As artificial intelligence transforms computing, the need for faster and more powerful processing infrastructure expands. The industry is responding by investing heavily in new data center development.

According to recent figures published by industry analyst ConstructConnect, Cincinnati, spending on data center construction is way ahead of last year. Investment in the month of August, the most recent month for which statistics are available, helped spending for the first eight months of 2025 reach $40 billion, nearly double the $26.9 billion spent in all of 2024.

The $13 billion spent in August helped 19 new data center projects break ground. This increased the year-to-date (YTD) figure for new projects to 149 and the trailing twelve-month (TTM) count to 210.

ConstructConnect attributes most of the month’s spending to a single $11 billion Amazon data center campus in Virginia. The state is the national and global leader in data centers. Often referred to as “data center alley,” it is home to nearly 650 facilities, with more on the way.

ConstructConnect notes that growth in August was accomplished against some headwinds. The average cost of a data center project has increased significantly from $426 million to $499 million over the last 12 months. And the average cost per square foot has risen even more dramatically, from $665 to $977, an increase of 47%.

Still, the pace continues. ConstructConnect notes that the August figure is 75% and 400% greater than the same figure for August of 2024 and 2023, respectively.

Most of the data center development is occurring in the southern states, where projects represent more than half (57.1%) of the total value of facilities being built. Virginia is joined by Louisiana and Texas as the top spending states.