Data center construction spending surged in July
Data: U.S. Census Bureau, FactSet Construction spending on AI data center "shells" soared in July, rising at an annualized rate of nearly 60% from July 2025 levels. Why it matters: It shows the AI building frenzy was gathering strength this summer, even as — or perhaps because — a bipartisan backlash grows. By the numbers: Data center construction spending jumped to an annual pace of more than…
Construction spending on data centers for AI applications surged in July, according to data released by the U.S. Census Bureau. The annualized rate of growth reached nearly 60% from July 2025 levels, indicating a strengthening momentum in the AI building boom. In July, data center construction spending reached more than $75 billion, representing the value of construction initiated during the month.
This figure pertains solely to the creation of massive warehouse-like structures, or "shells," designed to house servers, processors, memory chips, and fiber-optic connections integral to AI operations. Despite the immense investment in construction, the actual cost of outfitting these facilities with pricier processors and memory chips remains significantly higher.
Estimates suggest that construction costs constitute only about 20% of the total expenses for a data center.
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