Real Estate|Construction|Technology|AI & Automation — AI Data Center Boom Masks Broader Slump In US Industrial Construction

A 23% year-over-year increase in spending on AI data centers is obscuring a significant downturn in the broader U.S. nonresidential construction market. Spending on manufacturing facilities plummeted 22% in May, as high interest rates and material costs over 55% higher than 2020 levels deter new projects. While the AI buildout provides a bright spot, data centers represent just 8% of the sector, indicating underlying weakness in traditional industrial construction.