Construction trends
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The U.S. data center construction market is growing rapidly as demand for digital transformation and cloud services increases. There is also a stronger focus on building eco-friendly centers to cut carbon footprints and meet sustainability rules. Edge computing and edge centers are gaining traction for their ability to reduce latency and enable data-driven decision-making. By 2029, the U.S. data center construction market is expected to reach $47.72 billion, growing at a compound annual growth rate (CAGR) of 10.8% between 2024 and 2029, with a market size increase of $15.02 billion during this period. As demand continues to rise, adaptive reuse is emerging as a viable strategy to repurpose existing structures for data centers, offering a sustainable and cost-effective solution. We explored this approach in our insight paper on how adaptive reuse could reshape data center growth.
Source: Technavio.com | Arizton.com
Data centers have experienced a construction surge across the U.S. in recent years.
Commercial office construction activities and spending are expected to slow down in 2025.
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Construction spending fell in retail, lodging, and other commercial sectors, while office spending saw only a slight rise. This increase primarily comes from data center projects, which the U.S. Census Bureau classifies as offices. The commercial office sector is projected to see only a 1.7% increase in construction spending in 2025, while traditional office space construction remains weak due to high vacancy rates and the ongoing prevalence of remote work.
Source: AIA.com