US Data Center Construction Spending Hits Record $85B Annual Rate
August data center construction spending rose 73% year-over-year to a record annualized $85 billion, while general office construction fell 10% to $46 billion.
The latest construction figures highlight a widening split between data centers and traditional office space. Data center spending reached an annualized $85 billion in August, up 73% from a year earlier. That follows a 65% year-over-year increase in June and is the largest annual gain since April 2025.
Since the start of 2021, data center construction spending has risen by $76 billion, or 823%.
General office construction moved in the opposite direction. August spending fell 10% year-over-year to $46 billion, the fifth-lowest level since December 2015. Since the start of 2023, general office construction spending has dropped by $25 billion, or 35%.
As a result, the gap between data center and general office construction spending widened to a record $39 billion, with AI-related investment cited as a key driver.
Source: The Kobeissi Letter