ConstructConnect's August 2026 Data Center Report shows data center construction costs climbing sharply alongside record spending. Among data center projects larger than 2,000 square feet, with the top and bottom 10 percent trimmed, the year-to-date 2026 median construction cost stands at $570 per square foot and the average at $859. Many projects report costs well above $1,000 per square foot even after the trim.

The 2025 median and average were $415 and $514 per square foot, so the 2026 figures are up 38 percent and 67 percent respectively. Over the last five years, median and average data center construction costs have risen at compound annual rates of 17 percent and 22 percent.

Spending totals reflect the same trend. Data center starts reached $22.3 billion in June 2026, the second-highest monthly total on record behind January 2026 at $25.5 billion. Year-to-date spending through June stood at $81.5 billion, above the 2025 full-year total of $72.5 billion and more than three times the 2024 full-year total. Twenty-three projects broke ground in June, bringing the year-to-date start count to 116.

The average data center has more than doubled in size since 2022 and reached nearly 700,000 square feet in the second quarter of 2026. ConstructConnect noted that the growth may reflect firms seeking economies of scale to reduce cost per unit of compute.

North Carolina, Indiana, Illinois and Michigan each recorded more than $10 billion in new starts year to date, with Virginia and Texas close behind. ConstructConnect was tracking 85 late-stage preconstruction projects worth $78.2 billion with start dates before year-end, a figure that excludes the $100 billion Project Kestrel.

Source: ConstructConnect News - https://news.constructconnect.com/august-2026-data-center-report-construction-starts-total-22.3-billion-second-highest-on-record