Data Centers Drive Nonresidential Construction Spending in September
National nonresidential construction spending rose 0.6% in September, driven almost entirely by rapid growth in data center and related power construction. The analysis cited higher interest rates and materials costs as factors likely to keep growth concentrated in artificial intelligence-related projects.
National nonresidential construction spending increased 0.6% in September, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. Data center construction spending rose 8.6% during the month and has expanded at a 217% annualized rate since May, while spending excluding data centers and related power projects declined.
ABC Chief Economist Anirban Basu said higher Treasury yields and rising materials costs could narrow construction momentum toward artificial intelligence-related projects. The article also reported declines in residential construction and several nonresidential sectors, including education, commercial, health care, highways and streets, and conservation and development.