Data Center Surge Drives Nonresidential Construction Growth in September

U.S. nonresidential construction spending maintained positive momentum in September, driven primarily by a sharp increase in data center development across the nation. Investment in data centers rose 8.6 percent from the previous month, offsetting broader headwinds in the commercial building sector.

The September figures highlight a sustained surge in technology infrastructure projects. Since May, spending on data center construction has expanded at an annualized rate of 217 percent, reflecting rapid capital deployment toward cloud computing and digital processing facilities.

The growth in data infrastructure helped keep overall nonresidential spending in positive territory despite ongoing economic pressures. Higher interest rates and tighter financing conditions continued to weigh on traditional real estate segments, including commercial office spaces and retail centers.

Private nonresidential construction priorities have shifted significantly toward specialized high-tech facilities over the past year. Demand for artificial intelligence computing capacity and localized data nodes has prompted major developers to accelerate project timelines and expand expenditure budgets.

Increased spending on heavy power infrastructure and specialized cooling systems has also elevated the total valuation of data center developments. Infrastructure buildouts are expected to remain a primary contributor to nonresidential construction totals in the near term.