Construction analysis
Tracking the Trends: Where Projects are Taking Off
Q3 2025 location indices and construction escalation outlook
Construction costs continue to shift across the U.S. as market conditions evolve. Our Q3 2025 outlook (July–September) shows year-on-year changes in output costs for key cities. These changes are shown as percentages.
The CBI cost index compares markets using Washington, DC, as the base (set at 100). It tracks labor rates, material prices, and market activity in each location. The index shows how costs differ from one market to another. For example, a project that costs $5.5 million in DC would cost $8.6 million in New York.
The infographic highlights major ongoing and upcoming projects in selected cities.
Phoenix, AZ
CBI cost index: 115
Escalation: 5-7%
The Greater Phoenix area is seeing a sharp rise in construction activity, with major developments underway in chip fabrication and data centers.
TSMC: Advanced semiconductor expansion TSMC is moving ahead with its third chip plant in North Phoenix. Construction began in April 2025 on a 1,100-acre site. The facility will produce chips using 2nm and 1.6nm technology, including N2 and A16 process nodes. The site will also launch TSMC’s first group of process technician apprentices and welcome its second class of facilities apprentices. Volume production is expected to begin by 2030
LG Chem: Cathode material facility nears completion
LG Chem is finishing its $5.5 billion plant in Queen Creek. The site will make cathode materials for electric vehicle batteries. Production is set to begin in late 2025. Once running, it will support the growing EV supply chain across North America.
Edged Energy: Data center campus in Mesa
In August 2024, Edged Energy started work on a new data center in Mesa. The site is close to Phoenix-Mesa Gateway Airport. The $200 million build will cover 210,000 square feet. It’s designed to deliver 36 megawatts of power. It’s expected to open by late 2025 and add 150 jobs.
Aligned Data Centers: PHX-13 Facility Launch
In April 2025, Aligned Data Centers began building its PHX-13 facility in Glendale. The $500 million project is the first of four planned data centers on a 100-acre site. Phase one will deliver 72 megawatts. It uses modular and sustainable methods. Completion is expected in 2026.
Edged Energy: Data center campus in Mesa In August 2024, Edged Energy started work on a new data center in Mesa. The site is close to Phoenix-Mesa Gateway Airport. The $200 million build will cover 210,000 square feet. It’s designed to deliver 36 megawatts of power. It’s expected to open by late 2025 and add 150 jobs.
Aligned Data Centers: PHX-13 Facility Launch In April 2025, Aligned Data Centers began building its PHX-13 facility in Glendale. The $500 million project is the first of four planned data centers on a 100-acre site. Phase one will deliver 72 megawatts. It uses modular and sustainable methods. Completion is expected in 2026.
Cedar Rapids, IA
CBI cost index: 98
Escalation: 3-6%
Cedar Rapids is emerging as a data center hub in the U.S. Midwest. Google and QTS have both announced projects on a shared 1,391-acre site. Together, they plan to invest more than $1.3 billion and create hundreds of jobs. Google’s facility will cost $576 million, while QTS expects to spend over $750 million. Both sites were approved in January and are set to open in 2026.
Austin, TX
CBI cost index: 95
Escalation: 3-6%
Construction is picking up across the Austin–Round Rock–Taylor corridor in 2025, especially in tech and data infrastructure. Sabey Data Centers began building a 54 MW site in Round Rock this August. It's a major step for the region’s growing digital network.
Samsung is also expanding its chip campus in Taylor. Crews are working on groundwork and vertical builds. The project is drawing skilled trades, including cleanroom builders, pipefitters, and MEP technicians.
More data centers are planned in nearby Hutto. These could add 600 MW of new capacity. With so much building at once, demand for labor, materials, and subcontractors is rising across Central Texas.
Columbus, OH
CBI cost index: 98
Escalation: 4-5%
Intel: Ohio One fab begins vertical build
Intel’s $28 billion Ohio One fab campus began vertical construction in 2025. It includes two buildings with 2.5 million square feet in total. That includes 600,000 square feet of clean-room space. The site is expected to start operations between 2030 and 2032.
John Glenn Columbus International: New terminal underway
In late 2024, work started on a new terminal at John Glenn Columbus Airport. The $2 million project is set to open in 2029 and will improve the passenger experience.
Industrial growth and labor shortages
Industrial buildings are growing fast in Columbus. Demand for logistics and manufacturing is driving new projects. In Q2 2025, eight sites broke ground, adding 1.16 million square feet of warehouse space.
At the same time, big data centers and chip plants are under construction. These projects are raising demand for skilled trades, especially electricians, steelworkers, and pipefitters. With many builds underway, labor shortages could cause delays or cost increases.