Construction Spending On Data Centers, Factories, Powerplants, And Office Buildings: Boom, Bust, And In Between

Data center construction spending skyrocketed in 2025, fueled by the AI investment boom, reaching $41 billion, a significant increase from previous years. This spending doesn't include the cost of servers but covers building-related infrastructure such as cooling systems. Factory construction also surged, reaching $220 billion in 2025, driven by a shift towards domestic production and automation. Within these factories, spending on computer, electronic, and electrical equipment plants experienced an enormous increase. Power plant construction hit a record $158 billion in 2025, due to increased electricity demand from data centers and other sectors. This surge is coupled with concerns about potential overbuilding if the AI boom subsides. Office building construction, however, has plummeted, reaching its lowest point since 2015 at $49 billion as demand for office space fell. Inflation is impacting nonresidential construction costs, particularly with a recent jump in January. The immense capital expenditures planned for 2026 by major tech companies further indicate continued growth. Potential bottlenecks and shortages, like power infrastructure, could pose challenges to these construction surges. This analysis highlights diverging trends within the construction sector, with some areas booming while others decline.