A historic milestone was reached for January 2026 US data center construction starts, totaling $25.2 billion.
Groundbreaking on 20 data center projects, including two $10 billion developments and projects costing $1.8 billion and $1.3 billion, occurred in January.
The relentless demand for data center construction has driven costs per square foot sharply higher.
This exclusive data center report was prepared by ConstructConnect Chief Economist, Michael Guckes, and Associate Economist, Devin Bell.
January 2026 marked a historic milestone for data center construction, with starts totaling $25.2 billion, the highest monthly figure since recordkeeping began in 2020. This surge included groundbreaking on 20 data center projects across the country.
Among the largest projects were two massive developments, each valued at $10 billion, alongside two others with construction costs of $1.8 billion and $1.3 billion, respectively.
This record-breaking month elevated the trailing twelve-month spending total to $103.7 billion, with an average monthly expenditure of $8.6 billion over the same period.
US data center construction starts, shown on a map of trailing twelve-month spending, totaled $103.7 billion through January 2026, with an average monthly expenditure of $8.6 billion over the same period. Image and Data: ConstructConnect
The relentless demand for data center construction has driven costs per square foot sharply higher over the past five years. From a mid-point estimate of $183 per square foot in 2020, costs have surged to $415 per square foot in 2025, a compounded annual growth rate of nearly 18%.
If this trend continues, the mid-point estimate for 2026 is projected to reach $488 per square foot.
Geographically, January 2026 construction starts activity was heavily concentrated along the East Coast, where $12.2 billion in starts were allocated from New York through to South Carolina.
The Midwest also saw significant investment, with another $12.2 billion allocated across Minnesota, Illinois, Michigan, and Ohio. The remaining $800 million was focused west of Minnesota, primarily in Texas and Arizona.
While data center construction remains widespread across the U.S., the Southeast continues to dominate as the preferred region for new projects, driven by favorable power availability and regulatory conditions.
Year-to-date US data center construction starts spending is shown on a map. In January 2026, total construction starts totaling $25.2 billion were recorded according to ConstructConnect project data, the highest monthly figure since recordkeeping began in 2020. This surge included groundbreaking on 20 data center projects across the country. Image and Data: ConstructConnect
The near-term outlook for data center construction remains strong, with a significant pipeline of projects that could sustain the current momentum. ConstructConnect Project Intelligence is tracking 65 projects, collectively valued at $92.1 billion, with potential start dates within the next six months.
However, it’s important to note that these projects are in various stages of preconstruction and are not guaranteed to break ground.
Geographically, the Southern census region continues to dominate, mirroring the distribution of recent groundbreaking activity.
A US map of planned data center construction starts by region over the next six months is shown by US Census Regions for the period February 2026 through July 2026. Note that these projects are in various stages of preconstruction and are not guaranteed to break ground. Image and Data: ConstructConnect
Over 56% of the near-term potential spending is concentrated in the South, followed by the Midwest at 26.7%.
The Northeast and West trail significantly, accounting for 14.7% and 2.3% of the pipeline, respectively.
ConstructConnect forecasts that power infrastructure starts will reach record levels in 2026, with further acceleration expected in the coming years.
This projection aligns with the latest Preliminary Monthly Electric Generator Inventory report from the Energy Information Administration, which indicates that U.S. power plant developers and operators plan to add 86 gigawatts of new utility-scale electricity generating capacity to the grid in 2026, a record-breaking figure.
This unprecedented scale of power investment is vital to meeting the massive energy demands of the rapidly expanding data center sector. As development accelerates, ensuring adequate power capacity will be essential to sustaining growth.
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