IGF - 2025-26 Construction Forecast: Chips And Data Centers Lead, Others Lag

2025-02-07 10:20:00 ET

Summary

• Non-residential construction will grow very slowly over the course of 2025, but at least not shrink.
• However, many of the private non-residential sectors will decline, with strong gains in data centers and chip fabs.
• Public sector spending won’t grow as fast in the next two years as it grew during the ramp-up of the infrastructure bill’s effects, but a solid 5-6% percent annual growth seems likely. After 2026, though, expenditures will decline absent more federal legislation.

Non-residential construction will grow very slowly over the course of 2025, but at least not shrink. However, many of the private non-residential sectors will decline, with strong gains in data centers and chip fabs. Public non-residential construction will edge upward slowly as past infrastructure legislation finally gets translated into actual activity....

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