Nonresidential Spending Flat in January as Data Centers Surge

This ABC analysis of U.S. Census Bureau data covers January nonresidential construction spending, which came in essentially flat at $1.245 trillion on a seasonally adjusted annualized basis. Private nonresidential spending declined for the fourth consecutive month. The one exception: data center construction, which posted a sharp increase. Public spending provided most of the stability. The piece is useful context for GCs tracking where bid opportunities are concentrating sector by sector.

Four straight months of private nonresidential softening is not noise. It’s a signal that owners are slowing commitments, which means the project pipeline for mid-market GCs is thinning in most categories outside hyperscale tech. The data center spike is real, but that work is concentrated in a small group of qualified contractors with the MEP depth and security clearance infrastructure to compete. Most GCs chasing that sector are chasing a door that’s already closed. The smarter move is to look hard at what public spending categories are still moving and get subcontractor coverage in place before those bids hit the street.

Read the full story at Construction Executive.