U.S. nonresidential construction activity closed out 2025 on a strong note, with total construction starts reaching $61.8 billion in December, according to newly released data from ConstructConnect. The figure represents a $4.7 billion increase from November’s revised total of $57.1 billion, signaling renewed momentum across several high-value building sectors.
ConstructConnect reported that the month-over-month increase was fueled by significant gains in data center development, sports and convention centers, and school construction, sectors that continue to attract large-scale investment amid long-term demand trends.
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Chief Economist Michael Guckes noted that month-on-month growth was driven by strong performance in key sectors, including Data Centers, Sports and Convention Centers, and Schools.
The latest data coincides with the release of ConstructConnect’s Top 10 Project Starts through December 2025, which highlights the largest nonresidential projects by dollar volume initiated during the month. These developments underscore the concentration of investment in specialized facilities that support technology infrastructure, education, and large public venues.
According to ConstructConnect, square footage measurements do not apply to alteration projects, certain industrial facilities—such as petrochemical developments—or most engineering and civil works, reflecting the capital-intensive nature of many of December’s largest starts.
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December’s increase suggests improving conditions for nonresidential builders as 2025 came to a close, particularly following periods of uneven activity earlier in the year. Data center construction remains a dominant force, supported by cloud computing expansion, artificial intelligence workloads, and long-term digital infrastructure investment. Meanwhile, continued funding for schools and public facilities has helped stabilize institutional construction activity.
ConstructConnect encourages industry professionals to review the January 2026 Construction Economy Snapshot for a deeper look at labor conditions, regional trends, and sector-specific performance shaping the construction outlook entering 2026.
As part of its broader construction intelligence offerings, ConstructConnect provides market data, forecasting tools, and AI-assisted software designed to help contractors, manufacturers, and designers identify opportunities, streamline preconstruction workflows, and compete more effectively. The company operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
With nonresidential starts rebounding in December, industry watchers will be closely monitoring whether early 2026 maintains this upward trajectory amid shifting economic conditions and evolving project demand.
Originally reported by Marshall Benveniste in Construct Connect News.
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