AI-rewritten: This is a summary of an article from Tom’s Hardware, rewritten by AI (Qwen, running locally) to make it easier to read. The facts come from the original article – read it for the full story.

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Private data center construction spending reached a record annual pace of $84.95 billion in August, representing a 73% year-over-year increase according to the Census Bureau. This growth marks the fastest rate since April 2025, when spending rose by 88.2%. Data center buildouts now account for approximately 63% of all private office construction, surpassing general office projects which saw spending drop 9.7% year-over-year. The Census report defines data centers as buildings containing hardware for storing, processing, and transmitting digital information, while excluding the value of racks or servers themselves.

The disparity between sectors is significant, with a $39.1 billion gap existing between general office and data center spending, the widest recorded since January 2014. Data centers have outpaced general office construction every month since September 2025. Overall private nonresidential construction fell slightly year-over-year, yet 74% of the monthly rise in this sector was attributed to data centers. Manufacturing also declined, with data center construction now comprising about half its previous size.

Industry experts note that the construction industry’s growth is heavily dependent on these projects. Anirban Basu, chief economist for Associated Builders and Contractors, stated that July’s nonresidential gain was entirely due to data centers, while power construction growth was boosted by their electricity needs. Although server spending is also rising due to AI demand, it is not included in Census figures. Growth has accelerated for four consecutive months, suggesting a strong indicator of future trends as September results are expected later this month.