US Data Center Construction Costs Soar Amid Accelerated Demand

Data center construction has seen a significant surge in recent years, with the year-to-date total already surpassing last year's full-year figure. According to ConstructConnect, data centers have become a massive part of the US construction industry, totaling $81.5 billion in starts just through June 2026.

The acceleration and continued momentum in Data Center construction starts show how quickly capital is materializing to build out these facilities. However, that demand, along with broader geopolitical factors, has pushed up the cost of construction.

Electrical systems have seen some of the steepest data center construction input price increases, with copper wire increasing 17.9% compared to year-ago levels. Other key inputs, such as HVAC and commercial refrigeration equipment, have also risen, with a 4.5% increase over the past year.

The largest category, electrical systems, account for 48-54% of construction costs, followed by mechanical systems at 22-33%, and core and shell at 9-14%. General contractor fees make up the remaining 10% in both air- and liquid-cooled facilities.