Electrical Contractors NAICS 238210

Jun 14, 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.
• The Dodge Momentum Index (DMI) increased 5.9% in May 2026 to 275.7 (2000=100), up from the revised April reading of 260.4. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 6.9%, and institutional rose 3.1%. Dodge’s associate director of forecasting, Sarah Martin, said, "Nonresidential planning continued to stabilize throughout May. Growth in the DMI continued to be led by data center activity, but key sectors – such as healthcare, retail stores and offices – gained momentum as well. Nonetheless, the broader outlook remains cautious, as persistent labor constraints, elevated material costs and ongoing supply chain pressures weigh on owner sentiment in the near term."

• The total value of US construction put in place rose 0.4% in April 2026 compared to the prior month, according to the US Census Bureau. Residential spending grew 0.8%, and nonresidential spending increased 0.1%. Overall, construction spending in April surpassed economists' expectations of just 0.2% growth. A 1.4% increase in single-family project spending led April's growth, even as the conflict with Iran stoked inflation and sent the 30-year fixed mortgage rate higher. Spending on private nonresidential buildings declined 0.2% in April. Private nonresidential structure spending has fallen for nine consecutive quarters, despite the data center boom. Bright spots in April nonresidential building construction included a 1.9% rise in public safety project spending and a 1% increase in offices (a category that includes data centers). Lodging, educational, and healthcare also saw slight upticks. However, weakness in the commercial and manufacturing construction segments continues to weigh on nonresidential building spending.
• Home remodeling spending growth is expected to slow significantly early in 2027, according to the Leading Indicator of Remodeling Activity (LIRA) report released in May by the Joint Center for Housing Studies at Harvard. Homeowner spending on improvements and repairs is expected to increase 1.8% to $516 billion in the second quarter of 2026, compared to Q2 2025. In the third quarter of 2026, remodeling spending will trend slightly upward to $518 billion, up 2.4% from Q3 2025. Spending will then remain flat at $518 billion in Q4 2026, up 1.8% from Q4 2025. In the first quarter of 2027, year-over-year spending is forecast to rise just 0.5% to $523 billion. Remodeling permitting and building product sales have remained flat recently, but homeowners are expected to maintain spending near 2025 levels. Remodeling spending is likely to remain subdued, barring a turnaround in the construction sector.