The construction industry is on the cusp of a transformative era, with data centers emerging as the epicenter of growth in 2026. Fueled by the relentless demand for artificial intelligence (AI) and massive investment commitments, data center construction is not just a sectoral trend—it’s a seismic shift reshaping the industry’s future.
The momentum is undeniable. In 2025, data center projects kept contractors busy even as other construction segments faltered. Tech giants pledged hundreds of billions of dollars to U.S. data center development, setting the stage for a boom that shows no signs of abating. With credit analysts projecting trillions in global spending tied to data center growth and AI capacity, builders across the country are positioning themselves to capture the next wave of this infrastructure revolution.
AI is reshaping construction in two critical ways: it’s driving demand for new facilities and transforming how contractors operate. “You have it reshaping how contractors are estimating, how they’re doing their scheduling, how they’re managing projects,” said Macrina Wilkins, senior research analyst at Associated General Contractors of America. “But it’s also driving demand for data centers, construction, substations, electrical infrastructure.”
The scale of data center development is creating a “picks and shovels” environment, where firms don’t necessarily need to build the data centers themselves to benefit. Ryan Kunisch, vice president of global product for Oracle, noted that the opportunity extends far beyond the major owners and top-tier builders leading the biggest projects. “You have a small set of large owners who are really driving the demand,” Kunisch said. “But really, the bottom of that pyramid [is a] huge opportunity for the trades, even for, as I mentioned, the logistics to accomplish some of these massive projects.”
This downstream demand includes roads, utility upgrades, substations, energy projects, and logistics work required to support construction and long-term operations. Even contractors that are not traditional data center builders may find opportunities through infrastructure support and regional civil work.
However, optimism is tempered by caution. Some contractors remain wary of becoming overly dependent on one sector, especially as concerns persist about a possible AI bubble and a potential pullback in investment. Will Senner, senior VP of preconstruction for Skanska USA Building and leader of its data solutions team, warned that firms with portfolios heavily tied to data centers could face major disruption if market conditions reverse. “If there are companies out there who have become overly reliant on data centers and it’s become a very significant portion of their portfolio, I think a major pullback in investment, in valuations on AI and data centers could obviously have a very significant impact on their business,” Senner said.
Yet, industry observers believe AI-backed infrastructure is likely to remain a core trend, even if the pace of investment stabilizes or shifts over time. Oracle’s Kunisch said the long-term sustainability of the boom will depend on real-world performance, measurable outcomes, and demonstrated value. “The proof will be in the pudding, so to speak,” Kunisch said. “Meaning that as we start to document the return on investment, look at efficiencies, find areas to avoid the use of AI or even dial back the overarching panacea of promise and get to some real metrics, I think you’ll start to see stabilization in all of this.”
Beyond creating a new construction cycle, AI is also becoming a larger part of how contractors estimate projects, plan schedules, manage risk, and reduce administrative burdens. Builders say the technology is being explored as a response to persistent workforce challenges, labor shortages, and the increasing complexity of managing projects across remote and near-urban environments.
Contractors also say AI tools are becoming more accessible—not just for large firms with big IT budgets, but for everyday users in operations teams. “I think one of the really exciting, but also potentially challenging, components of this AI transformation is the ability to enable everyday users in the business to develop their own solutions,” Senner said. “A lot of these tools are becoming more and more low code or no code, meaning you don’t have to be a data scientist to quickly create your own AI tool or AI agent.”
Industry groups are also trying to ensure smaller and mid-size contractors are not left behind as AI-driven tools become more common across the construction tech stack. “If we’re not moving together as an industry, then we’re not moving forward,” said Sarah Gallegos, senior director of the building division and construction innovation at AGC. Chris Love, AGC’s vice president of association and industry innovation, said adoption will likely remain gradual, but could accelerate as major construction software platforms expand AI-driven features. “There are always going to be people that are more on the bleeding edge, but I think as more of the traditional companies see that and see the success they’re having, and worry about being left