Construction data from the US Census Bureau, compiled by Our World In Data, shows datacenter building costs rising sharply after November 2022. The spending, measured in inflation-adjusted 2021 dollars, covers construction materials, labor, power distribution, and backup energy equipment — but not the compute, storage, or networking gear installed inside. Along with utility construction, it is now helping counterbalance weaker residential and commercial construction in the US economy.
A forecast prepared by the investment firm Jeffries and the market researcher Aterio tracks roughly 65 GW of datacenters under construction, about 140 percent of installed capacity, and another 361 GW of announced future projects. But Jeffries managing director Jonathan Petersen argues that only 12.9 GW of new capacity will come online in North America in 2026, and 18 GW in 2027. The firm is deliberately skeptical about the pipeline, applying probability estimates to whether projects will actually be completed.
Petersen says focusing only on grid connections, hyperscaler capex, or chip sales misses the bigger picture. Moving a datacenter from announcement to operation requires available labor, manufacturing of electrical and cooling equipment, and a cooperative political and regulatory environment. The article notes that high mortgage rates may conveniently push construction workers toward datacenter projects instead of housing, but no amount of money can speed up the installation of power generation equipment at utilities or inside facilities.