Data Centers and AI Drive Construction Momentum

On April 8, 2026, Associated Builders and Contractors (ABC) presented a forecast webinar in which chief economist Anirban Basu said construction growth is expected to continue through 2026, but the pattern is uneven. Investments from hyperscale cloud and AI operators are sustaining momentum while broader hiring and activity soften.

The current construction cycle is bifurcated. Hyperscalers (explicitly named: Amazon and Meta) are driving large, capital-intensive data center and AI facility projects that require specialized power, cooling, and buildout schedules. Those projects create outsized regional demand and support suppliers of critical infrastructure (electrical distribution, power conversion, racks, and specialized mechanical systems). Simultaneously, baseline commercial and industrial construction faces weakening hiring and softer openings, constraining broader sector expansion.

ABC projects continued growth through 2026 but flagged two material risks. First, material prices remain elevated, the U.S. Bureau of Labor Statistics documents sharp increases in many material costs since the pandemic, which drags margins and slows project starts. Second, labor demand is cooling: hiring and activity across the industry have softened and job openings have fallen, compressing near-term capacity. Despite those headwinds, hyperscaler-led data center and AI investments are concentrated drivers of current activity.

For ML and infrastructure teams, these dynamics matter operationally and strategically. Ongoing hyperscaler buildouts signal continued capacity expansion for large-scale AI workloads, but they also heighten competition for power and skilled trade labor locally. For contractors, suppliers, and infrastructure planners, elevated material prices and labor softness change bid strategies, contingency planning, and project timing. For platform architects and enterprise ML teams, expect regional capacity constraints and longer lead times for custom colocation or on-prem builds.

follow hyperscaler capex announcements, regional power availability and permitting timelines, and material-price indices from the BLS. Monitor how supply-chain and labor trends affect project schedules and total cost of ownership for AI infrastructure.