Walter Bloomberg Says US Data Center Construction Grew at a Record 211% Annualized Pace Even as Total Construction Spending Fell 1.9% in September
US DATA CENTER CONSTRUCTION SURGES AT RECORD PACE DESPITE SPENDING SLUMP US construction spending fell 1.9% in September, but underlying momentum remains strong, supported by AI infrastructure investment. Data center construction surged at a record 211% quarterly annualized pace, with monthly growth of 8–10% over the past four months. Private nonresidential construction rose 1.1%, its fourth consecutive monthly gain, while residential spending dropped 5.5%. Data centers now account for 4.3% of total construction spending, up from 2% in early 2025.
Context
Data centers are now a measurable force in the US economy, growing fast enough to offset a broad slump in construction spending.
The US Census Bureau publishes monthly construction spending data, including a data center category. Annualized three month rates turn a short period's growth into a yearly pace, which exaggerates swings. Walter Bloomberg (@DeItaone) is a headline account, and the charts it shared credit MNI calculations on Census data.
Deep dive
Walter Bloomberg (@DeItaone) posted on Nov 2 that US data center construction is surging at a record pace despite a spending slump. According to the post, US construction spending fell 1.9% in September, but underlying momentum remains strong, supported by AI infrastructure investment.
The post says data center construction surged at a record 211% quarterly annualized pace, with monthly growth of 8 to 10% over the past four months. It adds that private nonresidential construction rose 1.1%, its fourth consecutive monthly gain, while residential spending dropped 5.5%. It also says data centers now account for 4.3% of total construction spending, up from 2% in early 2025.
The attached charts credit the Census Bureau with calculations by MNI, a market news service, so the 211% figure is an analysis of Census data rather than a number published directly by the government. An annualized three month rate takes a short burst of growth and projects it over a year, which is why it can reach a value like 211%. The share figure, 4.3% of all construction, is a steadier sign of how big the category has become.
The data fits other stories in this archive about record US AI investment and a growing power gap for new data centers. Construction is where those plans turn into concrete and steel, and the figures suggest AI building is now large enough to lift a whole sector of the economy.
What to expect next
Watch the next Census construction release to see whether data center spending keeps rising at this pace or cools. Power supply, chip deliveries and local permitting limits could slow it. If the share keeps climbing past 4.3%, AI infrastructure will increasingly shape economic data and policy debates. Rising residential weakness alongside the boom will also draw attention, as economists weigh how much of US growth now depends on AI building.