August 2026 Construction Spending Rises 0.9% as Data Center Work Surges

U.S. construction spending rose 0.9% in August to a seasonally adjusted annual rate of about $2.2 trillion, beating expectations for a flat month, according to Census Bureau data released October 1, 2026. Data center construction again led the gains, rising 7.5% in a single month Trading Economics CoStar ENR.

This post is based on early coverage of the release. Detailed category tables and revisions should be checked against the official U.S. Census Bureau construction spending release as they are posted.

What the data shows

Trading Economics, citing the Census Bureau, put August spending at $2,203 billion, up 0.9% from July and down 1.7% from August 2025 Trading Economics. It reported private construction up 1.1% and public construction up 0.2% for the month, with private residential up 1.1% and private nonresidential structures up 1.0% Trading Economics. Within private nonresidential, office rose 4.6%, transportation 1.2% and power 0.9% Trading Economics. July was revised to a 0.1% decline, from the 0.5% decline first reported Trading Economics.

CoStar reported residential spending at $882.3 billion and nonresidential spending at $775 billion, up 1% CoStar. Associated Builders and Contractors, as reported by ENR, said national nonresidential spending rose 0.7% to $1.309 trillion ENR. The two nonresidential numbers are not in conflict. The $775 billion figure matches the private nonresidential category, while ABC's $1.309 trillion measure includes both private and public nonresidential work.

Data centers keep pulling away

ABC said data center construction spending jumped 7.5% in August, is more than 73% higher than a year earlier and has grown at a 149% annualized pace since March ENR. "Nonresidential construction spending increased for the fifth consecutive month in August as data center investment accelerates," ABC Chief Economist Anirban Basu said. "Frankly, it's becoming difficult to contextualize the size and speed of this boom" CoStar.

ENR reported that manufacturing spending rose month over month for the first time since January and that several public categories posted gains ENR. Basu expects momentum to stay concentrated in data centers and power as renewed materials and labor cost escalation and higher Treasury yields push up project costs and borrowing, according to ENR ENR.

Why it matters to construction professionals

The August gain breaks a run of soft readings, but the 1.7% year-over-year decline shows the overall market is still below last year Trading Economics. The growth is narrow. Data centers, power and some office and transportation work are carrying the nonresidential numbers, while many traditional commercial categories are not growing at the same pace.

• Owners and developers: Competition for electrical, mechanical and power-related trades remains intense where data center work is active, which can affect bids and schedules on unrelated projects.
• General contractors: A rising headline number does not mean every segment is improving. Backlog quality and sector mix matter more than the total.
• Subcontractors: Electrical, switchgear and power-system trades stand to benefit most, while cost escalation remains a margin risk.
• Western New York firms: National data center growth can tighten equipment and labor markets regionally, even where local demand looks different.

What to watch next

Watch the official Census detail tables for category-level figures and revisions, the next monthly release in early November, and whether manufacturing's August uptick continues. Also watch whether higher Treasury yields and rising input costs, flagged by ABC, begin to slow project starts outside data centers and power ENR.

Bottom line

August construction spending came in stronger than expected, but the gains are concentrated. Data centers are growing at a pace ABC calls hard to put in context, while the overall market remains below last year's level.

Sources

• Trading Economics, citing U.S. Census Bureau: https://tradingeconomics.com/united-states/construction-spending
• CoStar: https://www.costar.com/article/1676729163/construction-spending-climbs-despite-cost-headwinds
• ENR, citing Associated Builders and Contractors: https://www.enr.com/articles/63746-data-center-construction-spending-accelerates-at-149-annualized-pace
• U.S. Census Bureau, Monthly Construction Spending: https://www.census.gov/construction/c30/current/index.html