# Data Centers Become Largest Segment of US Office Construction — retained record

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source: [news](https://highsignal.app/data/news) (news:datacenterknowledge)  published 2026-06-03 16:00 ingested 2026-06-04 09:47

[original source ↗](https://www.datacenterknowledge.com/build-design/data-centers-become-largest-segment-of-us-office-construction)

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Data Centers Become Largest Segment of US Office Construction
New Census data showed that data center construction reached an annualized rate of $50.7 billion in April, surpassing general office construction.
Data centers have become the largest segment within US private office construction, according to newly released US Census Bureau data showing spending on data center projects reached a $50.7 billion seasonally adjusted annual rate (SAAR) in April.
That figure surpassed general office construction, which totaled $43.8 billion SAAR in April. Together with financial office construction, the categories traditionally associated with office development remained smaller than data center construction alone. Total private office construction spending reached $97.4 billion SAAR, with data centers accounting for roughly 52% of that activity. Financial office construction totaled $2.5 billion SAAR.
The crossover reflects both the surge in AI-related investment and the continued weakness of the traditional office market, according to Anirban Basu, chief economist at Associated Builders and Contractors.
"The fact that data center construction spending exceeds that of traditional office spending reflects both the magnitude of the artificial intelligence investment supercycle and a lagging office market hampered by still pervasive remote work and elevated project financing costs," Basu said.
The figures come from the Census Bureau's Value of Construction Put in Place survey, which now breaks out data centers as a separate category within private office construction.
Data Centers Now 52% of Private Office Construction
The Census Bureau only recently began publishing data centers as a standalone category within private office construction in its Value of Construction Put in Place survey, allowing clearer tracking of capital flowing into facilities built to support cloud and AI workloads. Before the breakout, data center development was largely hidden within broader office construction statistics.
The April data show that data center construction spending climbed from $39.8 billion SAAR in April 2025 to $50.7 billion SAAR in April 2026, a gain of roughly 27%. General office construction increased from about $39.2 billion to $43.8 billion over the same period, but remained below data center spending. The figures illustrate how quickly AI infrastructure has become a major driver of office-related construction.
Unlike many commercial real estate projects, data center development is less exposed to borrowing costs because much of the investment comes from hyperscalers with substantial cash reserves and operating cash flow.
"Data center construction is less impacted by high materials and borrowing costs because so much investment is financed by the free cash flow of hyperscalers, who are desperately pursuing global AI dominance," Basu said.
Preleasing Hits 80% as Demand Outpaces Supply
While data centers now lead private office construction, they remain smaller than several other major private nonresidential categories tracked by the Census Bureau. Manufacturing construction totaled $184.5 billion SAAR in April, followed by power construction at $148.7 billion and commercial construction at $116 billion. Health care construction reached $53.7 billion, placing it just ahead of data centers among major categories.
"This shift marks a milestone in terms of the digital infrastructure buildout in the U.S.," said Gordon Dolven, CBRE's Head of Data Center Research for the Americas. He said the growth reflects years of expanding demand for digital services, from internet search and streaming platforms to cloud applications and artificial intelligence.
Demand indicators remain strong. Dolven said roughly 50% of data centers under construction in primary US markets were preleased in 2020. Today, he said, the figure stands at 80%.
"Not only are we seeing record-level construction, but we are also seeing incredibly robust demand signals from the market," Dolven said.
The spending boom is also expanding opportunities for contractors and specialized trades.
"It is perfectly conceivable that AI-related investment will be greater next year, fueling even greater activity among many large general contractors, electrical contractors offering talent capable of precision wiring, and sophisticated HVAC contractors," Basu said.
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