Contractors are increasingly pursuing work tied to power generation, utilities and site preparation as tech companies race to expand AI capacity nationwide. Industry leaders also noted growing challenges tied to labor availability, electrical equipment lead times and power access, which are becoming critical factors in where projects move forward. Despite those pressures, firms remain bullish on long-term demand for AI and data center construction.

SEE ALSO: NONRESIDENTIAL CONSTRUCTION SPENDING GROWTHS ON PUBLIC SECTOR STRENGTH IN APRIL

The post Data Center Demand Drives Construction first appeared on Construction Executive.

The national not seasonally adjusted construction unemployment rate was 6.7% in March, up 1.3% from the same month in 2025. Construction payroll employment also increased by 58,000 jobs compared to a year earlier, though hiring growth has continued to slow.

States with the lowest construction unemployment rates included Oklahoma, South Dakota and Tennessee, while Rhode Island, Connecticut and Minnesota posted the highest rates.

ABC noted that rising energy prices, elevated interest rates, labor shortages and higher insurance and material costs are creating new pressure on contractors and developers. Those conditions are causing some projects to be delayed, scaled back or canceled, contributing to slower demand for construction workers in parts of the country.

SEE ALSO: NONRESIDENTIAL CONSTRUCTION ADDS 15,700 JOBS IN MAY

The post Hiring Holds Steady: Construction Workforce Weathers Economic Turbulence first appeared on Construction Executive.

Falls remained the leading cause of death, accounting for roughly one-third of all construction fatalities. Transportation incidents—including workers struck by vehicles or equipment—ranked second, followed by contact with objects or equipment and electrocutions.

While the small decline suggests incremental progress, safety experts caution that the industry’s fatality rate has remained largely stagnant for more than a decade. Industry leaders say meaningful improvement will require greater focus on planning, hazard recognition and proactive controls targeting the high-risk events most likely to result in life-altering injuries or deaths.

SEE ALSO: ONE INDUSTRY, ONE GOAL: CONSTRUCTION SAFETY WEEK 2026

The post Fatalities Edge Down: New Data Reveals a Promising Decline first appeared on Construction Executive.

Much of that space is already committed. Roughly 92% of the development pipeline has been pre-leased, largely by hyperscale technology companies racing to support AI-driven workloads and cloud services.

The rapid expansion is also reshaping where facilities are built. About two-thirds of new construction is occurring in emerging markets such as Texas, Tennessee, Wisconsin and Ohio, where developers can secure land, power and permitting more easily than in traditional hubs. Texas alone is projected to rival Northern Virginia as one of the world’s largest data center markets.

Despite strong demand, developers face growing constraints, particularly around power availability, grid capacity and long equipment lead times—factors increasingly shaping where and how quickly new data centers can be built.

SEE ALSO: DATA CENTERS, INTEREST RATES AND MORE PRIMED TO EXACERBATE LABOR SHORTAGE

The post Data Center Surge: Pre-Developed Space Already 90% Leased first appeared on Construction Executive.

ABC Chief Economist Anirban Basu says the industry faces significant headwinds, including an aging workforce and elevated retirement rates, which account for much of the projected 2026 demand even amid slower growth. Failure to recruit enough workers could intensify labor shortages in key regions and trades, driving higher costs and project delays. Additional pressures include immigration uncertainty, high material prices, tariffs and rapid technological change. ABC emphasizes the need to strengthen the construction talent pipeline, expand workforce development efforts and promote construction careers to ensure the industry can meet future demand.

SEE ALSO: TARIFFS DRIVE CONSTRUCTION MATERIALS PRICES UP 2.8% IN 2025

The post Workforce Crunch Ahead: Construction Labor Demand Outpaces Supply first appeared on Construction Executive.

SEE ALSO: CONSTRUCTION BACKLOG INDICATOR INCHES HIGHER IN DECEMBER, FUELED BY DATA CENTER MOMENTUM

The post Dry Data: Zero-Water Data Center Design first appeared on Construction Executive.

However, this rapid growth also brings heightened risk and complexity. Major risk factors include: power supply bottlenecks as grid infrastructure struggles to keep up; outages caused primarily by electrical issues or human error; supply-chain constraints for critical components; and natural-hazard exposure from climate and geographic concentration. The report underscores that while the boom has momentum, stakeholders need robust risk management, planning and resilience strategies to ensure the build-out remains sustainable.

SEE ALSO: DATA CENTERS, TARIFFS, INFLATION, OH MY: ANIRBAN BASU ON CONSTRUCTION ECONOMY AT YEAR’S END

The post Building for the Boom: Of Data Centers, That Is first appeared on Construction Executive.

To address this, Skanska hosted Narcan training led by Be Well Texas, equipping employees with the knowledge to recognize the signs of an overdose and respond effectively. Each attendee received Narcan, the opioid antagonist, so they are prepared to act if needed.

“Drug use is not something we tolerate on jobsites, but it is not unusual for our workers to come into contact with drug users near projects or in their surroundings,” said Carlos Alvarez, environmental health safety director for Skanska. “After a training session, one of our workers encountered what appeared to be an overdose at a nearby convenience store. Thanks to the training, he felt prepared to respond—fortunately, Narcan wasn’t needed, but the readiness mattered.” Skanska’s safety culture prepares employees for a wide range of situations—including drug overdoses and mental health crises—which is increasingly important in today’s world. The company also trains team members as certified Mental Health First Aiders, reinforcing its commitment to employee wellbeing.

SEE ALSO: OPIOIDS AND SUBSTANCE-USE DISORDERS IN THE CONSTRUCTION INDUSTRY

The post Recognize and Respond: Narcan Training to Combat Opioid Overdose in Construction first appeared on Construction Executive.

The U.S. Naval Facilities Engineering Systems Command Hawaii has issued an $8-billion multiple‑award contract to address infrastructure needs at Joint Base Pearl Harbor‑Hickam and surrounding areas. The contract is structured as IDIQ and spans both design‑build and design‑bid‑build projects, covering new construction, repairs, alterations, and demolition work.

NAVFAC spokespeople emphasized this tool will allow faster mobilization of contractors for both planned and emergent facility upgrades, boosting readiness and resilience in the Pacific. Given growing strategic attention on the Indo‑Pacific, this investment reflects broader U.S. military infrastructure priorities. Contractors who win task orders under the IDIQ framework could see long‑term revenues. Experts share that this model gives flexibility but also requires mitigation of risk around cost escalation, labor availability and material supply chains.

AI ADVENTURE

Venture activity in the built environment saw significant year-over-year increases during this year’s second quarter, largely driven by sustained popularity in artificial intelligence-powered technologies in the sector. Of the 159 AEC industry venture deals recorded in Q2, 110 (or nearly 70%) involved startups identified as AI-driven, according to BuiltWorlds’ latest quarterly venture report.

Overall, venture inflows and deal volume in the built environment were up in Q2 from the same time last year. Inflows saw a $1.7 billion, or 75.2%, increase from Q2 2024 to $3.96 billion, while deal volume experienced a 41% increase over the same period, from 113 to 159 deals.

“Both (deal) count and capital inflows are on pace to outperform 2024 levels in 2025,” the report reads, clarifying that the growth is taking place “despite economic headwinds from high interest rates and tighter liquidity.”

This pace is especially impressive considering that 2024 was a record-setting year, both in regard to deal count as well as inflows. The driving factor? Artificial intelligence.

The post News Briefs: September-October 2025 first appeared on Construction Executive.

StorageCafe recently analyzed the 100 most populous U.S. cities using 2023 census data and 2025 rental stock information from Yardi Matrix to determine which markets have the highest percentage of undersized rental units—that is, rentals smaller than half the average unit size for their state.

West Coast cities are leading the charge. San Francisco comes out on top, with approximately 15% of its rental inventory classified as “micro” units under 441 square feet—some as small as 124 square feet. Seattle ranks high as well, with micro units accounting for 12% of its current total stock and a striking 66% of its new developments. Other top markets for new micro-unit development include Boston (56.2%), Newark (49.8%), New York City (43.3%), Reno (40.5%), Portland (19.3%), San Diego (21.2%), Minneapolis (20.3%) and Honolulu (11.6%).

Overall, micro‑housing is on the rise and gaining mainstream acceptance. Driven by zoning reforms in several cities alongside skyrocketing rent costs, micro-living offers cost-effective, compact options for young professionals, retirees and single-person households.

COPPER CRUNCH

Copper prices have recently soared to record highs due to President Trump’s proposed 50% tariff on the metal—an announcement with major implications for the construction industry. Copper, essential to wiring, plumbing, HVAC systems and other core building components, surged 13% at one point, marking the largest single-day price jump since 1968. Futures climbed over 9.5%, reaching $5.51 per pound.

The proposed tariff threatens to significantly raise material costs for builders, especially as the U.S. relies heavily on copper imports—about 810,000 tons in 2024—despite strong domestic production. Most imports come from Chile, Canada and Mexico, key trade partners now facing potential disruption. The industry has long depended on stable supply chains, which could be upended by this policy shift. For contractors and developers already grappling with inflation and labor shortages, higher copper prices could delay projects, shrink margins and stall growth across commercial and residential sectors.

The post News Briefs: July-August 2025 first appeared on Construction Executive.