Commercial Building Contractors NAICS 2362

Jun 6, 2026 - Data Centers Struggle to Meet Completion Timelines

• According to The Wall Street Journal, major tech companies are raising and spending record amounts on AI data centers, but construction delays tied to power availability, permitting issues, and supply-chain constraints are slowing deployment. A JPMorgan analysis found that more than 60% of planned 2027 data-center capacity is not yet under construction, while another 7% is delayed. Google is pursuing a different strategy by investing directly in power generation, acquiring renewable-energy developer Intersect, and expanding programs that shift computing demand to match available electricity. Analysts say these efforts could help Google connect new facilities to the grid faster than competitors. Microsoft, Amazon, Meta, and Alphabet are expected to spend more than $670 billion on capital expenditures this year as the AI race accelerates.
• Demand for building design services declined in April 2026 over the prior month, as architectural billings remain soft, according to a May report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 48.3 in April from March’s reading of 49.8. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 57.7 in April compared to 56.8 in March, and the index for the value of new design contracts increased from 47.8 to 48.0. The AIA’s Chief Economist, Richard Branch said, "April’s economic picture was mixed as employers continued to add jobs, but inflation accelerated as higher energy prices tied to the conflict in Iran drove up costs. While a proposed gas tax holiday could offer some short-term relief, energy prices are unlikely to ease meaningfully until the conflict ends."

• The total value of nonresidential building and residential construction starts increased in April 2026 compared to March, according to Dodge Construction Network. Residential starts fell 0.7% month-over-month in April; single-family starts rose 4.2%, while multifamily starts were down by 7.2%. Nonresidential building starts increased 18.6% in April amid an uptick in activity across all project types. Commercial starts were up 41.4% in April, driven by offices and data centers. Commercial growth was also solid for parking garages (starts up 120.4%), warehouses (+25%), hotels (+12.8%), and stores (+5%). Institutional starts were strong in April, with education rising 13.2% and healthcare increasing 4.6%. Manufacturing construction starts were down 29.3% in April after posting a massive 251.4% gain in March. Dodge Construction Network chief economist Eric Gaus said, “April’s construction starts were robust with only three categories posting month-over-month losses. Large data centers and energy generation supported the growth, but 9 of the 15 categories saw double or triple-digit growth."
• US retail construction has fallen to historic lows even as investor demand surges, according to Bisnow. CBRE reported 4.7 million square feet of completions nationwide in the first quarter, the lowest since CBRE began tracking retail construction completions in 2005. High costs and labor shortages have pressured retail construction. Availability rose 10 basis points to 4.9% in Q1 2026 despite 1.7 million square feet of positive net absorption, as bankruptcies added space back to the market. New development is concentrated in the Sun Belt, led by Phoenix, followed by Dallas, San Antonio, Houston, and Bakersfield, California. Neighborhood and strip centers drove absorption. Meanwhile, institutional investment is accelerating, with major deals and funds targeting retail assets, and US retail property sales volume reaching $66.8 billion in 2025, up 35% year over year.