KEY POINTS
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In the 12 months ending January 2026, $217.7 billion in megaprojects (projects valued at $1 billion or more) broke ground, more than doubling the previous year’s $99.2 billion.
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Commercial developments, led by data centers, dominated spending at $84 billion over the past 12 months.
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Megaprojects now represent over 25% of nonresidential construction spending, creating a divide where large contractors thrive while smaller firms compete for fewer opportunities.
One of the most significant trends reshaping nonresidential construction is the rise of megaprojects—projects valued at $1 billion or more. In the trailing twelve months ending January 2026, $217.7 billion in megaprojects broke ground, more than doubling the $99.2 billion recorded in the previous year.
January 2026 alone saw over $26 billion in megaproject starts, marking the third-highest single-month total ever recorded. This brought the average monthly spending on megaprojects over the past year to more than $18 billion.
Megaproject Spending Concentrated in Key Sectors
Spending has been concentrated in a few key sectors. Commercial developments led the way, accounting for just over $84 billion over the past twelve months, driven largely by massive data center investments. Sports Arenas, Convention Centers, and Transportation Terminals also saw megaproject activity, though at a much smaller scale.
Industrial megaprojects totaled $64.7 billion, anchored by major Manufacturing projects such as the $25 billion TSMC mega-fabrication plant, which broke ground in May.
Civil construction projects also saw significant activity, particularly in Power Plants and Power Lines, consistent with the expected energy demands of future data centers and manufacturing facilities.
Airports and Tunnels contributed to Civil construction megaprojects, but to a lesser extent.
Megaprojects Capturing More Nonresidential Market Share
The rapid growth of megaprojects has significantly increased their share of the nonresidential construction market. Pre-Covid, megaprojects accounted for 15% of nonresidential starts spending.
By January 2026, megaprojects represented over 25%, with one in four dollars in nonresidential construction concentrated in a small number of massive projects.
Geographic Results of US Megaproject Spending
Geographically, US megaproject spending has been heavily concentrated in the South census region, accounting for $110.3 billion over the past 12 months.
The West followed with $64.4 billion, while the Midwest and Northeast lagged at $32.2 billion and $10.7 billion, respectively.
Scope of Megaprojects Divides Construction Market
This shift is effectively dividing the market. Contractors with the resources, scale, and geographic reach to handle billion-dollar projects are capturing a growing share of the investment. Meanwhile, smaller firms are left to compete for the remaining pool of construction dollars.
Read the Construction Economy Snapshot for more details on construction labor, trends, and regional analysis.
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