{"id":887242,"date":"2026-01-23T21:13:30","date_gmt":"2026-01-24T03:13:30","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/23\/breaking-down-the-data-center-opportunity-for-builders-in-2026\/"},"modified":"2026-01-23T21:13:30","modified_gmt":"2026-01-24T03:13:30","slug":"breaking-down-the-data-center-opportunity-for-builders-in-2026","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/23\/breaking-down-the-data-center-opportunity-for-builders-in-2026\/","title":{"rendered":"Breaking down the data center opportunity for builders in 2026"},"content":{"rendered":"
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\n This audio is auto-generated. Please let us know if you have feedback<\/a>.\n <\/p>\n<\/p><\/div>\n

It\u2019s no secret that data center construction was the beating heart of the building industry in 2025.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Last January, a collection of tech giants committed <\/span><\/span><\/span><\/span><\/span><\/span>up to $500 billion<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> to build data centers across the U.S. Throughout the year, the so-called Stargate initiative kept pace on its <\/span><\/span><\/span><\/span><\/span><\/span>project planning pipeline<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, announcing buildouts in Texas, New Mexico, Ohio and the Midwest.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

For builders, these multibillion-dollar builds <\/span><\/span><\/span><\/span><\/span><\/span>have been a bright spot<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in an otherwise languishing construction industry. Large public builders have touted data centers as a <\/span><\/span><\/span><\/span><\/span><\/span>focus for their construction units<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, per their earnings calls. These projects also <\/span><\/span><\/span><\/span><\/span><\/span>propelled construction planning numbers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> higher to end the year, and many builders believe that data centers will continue to be <\/span><\/span><\/span><\/span><\/span><\/span>one of the biggest trends of 2026<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Indeed, the projected numbers for the AI infrastructure buildout are staggering. Credit ratings agency Moody\u2019s now <\/span><\/span><\/span><\/span><\/span><\/span>projects $3 trillion in global spending<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> over the next five years to keep pace with rapid data center expansion and AI capacity demand.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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Data center investments are projected to increase<\/h4>\n

Moody\u2019s projects $3 trillion in spending over the next five years for data center expansion.<\/p>\n<\/div>\n

Alongside projected business demand for data center construction, however, contractors also believe AI will <\/span><\/span><\/span><\/span><\/span><\/span>fundamentally change their businesses<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, according to a survey from Dodge Construction Network. Investors think so, too: AI-based technologies, along with robotics, <\/span><\/span><\/span><\/span><\/span><\/span>nabbed $2.22 billion<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in built environment funding through the end Q3 2025, according to a report from Nymbl Ventures. Those dollars and demand for data center projects continue to roll in, even as <\/span><\/span><\/span><\/span><\/span><\/span>fears of a possible AI bubble persist<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

So what exactly does the deluge of data center projects, and the push for AI adoption, mean for construction at the end of the day?\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Is this simply another building boom, where contractors will literally lay foundations \u2014 for a price, of course \u2014 and walk away once those facilities are built? Or does it represent an opportunity for the construction industry to fully embrace technology in the <\/span><\/span><\/span><\/span><\/span><\/span>ongoing AI arms race<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Experts say the answer is affirmative for both.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

While some builders will leverage the boom into lucrative construction contracts to manage the work, other firms can get in on the infrastructure, the power plants, the roads and a plethora of other tangential buildouts needed to support the work, industry experts told Construction Dive.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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\u201cAs the U.S. works to expand grid capacity to support energy-intensive AI workloads, a significant share of related work is occurring around the data center rather than within the building footprint, creating opportunities for smaller civil, utility, and specialty firms to participate.\u201d<\/p>\n

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Macrina Wilkins<\/p>\n

Senior research analyst, Associated General Contractors of America<\/p>\n<\/div>\n<\/div>\n

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At the same time, the AI technology fueling the boom presents opportunities for builders to catch up to other industries and leverage technology to their advantage.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

A double-edged game changer<\/span><\/span><\/span><\/span><\/span><\/h3>\n
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\"A<\/p>\n<\/div>

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Macrina Wilkins<\/p>\n

Permission granted by Associated General Contractors of America<\/p>\n<\/figcaption><\/figure>\n

The impact of AI on construction is \u201ctwofold,\u201d said Macrina Wilkins, senior research analyst at Associated General Contractors of America. The technology is improving project and building opportunities in data center construction, while also turbocharging the way contractors run their businesses.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cYou have it reshaping how contractors are estimating, how they\u2019re doing their scheduling, how they’re managing projects,\u201d Wilkins said. \u201cBut it\u2019s also driving demand for data centers, construction, substations, electrical infrastructure.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Indeed, the <\/span><\/span><\/span><\/span><\/span><\/span>AGC\u2019s 2026 Outlook Survey<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> reported that data centers and power facilities represent the lion\u2019s share of project opportunities this year. Outside of those areas, builders have \u201cdampened\u201d expectations for the construction industry amid economic uncertainty.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Picks and shovels<\/span><\/span><\/span><\/span><\/span><\/h3>\n

The scope and scale of the AI buildout present opportunities for firms beyond just those with the skill, size and expertise to handle multibillion-dollar projects. Other contractors can get in on the action as well, according to Ryan Kunisch, vice president of global product for tech giant Oracle, one of the global firms at the center of the AI data center push.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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\"A<\/p>\n<\/div>

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Ryan Kunisch<\/p>\n

Permission granted by Oracle<\/p>\n<\/figcaption><\/figure>\n

\u201cYou have a small set of large owners who are really driving the demand, whether it\u2019s the utility companies or the data center owners themselves,\u201d Kunisch said. \u201cBut 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.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Just look at Watsonville, California-based Granite Construction. While the firm hasn\u2019t presented itself as a data center builder, it has <\/span><\/span><\/span><\/span><\/span><\/span>highlighted its picks and shovels strategy<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> of creating roads and other infrastructure for data center buildouts in its earnings calls.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cAs the U.S. works to expand grid capacity to support energy-intensive AI workloads, a significant share of related work is occurring around the data center rather than within the building footprint, creating opportunities for smaller civil, utility, and specialty firms to participate,\u201d Wilkins said via email.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Bubble fears<\/span><\/span><\/span><\/span><\/span><\/h3>\n

Despite these projections and perceived opportunities, fears remain, namely bubble fears over the so-called AI trade that roiled the stock market at the end of 2025.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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“A major pullback in investment [and] in valuations on AI and data centers could obviously have a very significant impact on [builders].”<\/p>\n

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Will Senner<\/p>\n

Senior VP of preconstruction and data solutions team leader, Skanska USA Building<\/p>\n<\/div>\n<\/div>\n

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Take the skittishness investors showed over chip giant Nvidia\u2019s Q3 earnings: The AI darling posted a near-perfect quarter, disproving \u201c<\/span><\/span><\/span><\/span><\/span><\/span>pretty much all of the bear cases out there<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>,\u201d according to CNBC. Still, the stock gave back its initial gains as bubble fears continued to nibble around the edges of the boom.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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\"A<\/p>\n<\/div>

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Will Senner<\/p>\n

Permission granted by Skanska USA Building<\/p>\n<\/figcaption><\/figure>\n

Indeed, should the projected demand for AI infrastructure not play out as anticipated, with the amount of cash and debt financing fueling the trend, the collapse of data center buildouts could be disastrous.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cIf 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,\u201d said Will Senner, senior VP of preconstruction for Skanska USA Building and the leader of its data solution team. \u201cHopefully, [they\u2019d] be in position to be able to pivot to other market sectors and other project types.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Oracle\u2019s Kunisch acknowledged the froth surrounding the sector\u2019s projected growth as well, though believes AI is here to stay, as providers including Oracle find ways to make it useful for customers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cThe proof will be in the pudding, so to speak,\u201d Kunisch said. \u201cMeaning 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\u2019ll start to see stabilization in all of this.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Innovation station<\/span><\/span><\/span><\/span><\/span><\/h3>\n

Outside of fueling demand for data centers and surrounding infrastructure, AI can help builders streamline how they run their businesses.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cWe\u2019re seeing lots of innovation, lots of people working to overcome challenges like labor shortages, or challenges like remote versus near urban environments,\u201d said Chris Gorthy, the leader of Redwood City, California-based DPR\u2019s Advanced Technology core market group. That push, along with the demand for the facilities themselves, has been driven, in part, by an \u201cinsatiable need for data in every aspect of our lives,\u201d Gorthy added.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

There are downstream openings for smaller contractors as well.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cI 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,\u201d Skanska USA Building\u2019s Senner said. \u201cA lot of these tools are becoming more and more low code or no code, meaning you don\u2019t have to be a data scientist to quickly create your own AI tool or AI agent.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Senner points to Skanska\u2019s Citizen Developer Program, which trains users in the company on how to create and use their own AI tools following proper data guidelines.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

However, builders without a robust and accurate data infrastructure or vetting system could run into problems.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

That said, as Skanska and other large contractors, <\/span><\/span><\/span><\/span><\/span><\/span>including Turner Construction<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, adopt these AI tools, smaller builders should also benefit, just as BIM, project management and VDC platforms have trickled down construction\u2019s tech stack in recent years.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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\"A<\/p>\n<\/div>

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Sarah Gallegos<\/p>\n

Permission granted by Associated General Contractors of America<\/p>\n<\/figcaption><\/figure>\n

In fact, AGC is working to help smaller contractors take advantage of AI, pitching education and outreach to builders in lower revenue brackets.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cIf we\u2019re not moving together as an industry, then we\u2019re not moving forward,\u201d said Sarah Gallegos, senior director of the building division and construction innovation at AGC.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span>\u201cWe can’t leave the small- to mid-size contractors behind.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Small contractors, Gallegos said, are using AI less as a shiny tool and more as a force multiplier. Examples include speeding up estimating, leveling the playing field in marketing and proposals and streamlining administrative work.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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Chris Love<\/p>\n

Permission granted by Associated General Contractors of America<\/p>\n<\/figcaption><\/figure>\n

Overall, AI adoption will continue to be slow and steady, said Chris Love, AGC\u2019s vice president of association and industry innovation. It will even happen incidentally, as large contech providers such as Procore, which are used by builders of all shapes and sizes, add AI to their product offerings.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cThere 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\u2019re having, and worry about being left behind, I think we\u2019ll continue to see adoption,\u201d Love said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Matthew Thibault<\/p>\n","protected":false},"excerpt":{"rendered":"

This audio is auto-generated. Please let us know if you have feedback. It\u2019s no secret that data center construction was the beating heart of the building industry in 2025.\u00a0 Last January, a collection of tech giants committed up to $500 billion to build data centers across the U.S. Throughout the year, the so-called Stargate initiative<\/p>\n","protected":false},"author":1,"featured_media":887243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[95,144],"tags":[],"class_list":{"0":"post-887242","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-breaking","8":"category-center"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/887242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=887242"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/887242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/887243"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=887242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=887242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=887242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}