Investment in the construction of U.S. data centers reached approximately $70 billion in 2025, according to analysis from commercial real estate firm CBRE. This represents a significant surge, more than doubling the investment levels seen in 2022. The explosive growth is primarily attributed to demand from artificial intelligence (AI) companies and cloud service providers requiring advanced computing infrastructure.
This boom in data center construction occurred against a backdrop of stagnation in the broader U.S. nonresidential building sector. Overall spending on nonresidential construction showed minimal growth through 2025, with high interest rates and economic uncertainty dampening investment in other commercial and institutional projects.
The surge has created intense competition for power and land, particularly in established data center hubs like Northern Virginia. Developers are increasingly looking to secondary markets with available power capacity. The sector's rapid expansion is expected to continue, though it faces challenges related to energy consumption and supply chain constraints for critical components like transformers and switchgear.
