Construction Growth Beyond Data Centers

A new analysis from ConstructConnect highlights how the U.S. construction industry’s strong growth narrative is being heavily influenced—and somewhat distorted—by the rapid expansion of data centers.

According to the report, nonresidential building (NRB) construction starts rose 22.8% in 2025. However, when the Offices category—largely dominated by data center construction—is excluded, that growth rate drops significantly to 11.5%, revealing a more moderate but still steady expansion across the broader market.

Data Centers Skew the Growth Narrative

The data underscores just how dominant data center investments have become. Nearly 90% of spending in the Offices category in 2025 was tied to data centers, pushing Offices’ share of total NRB starts from just 6% in 2022 to 25% in 2025.

This surge has created a misleading perception that construction growth is stronger than it actually is across most sectors. While data centers remain a critical driver, they also overshadow other important segments that are quietly experiencing significant gains.

Using 12/12 Metrics to Reveal True Trends

To better understand underlying performance, analysts used a 12-month rolling growth rate—known as the “12/12” rate of change. This method compares cumulative spending over the most recent 12 months to the prior 12-month period, offering a clearer picture of sustained momentum.

Through February 2026, this metric reveals that several construction segments are performing exceptionally well, even without the influence of data centers.

High-Growth Sectors Gaining Momentum

Beyond Offices, multiple categories are seeing rapid expansion:

• Manufacturing surged by 104%, reflecting increased investment in domestic production and supply chain resilience.
• All Other Civil Construction recorded a 110% growth rate, signaling rising infrastructure activity.
• Dams, Canals & Marine projects grew 36%, maintaining steady long-term momentum.
• Power Infrastructure expanded by 30%, driven partly by rising electricity demand from data centers and electrification trends.

These sectors demonstrate that growth in construction is more diversified than headline figures suggest.

$192.9 Billion in Overlooked Opportunities

Collectively, these high-performing sectors—excluding Offices—accounted for $192.9 billion in construction starts in 2025. This total is more than double the value of data center-related starts during the same period.

The findings emphasize that industry leaders focusing solely on data center growth may be overlooking substantial opportunities across manufacturing, infrastructure, and energy-related construction.

Additional Insights & Industry Context

The report points to a broader shift in the construction landscape. While data centers continue to attract significant capital due to AI, cloud computing, and digital infrastructure demand, other sectors are benefiting from parallel trends:

• Reshoring and industrial expansion are fueling manufacturing construction.
• Climate resilience and water management are boosting dams and marine projects.
• Energy transition and electrification are accelerating power infrastructure investments.

These dynamics suggest a more balanced and resilient construction market than headline figures alone might indicate.

Conclusion

The analysis from ConstructConnect highlights the importance of looking beyond data center-driven growth to understand the full scope of opportunities in the construction industry.

While data centers remain a dominant force, the real story lies in the diverse and rapidly growing sectors that continue to shape the future of construction.

Originally reported by Michael Guckes, Chief Economist in Construct Connect News.