Construction spending, not adjusted for inflation, totaled $2.14 trillion in May at a seasonally-adjusted annual rate, down 0.1 percent from the upwardly revised April rate, but up 6.4 percent year-over-year, the U.S. Census Bureau reported, as an 0.5 percent increase in public spending was offset by declines in private nonresidential (-0.2 percent) and nonresidential spending (-0.3 percent), according to an analysis by Associated General Contractors of America (AGC).
Following requests from AGC, the U.S. Census Bureau began posting estimates for data centers with monthly estimates back to 2014, though the figures are still included in the office total and visible only in historical data. That series shows data center outlays rose for the 12th consecutive month in May, up 1.6 percent month-to-month and 69 percent year-over-year, while other private office spending fell 3.2 percent and 18 percent, respectively. The bureau also posted its annual revision of past years’ monthly data, along with detailed annual totals for 2023 including a breakout of annual spending on private power, which showed spending on wind projects fell 10 percent in 2023, while other projects including solar, dry-waste, and geothermal projects jumped 26 percent.
Macrina Wilkins, senior research analyst at AGC, says, “Construction spending showed moderate growth, increasing 6 percent year-over-year in May. What really stands out, however, is data centers and how this category’s growth has had a substantial impact on total construction spending overall. Total private office spending declined 1.7 percent from last May, but the data center portion grew an astounding 69 percent.”
