Data center construction is set to experience significant growth, according to new data from FMI Corp., a construction forecasting firm based in Raleigh. Spending on data center projects is projected to increase by 23% in 2026, in stark contrast to a slowdown in other sectors such as offices, hotels, apartments, and warehouses.
As the demand for digital infrastructure intensifies, the data center sector’s share of total nonresidential building is expected to exceed 6% by 2026, a notable rise from just 2% three years ago. This growth underscores a marked shift in construction priorities as businesses and service providers adapt to the increasing need for data storage and processing capabilities.
The acceleration in data center development reflects broader trends in technology and cloud computing services, which have seen explosive growth during the past few years. Companies are investing heavily in data infrastructure to support remote work, e-commerce, and the Internet of Things, all of which require robust and reliable data management systems.
While traditional building sectors face a decline, data centers are capitalizing on a landscape defined by digital transformation. The construction industry is witnessing a reallocation of resources toward this burgeoning field, indicating a long-term trend that could reshape the market.
As organizations shift their focus to digital services, the construction of data centers is now a strategic imperative. Developers are likely to prioritize these projects to meet rising demand, which is prompting a reevaluation of investment strategies across the sector.
The increasing reliance on technology and digital solutions has made data centers a critical component of modern infrastructure. As spending continues to rise, stakeholders in the construction industry and beyond are closely monitoring these developments to understand their implications for the future of nonresidential building.
Overall, as other construction sectors slow down, data centers are emerging as a key area of growth in the United States, reflecting the changing dynamics of both the economy and technological advancement. This trend is poised to influence construction practices and investment decisions for years to come.