U.S. data center construction spending hit a record $85 billion annual pace in August 2026, up 73% year-over-year, driven by AI infrastructure demands.

Private data center construction spending reached $84.95 billion in August on an annualized basis, up 73% from $49.05 billion year-over-year, according to the Census Bureau's detailed construction spending tables. The increase represents a record annual pace, marking the fastest growth rate since April 2025's +88.2% surge. Data center construction now accounts for approximately 63% of all private office construction spending.

The Census Bureau defines data center construction as "buildings that contain the hardware needed for storing, processing, and transmitting digital information," categorizing it as a subcategory of private office construction. The agency's figures exclude any value attributable to "racks or servers in data centers." The data measures the Value of Construction Put in Place on a monthly basis, annualized to project full-year spending at the current pace. Power plants and transmission lines built to support data center power demand are tallied separately under the Census power category. The report does not address the underlying drivers of the spending increase.