Demand for data center construction remains strong, but growing pains around the supply chain and inflation could mute the pace of building in the sector, said Reaves. The commercial component of the momentum index increased 2.9% in September largely due to data center construction, according to Dodge.
“Certain subsectors have shown resilience since the pandemic’s onset, such as data center projects, and continue to stream into the planning pipeline,” said Reaves. “However, looming challenges still remain for the sector, including supply shortages and the rising cost of materials that could chip away at the flow of new projects if inflation is not tempered.”
