US Data Center Construction Spending Hits All-Time High
Spending on data center construction surged 46% year-over-year in June to an annualized $68 billion, surpassing office construction by a record $25 billion.
In June, US data center construction spending reached an annualized rate of $68 billion, a 46% increase from a year earlier—the largest 12-month jump on record. The growth has accelerated sharply, with total spending up 158% since January 2024 and more than tripling since 2022.
Meanwhile, office building construction has contracted. Spending declined by over $25 billion since 2022 to roughly $43 billion, the lowest level since 2016. As a result, the gap between data center and office construction has flipped dramatically: data centers now exceed offices by $25 billion, whereas in 2022 offices led by $57 billion.
The surge is attributed to an AI-driven investment wave.
Source: The Kobeissi Letter