The surge in spending on the physical facilities needed for generative AI has propelled the expansion of the US data hub market to a historic high. The sector’s quarterly annualized growth rate reached 211%, increasing its share of the nation’s total construction spending to 4.3% from 2% at the start of 2025.
This growth follows a general decline in the building sector, with total US construction spending falling 1.9% in September to an annualized $2.186 trillion, the largest monthly contraction since April 2020. While private nonresidential construction rose 1.1% for the fourth consecutive month, spending on private residential projects dropped 5.5%.