More evidence that data centres are propping up US construction spending

That’s according to the latest analysis of new government data.

Overall construction spending dropped 0.1% in June from the previous month and declined 3.2% compared to a year ago, according to analysis by the Associated General Contractors of America.

Private non-residential construction increased 0.1% in June but was 4.7% down compared to June 2025.

Private office construction, which includes data centres rose 2.8% in June and 15.1% on a year ago. But within that, data centre construction increased 46% over the past 12 months, while private office construction excluding data centres actually fell 11.6%.

There was a similar story of decline in other private non-residential subsegments: commercial construction was 5.3% lower than a year ago in June, while healthcare construction fell 4.6% and educational construction declined 4.3%.

Meanwhile, private residential construction declined 0.3% month on month in June and was 4.7% down compared to June 2025.

Pubic construction was flat in June and 1.7% higher than a year earlier. The largest public category was 0.1% down on May but 3.1% higher than a year earlier.

AGC director of market insights Macrina Wilkins said, “We’re beginning to see weakness spread across much of the construction market. While data centres and a handful of other segments remain bright spots, the largest public category—highway construction—is at risk of a sharp decrease if Congress fails to renew federal funding before the current law expires at the end of next month.”

Associated Builders and Contractors (ABC) noted that spending was up on a monthly basis in eight of 16 non-residential categories but that private non-residential spending was down nearly 5% on a year ago.

ABC chief economist Anirban Basu said, “Despite an ongoing data centre construction boom, private non-residential construction spending has declined to a seasonally adjusted annual rate of $745.3 billion since the April 2025 peak, which translates into a decline exceeding 7%.

“Tellingly, private non-residential construction spending excluding data centres fell 0.6% in June 2026 and is down 7.9% year over year.

“Meanwhile, data centre construction was up 7% in June and up 46% from a year ago. Contractors working on data centres continue to benefit from this momentum. According to ABC’s latest Construction Backlog Indicator, the 13% of ABC members under contract to work on data centres have significantly higher backlog (11.0 months) than the 87% that are not (8.5 months).”