Data Center projects have been helping fuel construction across the country, but that activity is slowing down slightly.
The Cincinnati-based online industry analyst ConstructConnect reported that data center construction starts reached a value of $9.4 billion in September. Starts measure the dollar value of new projects that have broken ground.
The September figure is less than half of August’s $25.9 billion. However, the August figure was a record, which would be hard to surpass.
According to the same report, the September decline lowered the 12-month moving average of data center starts slightly to $14.9 billion.
Although contracting, data center starts are still on a torrid pace, with a year-to-date value of $135.8 billion. That exceeds the $89 billion value that Construct Connect reported for all of last year by about 50%. For its part, 2025’s total value of data center starts was about three times greater than 2024, and that year was about double the number for 2023.
The cost of data center construction is also on the rise. According to ConstructConnect, the median data center construction cost reached $540.96 per square foot from January through September 2026, up 31% from a year earlier as costs rose faster than project size.
Data center starts currently account for slightly more than one-quarter (27%) of the total value of nonresidential building construction starts for the year. That’s about three times the share in 2025.
ConstructConnect notes that the value of data center construction starts is heavily concentrated in eight states, with Texas leading the way at $22.6 billion. The next closest state is Pennsylvania, with $17.4 billion. It is followed by Virginia, North Carolina, Illinois, Arkansas, Indiana and Michigan.
About The Author
LAEZMAN is a Los Angeles-based freelance writer who has been covering renewable power for more than 10 years. He may be reached at [email protected].