Take data centers out and US nonresidential construction spending sits at a three-year low

Census Bureau figures released September 1 put total construction spending in July at a $2.17 trillion seasonally adjusted annual rate, down 0.5% month over month, with private nonresidential up 0.4%. An Associated Builders and Contractors analysis found the whole nonresidential increase came from data center work; strip that out and the category fell for a second straight month, to its lowest level since September 2023, chief economist Anirban Basu said.

What it means The AI build-out is now the only thing holding up an entire category of construction demand — an opening if you sell into it, a concentration risk if you depend on it.