Data Centers Become Largest Segment of US Office Construction
Data center construction has become the largest segment of US private office construction, reaching an annualized rate of $50.7 billion in April. This surge surpasses traditional office construction, which totaled $43.8 billion, and is driven by significant AI-related investment and hyperscalers' pursuit of global AI dominance. Demand for data centers is strong, with preleasing rates hitting 80%, indicating that construction is struggling to keep pace with market needs. AI
IMPACT Accelerates AI infrastructure buildout, potentially increasing compute capacity and driving further AI development.