Data Centers Are Carrying the Entire Construction Industry Right Now — Here’s What That Means for NW Contractors
While commercial sectors including office, and retail experience declining demand, data center construction is the singular bright spot carrying the entire nonresidential construction market in 2026 — with semiconductor and AI infrastructure projects representing tens of billions in construction spending at some of the most technically demanding jobsites in the country. The Pacific Northwest has a front-row seat to this boom: Microsoft, Amazon, and Google have all made massive data center investments in Eastern Washington and the Portland metro over the past three years, and the region’s abundant hydroelectric power supply continues to attract new entrants. Data center construction costs are continuing to rise as electrical components become harder to source, making early procurement and experienced electrical and mechanical subcontractors the most critical assets a data center GC can have. For NW contractors with cleanroom experience, high-voltage electrical capacity, or specialized MEP capabilities, the data center pipeline in this region is deep and shows no signs of slowing. Federal Highway Administration Federal Highway Administration
Source URL:https://www.constructionowners.com/news/construction-outlook-weakens-beyond-data-centers