Amid a broadly cautious construction market, ten sectors are showing sustained project momentum in 2026 — either because they are driven by forces that transcend interest rates and economic uncertainty, or because they have locked in funding that insulates them from near-term pullbacks. For construction owners, understanding which sectors are actively building is the difference between chasing work that has already dried up and positioning for contracts that are still ahead.
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Data center construction is the single strongest segment in 2026, with a net positive outlook of 57 percentage points in the AGC's annual survey — the highest of any category and up sharply from 42 points in 2025. Spending is projected at $86 billion for the year, driven by hyperscaler investment from Amazon, Microsoft, Google, and Meta. The sector is also the primary driver of unprecedented demand for electrical contractors and high-voltage power infrastructure.
The AI-driven data center boom is colliding with the power grid's capacity limits, creating a parallel construction surge in generation, transmission, and interconnection infrastructure. Utility-scale battery storage, gas peaker plants, solar and wind generation, and transmission upgrades are all moving from planning to construction across the Sun Belt, Midwest, and Mountain West. Electrical equipment supply chains — particularly transformers — remain constrained, making early procurement critical.
TSMC's three-facility Arizona build-out, Intel's Ohio complex, Samsung's Texas campus, and Micron's Idaho expansion represent tens of billions in construction spending underway or commencing in 2026. These are among the most labor-intensive and technically demanding projects in the country, with cleanroom construction, vibration-isolated foundations, and specialized MEP requirements that demand the most experienced specialty subcontractors available.
Healthcare construction maintained a positive outlook in the AGC survey despite the broader market softening. Major hospital expansions — including IU Health's $4.3 billion Indianapolis project, Tutor Perini's $960 million UCSF Children's Hospital, and numerous regional expansions — are under construction or breaking ground in 2026. Outpatient and behavioral health facilities are also generating consistent activity as healthcare systems prioritize ambulatory care growth.
Highway, bridge, and transit projects funded by the Infrastructure Investment and Jobs Act continue to move through procurement and construction in 2026, supported by formula funding appropriated through September 30. Airport terminal expansions — at DFW, Chicago O'Hare, Nashville, and Miami — represent some of the largest individual infrastructure contracts of the year.
Military construction remains consistently active, driven by ongoing facility modernization, new base infrastructure, and hypersonic weapons research facility builds. Kiewit, Hensel Phelps, Conti Federal, and other major federal contractors are maintaining strong backlogs in this segment, which is largely insulated from the private market volatility affecting other sectors.
After the pandemic-era industrial construction surge peaked in 2023-2024, new starts have moderated — but existing projects continue through their construction cycles, and new activity tied to reshoring and e-commerce fulfillment infrastructure is sustaining a meaningful pipeline. Cold storage, food processing, and advanced manufacturing facilities are among the most active subsectors.
Oregon's tallest mass timber affordable housing tower, McCarthy's completion of Georgia's first mass timber municipal building, and Walmart's new headquarters built from Mercer mass timber are marking 2026 as the year this construction method moves decisively into the mainstream. Mass timber projects require specialized contractors and represent a growing pipeline for firms that develop the expertise now.
University capital programs remain active nationwide, with major projects underway at IU, UW-Madison, KU, UT, and dozens of other institutions. Student housing, science and engineering facilities, and athletic complexes are the most common project types. Private university construction remains robust even where state funding is under pressure.
The housing shortage has created durable demand for affordable and mixed-income housing construction, supported by HUD financing, Low-Income Housing Tax Credits, and state housing programs actively deploying capital. Gilbane's 1,000-unit Norfolk project and dozens of state-funded programs represent a pipeline that is not dependent on private market conditions, even as market-rate multifamily starts have slowed significantly.
This article is based on reporting from the Associated General Contractors of America, ConstructConnect and Deloitte. For more information, visit: https://www.agc.org/
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