US Data Center Construction Spending Jumped 90% Year Over Year in September to a Record $96.5 Billion
BREAKING: US data center construction spending jumped +90% YoY in September, to a record annualized rate of $96.5 billion. This also marks the largest YoY increase in 10 years. This figure is now risen more than +60% YoY for 4 consecutive months. Since the start of 2024, data center construction spending has nearly quadrupled. Meanwhile, general office construction spending fell -8% YoY in September, to $46.0 billion, near its lowest level since January 2016. This brought the gap between data center and general office construction spending to a record $50.5 billion. Overall, US construction spending fell -1.9% MoM in September, its biggest monthly decline since April 2020. The AI infrastructure buildout is transforming the US economy.
Context
It puts a hard number on how fast the AI buildout is growing while overall construction and office building shrink.
The Kobeissi Letter says US data center construction spending rose 90% year over year in September to a record annualized $96.5 billion, the largest yearly increase in 10 years, while office construction fell 8% and total construction spending fell 1.9% from August. The original government release was not opened, so the figures are as relayed.
What to expect next
Watch the next monthly construction spending release to see whether the pace holds.