Data centers dominate construction’s latest economic reports

An article from Data centers dominate construction’s latest economic reports

Nearly every metric highlighted the strength of the artificial intelligence buildout and weakness in other private project activity.

Published July 8, 2026

Sebastian Obando Senior Reporter

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In an aerial view, the Elemental Critical data center facility is seen on April 8, 2026, in Austin, Texas. Brandon Bell/Getty Images via Getty Images

Key indicators for construction moved in a positive direction during May, but nearly every one of those economic reports highlighted the strength of data center projects and weakness in other areas.

Planning activity and groundbreakings picked up month over month in May, according to Dodge Construction Network. Contractors as a whole also tacked on more work to their books during the month, according to Associated Builders and Contractors. Meanwhile, job openings in the construction industry hit their highest level of the year during that span, according to the Bureau of Labor Statistics.

Yet, the rosy picture belongs more and more to contractors with exposure to the artificial intelligence buildout.

Though healthcare and infrastructure work have propped up activity in recent months, contractors still found the bulk of growth stems from AI-related construction, according to economic reports. The highest job opening level in 10-months likely reflects “exceptional demand” for certain roles critical for data center construction, said Anirban Basu, ABC chief economist.

Outside those builds, however, contractors reported tougher conditions.

Private nonresidential construction spending, for example, fell for a seventh consecutive month in May, according to U.S. Census Bureau data. At the same time, costs on construction sites aren’t getting any cheaper. Input prices climbed at their fastest annual pace in May since the pandemic, according to an Associated General Contractors of America analysis.

Read below for Construction Dive’s roundup of the latest economic data.

Healthcare joined data centers in boost to May construction planning By Sebastian Obando • June 9, 2026

The increase builds on last month's growth to overall planning after a slow start to the year, according to Dodge Construction Network. Read the full article ➔
Construction costs surged in May at fastest annual rate since pandemic By Sebastian Obando • June 12, 2026

“Contractors are being hit by a double whammy” of rising materials prices and slower growth in bid prices, said Ken Simonson, chief economist at Associated General Contractors. Read the full article ➔
May backlog hit highest level since 2023, but confidence fell By Sebastian Obando • June 16, 2026

Contractors with data center awards reported stronger pipelines than those without those projects, said Anirban Basu, ABC chief economist. Read the full article ➔
Infrastructure, data centers kept construction starts strong in May By Sebastian Obando • June 22, 2026

Megaprojects drove sizable growth in groundbreaking activity over the month, said Sarah Martin, director of economic research at Dodge Construction Network. Read the full article ➔
Construction job openings hit 10-month high in May By Zachary Phillips • July 1, 2026

The increase, paired with the industry’s layoff and hiring rate, shows an uneven environment for labor demand, economists said. Read the full article ➔
Private construction spending slid in May By Sebastian Obando • July 2, 2026

Outside of the data center boom, spending on private projects weakened again, especially in the warehouse and office markets, according to ABC analysis of U.S. Census Bureau data. Read the full article ➔