US data centre construction spending hits record $96.5 billion amid AI boom

Construction spending on data centres in the United States reached a record annualised rate of $96.5 billion in September 2026, reflecting the growing investment in infrastructure needed to support artificial intelligence (AI) and cloud computing.

According to data from the US Census Bureau, data centre construction spending rose 8.6 per cent from August and was up around 90 per cent compared with September 2025. The figure represents the highest level since the data series began in January 2014.

The latest figures highlight the growing gap between investment in data centres and traditional office construction. While data centre spending continued to climb, office construction spending excluding data centres declined by 8.4 per cent year on year, according to KPMG’s analysis.

The figures point to an increasingly concentrated construction market, with AI-related infrastructure accounting for a large share of the growth in private non-residential projects.

Data centre spending has nearly quadrupled since the beginning of 2024, with year-on-year growth remaining above 60 per cent for four consecutive months. The September increase was also the largest annual rise in a decade, according to the figures cited in the latest market analysis.

Meanwhile, total US construction spending moved in the opposite direction. It fell 1.9 per cent month on month in September to an annualised rate of approximately $2.19 trillion, marking its sharpest monthly decline since April 2020. Spending was also 2.7 per cent lower than a year earlier.

The wider figures suggest that the construction market is experiencing uneven growth. Residential construction spending fell 5.5 per cent during September, while private non-residential construction rose 1.1 per cent. Data centres and power infrastructure accounted for much of the strength in non-residential investment.

The expansion of AI infrastructure is creating demand for new facilities, electricity capacity and supporting equipment. However, rising material costs, labour shortages and pressure on construction supply chains remain challenges for the industry.

The latest figures show how the growing demand for AI computing capacity is influencing investment priorities in the US, even as other parts of the construction sector face weaker conditions.