025, the state benefited from substantial investments in data centers and industrial projects, recording $15 billion in data center starts alone—the second-highest total nationwide, behind only Virginia. While Louisiana’s 2026 Office forecast remains significantly higher than historical levels, spending in the subcategory is not expected to match the record-breaking totals of 2025. 

Surprisingly, nonresidential building starts in Louisiana are projected to grow even when the Office subcategory is excluded. Without Offices, the state’s nonresidential building starts are forecasted to rise by an impressive 26.9% year-over-year (YoY). 

This growth is driven by broad-based expansion, with seven of the eight construction verticals within nonresidential building expected to see gains. Key sectors such as Educational, Medical, and Retail are forecasted to post significant increases, while strong Industrial starts are projected to sustain overall spending despite a slight contraction in the category. 

Looking beyond nonresidential building, both Civil and Residential construction are poised for significant growth, as utilities, infrastructure, and housing are built out to accommodate the rising demands. 

What Louisiana’s Shift Says About Finding Construction Opportunity 

Louisiana’s nonresidential building market has undergone a reshaping in the past year, as major data center and industrial investment flowed into the state. Opportunities are forecasted to increasingly flow through to other areas of construction in 2026, while projected continued investment in Industrial should continue supporting the industry in the state. Looking at the broader construction industry in the state, Civil and Residential are set for strong growth respectively. 

For construction firms, Louisiana’s tale highlights how important understanding the data is. While construction starts nationally are forecasted to slide without the support of data centers, Louisiana is seeing strong figures virtually across the board. Even in a market where growth is being concentrated, there are still pockets of opportunities for firms that can find them. 

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