Cost index
Q2 2025 Construction cost escalation outlook
Construction costs continue to shift across the U.S. as market conditions evolve. Our Q2 2025 outlook (April–June) shows projected year-on-year changes in output costs for key cities as percentages.
The CBI comparative construction cost index, with Washington, DC set as the base (100), tracks labor rates, material prices, and market activity in each location. The indices can be interpreted as follows: a general construction project costing $5,500,000 in Washington, DC would cost $8,635,000 in New York, for example. The infographic below highlights major ongoing and upcoming projects in selected cities.
As of May 2025, energy construction is rising across the U.S. Electricity demand is growing, especially from AI data centers. A nationwide push for clean energy is also driving this trend.
Here are some major projects that have started or are now underway:
Callahan County, TX
Enbridge is moving forward with the Sequoia Solar Project. This 815-megawatt photovoltaic power facility will help meet growing demand for low-carbon electricity in Texas and across the U.S. The project is about 150 miles west of Dallas and will cost $1.1 billion. It will be one of the largest solar farms in North America.
Enbridge plans to finish the project by the end of 2026. When complete, it will add a large amount of clean energy to the region. This will help cut greenhouse gas emissions and make the power grid more reliable.
This investment shows that Enbridge is committed to renewable energy and a cleaner future.
Offshore Ocean City, MD
The Maryland Offshore Wind project by US Wind now has final federal approval. Construction will start soon. Full completion is expected by 2030.
This major clean energy project will generate up to 2,200 megawatts of power for the Delmarva Peninsula. That is enough to supply more than 718,000 homes.
This project offers more than just environmental benefits. It will give a strong boost to the local economy. During its seven-year construction phase, it will support about 2,680 jobs each year.
The Maryland Offshore Wind project is a key step in growing clean energy in the U.S. and creating new jobs in the region.
Offshore Barnstable, MA
Avangrid is leading the New England Wind 1 Project. It will produce up to 791 megawatts of clean power. That is enough to supply about 400,000 homes and businesses. The project will cut emissions equal to removing 300,000 gas-powered cars from the road each year.
It will also boost the economy. The project will create more than 4,400 full-time jobs and bring $3 billion in local investment. It includes a new marshaling port in Salem, MA, and an offshore wind factory in New Bedford, MA.
Construction will begin in 2025. Most spending will take place between 2027 and 2029. Full commercial operations are expected by 2029.
Calistoga, CA
The Calistoga Resiliency Center is set to open this year. It will improve backup power and wildfire safety in the area.
The facility uses hydrogen fuel cells and lithium-ion batteries. Together, they give clean backup power for up to 48 hours. At full strength, the system can produce 8.5 megawatts. It turns on automatically during planned shutoffs, which help stop wildfires by cutting a key ignition source. This keeps homes, businesses, and vital services running during outages.
The center uses green hydrogen to supply clean and reliable power and is a strong step toward a safer and more sustainable future.
Other notable high-tech projects include:
Sunfish Solar 2 – Calhoun county, MI
The project, developed by Consumers Energy and Hecate Energy, will start in early 2025. It aims to strengthen the electric grid and provide clean energy to local businesses.
Sunrise Wind – Offshore Long Island, NY
This project has a capacity of 924 megawatts. Onshore construction began in 2023, and offshore work is underway. The project is expected to start operating by 2027. It is the first U.S. offshore wind project to use High Voltage Direct Current (HVDC) technology. This technology improves efficiency over long distances.
National Renewable Energy Laboratory (NREL) – Golden, CO
In 2025, the National Renewable Energy Laboratory (NREL) will start building a new research facility. This center will focus on developing the next generation of clean energy technologies.