Surging data center construction is helping to sustain overall nonresidential activity, providing a critical counterweight to slower momentum in more traditional building segments.
Powered land developments are addressing long lead times for energy access, packaging grid connections, and on-site resources to keep large data center projects on schedule.
The rising energy demand is expanding opportunities beyond data center developments, opening new possibilities for contractors skilled in power infrastructure.
Data center construction starts surged to $77.7 billion in 2025, marking a staggering 190% year-over-year increase, according to the latest ConstructConnect Data Center Report. This momentum carried into January 2026, which set a new record for the highest single-month total at $25.2 billion in starts.
This explosive growth in the data center sector is driving the broader nonresidential market. Excluding the office category, which includes data center construction, nonresidential building (NRB) construction is projected to decline by 3.8% in 2026. However, with data centers factored in, NRB construction is expected to grow by 1.5%, according to ConstructConnect data.
For construction professionals facing mixed conditions across other sectors, data centers stand out as one of the most promising opportunities in today’s market. Innovations like powered land are further expanding this potential, creating opportunities beyond vertical construction.
As demand for data centers accelerates, energy access has become a critical bottleneck. Large-scale projects face potential grid interconnection delays stretching several years, a timeline that clashes with the rapid pace at which hyperscalers and tech companies are building new facilities.
Powered land has emerged as a potential solution to this challenge. These pre-prepared sites are ready for data center development before vertical construction begins, featuring secured grid connections, onsite power generation, substation access, and battery storage infrastructure.
By providing land with energy capacity already in place, powered land developers effectively eliminate one of the most significant timeline risks in data center projects, enabling faster and more efficient builds.
The record-breaking construction volumes in the data center market are just one facet of the opportunity for construction professionals. Powered land and other energy solutions like it expand this potential upstream, into the energy infrastructure work required to prepare a site for data center development.
Firms with expertise in power infrastructure—such as substation construction, on-site generation, and battery storage—are well-positioned to meet the growing demand for solutions that align with hyperscaler timelines.
With interconnection delays pushing energy preparation years ahead of actual construction, powered land offers a durable, early-stage potential entry point into one of the most resilient and high-performing sectors in today’s market.
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