Construction’s Economy: What the Numbers Mean for the Carolinas
Data center construction is driving strong growth in North Carolina and South Carolina, increasing demand for contractors, skilled labor, equipment, and electrical infrastructure. The article says rising material costs, workforce shortages, and tighter margins are complicating the outlook despite strong regional economic growth.
Data center construction is responsible for much of the recent increase in nonresidential construction spending, with related spending rising 7.5% in August and more than 70% over the prior year. The trend is creating opportunities for electrical, mechanical, engineering, and specialty contractors across the Carolinas, particularly in markets such as Charlotte, Raleigh-Durham, Greenville-Spartanburg, and Charleston.
The expansion is also intensifying competition for skilled workers and electrical equipment while higher prices for materials such as steel, copper wire, switchgear, and transformers pressure project budgets. Contractors with data center work reported longer backlogs than those outside the sector, but the article cautions that strong demand does not guarantee profitability as costs, labor constraints, and economic uncertainty persist.