Latest construction data shows that industry activity is beginning to break away from the single driver of the data center boom.

Latest Construction Data Shows Industry Activity Beginning to Diversify Beyond Data Center Boom

Although the data center construction boom continues to dominate the US construction industry, the latest economic data from April 2026 suggests that industry activity may be starting to find a footing in other areas. According to reports from multiple agencies, planning activity has improved, overall construction starts have risen, backlogs have reached a 10-month high, and job openings have climbed to their highest level since 2026. However, much of the industry's momentum still flows through familiar channels—data centers and public infrastructure projects.

Planning and Starts: Data Centers Remain the Main Engine, but Early Signs of Diversification Emerge

According to data from Dodge Construction Network, nonresidential building planning accelerated in April after a slow start to the year. Data centers remain the largest driver of planning growth, but notably, starts data show that beyond a handful of data center and energy megaprojects, more types of projects are beginning to break ground. This marks the beginning of a spread in industry activity away from the highly concentrated data center sector.

Backlogs and Employment: Large Contractors Dominate, Labor Market Tightens

A report from Associated Builders and Contractors (ABC) indicates that construction backlogs rose to a 10-month high in April, driven by AI-related projects. However, growth is heavily concentrated among large contractors with data center contracts. Meanwhile, job openings rose 10.6% month-over-month to their highest point in 2026, while the layoff rate fell to a four-year low, indicating that contractors are striving to retain existing workers. The tight labor market could constrain future project execution.

Spending and Prices: Public Infrastructure and AI Projects Support Growth, Material Costs Surge

In terms of construction spending, data center spending surged 28% year-over-year, becoming the main pillar of nonresidential construction spending. Overall nonresidential construction spending rose only 0.1% month-over-month in April, with ABC Chief Economist Anirban Basu noting that growth momentum in other areas is "hard to find." Public infrastructure and AI-related projects accounted for the majority of spending growth, while private sector construction, such as manufacturing, continued to weaken.

On material costs, input prices rose sharply month-over-month in April, driven primarily by energy and tariff-sensitive materials. According to ABC data, the increase in input prices over the first four months of 2026 has already exceeded the total increase of the past three years. This trend is putting cost pressure on contractors and may affect project margins.

Industry Impact and Outlook

These data suggest that the US construction industry is undergoing a technology-driven transformation: data centers and AI infrastructure are the most active market segments currently, but other areas—such as public infrastructure—are also providing support. However, the weakness in private nonresidential construction (especially manufacturing) and the continued rise in material costs represent major risks facing the industry.From a longer-term perspective, this trend reflects that global infrastructure investment is increasingly concentrating on digitalization and energy transition. The advancement of urbanization and the demand for industrial modernization will further drive the construction of data centers, smart grids, and transportation infrastructure. However, if material costs cannot be effectively controlled, or if labor shortages continue to worsen, industry growth potential may be suppressed. Overall, the U.S. construction industry is transitioning from a data center "single engine" to a "multi-engine" model, but this process still requires time.

It is worth noting that the above analysis is based on data from multiple institutions released in April 2026, including Dodge Construction Network, Associated Builders and Contractors, and others. The original report can be found in Construction Dive's summary coverage.