October 2026 Data Center Report: Spending Reaches $98.5 Billion, Construction Costs Rise

KEY POINTS

• August 2026 Data Center spending totaled $14.4 billion across 17 projects, lifting the year-to-date (YTD) project count to 153 and the total spent on Data Centers to $98.5 billion.

• The average Data Center cost $1.18 billion and covers 707,000 square feet YTD, among Data Centers with known prices and square-footage.

• ConstructConnect Project Intelligence is currently tracking 65 Data Center projects, worth a total $26.1 billion, with start dates before the end of 2026.

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

Data Center Construction Spending

August 2026 Data Center spending totaled $14.4 billion across 17 projects, lifting the year-to-date (YTD) project count to 153 and the total spent on Data Centers to $98.5 billion.

• The largest project to break ground for the month was the nearly 300-acre AVAIO Digital Data Center Campus project in Little Rock, Arkansas at $6 billion.

• Through August 2026, Data Centers accounted for 24% of all Nonresidential Building starts.

August 2026 Data Center spending totaled $14.4 billion across 17 projects, lifting the year-to-date (YTD) project count to 153 and the total spent on Data Centers to $98.5 billion. Image and Data: ConstructConnect 

Data Center Construction Costs Rising Faster Than Size

 Data Centers are rising in costs faster than size, pushing cost per square foot prices steeply higher. 

• YTD, among Data Centers with known price and square footage, the average Data Center cost is $1.18 billion and covers 707,000 square feet. The comparable figures for 2025 were $507.4 million and 493,000 square feet.

• On a per-project basis the Data Center construction cost, per square foot, can range dramatically from less than $300 to more than $2,200 per square foot, depending on the project specifics.

• After removing the bottom and top 10% of projects by their cost per square foot, the median and average Data Center price, per square foot in the YTD period, is $541 and $867, respectively. 

Through August 2026, new Data Center builds are moving away from the coasts and towards the Midwest and Southern sections of the country. Image and Data: ConstructConnect 

How is Data Center Spending Spread Across the US?

From a geographic perspective, new Data Center builds are moving away from the coasts and towards the Midwest and Southern sections of the country.

So far in 2026, three particular multi-state areas have reported very high levels of Data Center spending:

1. These include the five contiguous states between Wisconsin and Ohio. Of these five states, four have reported data center starts of $10 billion or more.

2. Additionally, the four states between Texas and Mississippi have reported similarly strong spending with Texas the upward exception at over $22 billion.

3. Finally, along the eastern seaboard the string of states between Georgia and Virigina have seen spending of between $5 billion and over $20 billion.

Beyond these tight groupings, only a few individual states have seen spending of $2 billion or more including North Dakota, Arizona, and Pennsylvania. 

Where are the US Data Center Projects in Planning

ConstructConnect Project Intelligence is currently tracking 65 data center projects, worth a total $26.1 billion, with start dates before the end of 2026.

With the year nearing a close, it looks like much of the planned data center value has reached groundbreaking, with a noticeably smaller planned pool of projects remaining in 2026.

These projects remain in various stages of preconstruction, meaning there is no guarantee that any single project reaches groundbreaking.

Planned US Data Center construction starts value by US Census Region is shown on a map from September to December 2026. These projects are still in the preconstruction phase and are not guaranteed to break ground. Image and Data: ConstructConnect

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

Geographically, planned data center is heavily concentrated in the South, led by Texas with over $11 billion in planned projects left in 2026.

• Each of South Carolina, Virginia, Georgia, and West Virginia have $2 billion or more in planned data center projects.

• The next closest region is the Northeast, though almost all of this value is concentrated in Pennsylvania.

• Breaking with the year-to-date geographical pattern, the Midwest does not have a significant share of near-term planned data center projects, accounting for just 1.5% of the $26.1 billion total planned spending figure. 

How Power Infrastructure Starts are Performing

Power infrastructure has become an increasingly important piece of the construction economy as energy demands increase amid the rapid data center buildout.

• Year-to-date, Power Infrastructure starts are 119.9% above the comparable period in 2025, largely powered by the $13 billion Catarus Commonwealth LNG project that broke ground in August.

Momentum is expected to continue for the subcategory, as Power Infrastructure starts are forecast to rise 30% in 2027 compared to full-year 2026.

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