Updated
Updated · Finance and Commerce · Jul 17
US Construction Outlook Improves as Nonresidential Starts Jump 19% on 244% Data Center Surge
Updated
Updated · Finance and Commerce · Jul 17

US Construction Outlook Improves as Nonresidential Starts Jump 19% on 244% Data Center Surge

3 articles · Updated · Finance and Commerce · Jul 17

Summary

  • Construction employment rose 8.8% from a year earlier in 2026, with AGC saying the industry has outperformed expectations as nonresidential hiring and project demand strengthened.
  • Nonresidential building starts climbed 19% year to date, led by a 244% leap in office and data center projects; commercial starts rose 74% and total construction starts gained 6.4% through May.
  • Data centers remain the main engine, with spending running near $50 billion a month and sector growth reaching 28% year over year in April.
  • Contractors still face rising costs — diesel fuel was up 74% year over year — alongside higher prices for steel, copper, aluminum, trucking and other transport services after tariffs and energy shocks.
  • Residential starts fell 20% and some Wisconsin communities have pushed back on large data center projects, even as power, water, sewage, military and healthcare construction show broader growth beyond megaprojects.

Insights

How will America balance local environmental concerns with the national need for more AI data centers?
As community pushback derails billions in projects, can the construction industry's explosive growth actually last?