Data center boom failed to lift construction spending to start 2026

Construction spending failed to gain momentum in early 2026 despite a data center boom, signaling broader weakness in the sector. Economists cite geopolitical tensions, including the Iran conflict, as a concerning headwind for future growth.

The lackluster spending report is “especially concerning in light of the ongoing conflict in Iran,” said Anirban Basu, ABC chief economist.  

This story was originally published by Construction Dive.