Data centers are hiding a construction slowdown

🎶 It’s getting hot in here — and not just because of the weather (though we’ve got that covered here, too). Community sentiments about data centers are coming to a boil even as construction is cooling, and young people’s heated feelings about AI may turn out to be an antidote to the labor shortage. We also learn about an advancement to make concrete strong and flexible.

But first, Harry Potter fans will love the construction equivalent of the Sorting Hat.

» Genius, or…? What do you think about this solution to space constraints found by Realtor Megan Porterfield?

» ‘Nobody restores a latrine.’ What an ancient WC tells us about the durability of Roman concrete.

» Singin’ the blues. Legendary singer-songwriter Willie Nelson has entered the data center site selection chat.

» You did what? Check out the inventive cooling rig this contractor crafted.

Non-residential Building (NRB) is up 21.6% YTD, according to ConstructConnect’s latest Construction Economy Snapshot. Most activity is, not surprisingly, in the data center “ecosystem”. When that’s removed from the equation, NRB’s YTD rate plummets to negative 6.2%.

“This highlights the substantial weakening in YTD results since the end of the first quarter when NRB less Office growth was 14.2%,” notes Michael Guckes, the company’s chief economist. But even with data centers in the equation, NRB’s steady growth trajectory is becoming more volatile. “Monthly totals now swing more sharply because mega-projects do not enter the market evenly.” 

Overall, NRB is especially robust in the South and Midwest, reflecting data center developers’ shift to secondary and rural markets where water and power are attainable and NIMBY forces are less active. (The latter remains to be seen.)

Why it matters: With fewer jumbo facilities coming online, everything in the data center ecosystem is affected. Contractors in the space should begin looking for opportunities in other sectors. Firms working on smaller projects should prepare for increased competition from bigger peers that may enter the market to fill their pipelines. (ConstructConnect)

AI is often presented as a way to do more with fewer people. That might be true in the construction office, but out on the site, we still rely mostly on humans — even if it’s to oversee the work of AI and autonomous machines. Surprisingly, the backlash against AI, especially among young people, could be the key to attracting more workers into the business and growing the labor force.

“Excitement around AI has also led to a resurgence in interest in skilled trades,” writes Megan Cerullo, a reporter for CBS MoneyWatch. “Career experts say jobs like electricians, plumbers, welders, masons, HVAC technicians and other occupations requiring technical training are increasingly appealing to young people.”

JOBBER’s 2026 Blue Collar Report shows parents of those young people are encouraging a path to trades, with a whopping 93% of Gen Alpha’s families saying they would financially support trade school at the same level they would a college degree.

Why it matters: As the construction workforce ages and immigration crackdowns reduce the workforce further, anything that attracts young workers to the trades is a net positive. Shift your recruiting to focus on teaching a skill and providing a good workplace for new hires to apply it. (CBS News)

Maybe. As extreme heat becomes more common, construction companies are looking for ways to keep employees safe and cool. One option is shifting to cooler hours of early morning or after dark. In many areas, though, noise restrictions make that impossible, “pointing to the fact that we have not aligned our systems to respond to this,” asserts Ashley Ward, director of the Heat Policy Innovation Hub at Duke University’s Nicholas Institute for Energy, Environment & Sustainability. “Perhaps the way to do that is to say ‘Yes, there's a noise ordinance; however, if we have dangerous heat in the forecast, we lift the noise ordinance in order to allow shifted work hours.’”

It’s worth checking with your local leaders to see what’s possible where you work.

Why it matters: The Center for Construction Research and Training reports that despite being just 7% of the workforce, construction workers experience more than one-third of occupational heat-related deaths. “With each of the past 10 years being the warmest ever recorded, HRI prevention remains critical for construction workers.” (Due South)

» Bureaucratic bottleneck: When ADU rules are open to interpretation

» Data dumped: NY State issues first-ever hyperscale data center pause

» Rising rate: Mortgage interest growth is another setback for housing

» Today’s tastes: What new homebuyers want now

That’s the question MIT structural engineer Caitlin Mueller answers in her recent TEDxMIT talk. Her lab is using intelligent design and shaping to explore options using a tensile material that allows brittle materials like concrete to become very strong in softer shapes. This enables contractors to use less concrete and cement, reducing overall emissions from manufacturing and creating less construction waste.

Why it matters: “Reinforced concrete is the most ubiquitous material on Earth [and] 8% of global greenhouse gas emissions are due to cement alone,” she notes. “Of course we need to find alternatives.” (TEDxMIT)

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The Level is curated and written by Margot Lester and edited by Bianca Prieto