The accelerated expansion of data center infrastructure presents one of the most consequential and capital-intensive construction opportunities in the US today. This specialized subset of commercial construction has evolved into a full-scale infrastructure boom, fueled by the explosive growth of artificial intelligence (AI), hyperscale cloud computing and enterprise digital transformation.
For contractors, this shift represents a massive surge in demand, characterized by unprecedented project volume, aggressive timelines and increasingly complex execution requirements.
The numbers underscore the magnitude of this moment: 19 projects broke ground in December 2025, representing $12.5 billion in new construction. Over the preceding 12 months, total data center construction starts climbed to $103.7 billion, with an average monthly spend of $8.6 billion.
In January 2026, US data center construction starts reached a historic $25.2 billion, including megaprojects with individual valuations as high as $10 billion.
The demand for new data centers isn't expected to decline anytime soon. It's forecasted that as much as $3 trillion will be invested globally in AI-driven data center infrastructure by the end of 2028, with roughly half of that total allocated to construction.
For contractors, managing risk is essential
For contractors, the opportunity is as compelling as it is demanding. The average data center project has grown dramatically in both size and cost, with 2025 figures indicating an average project value of $633 million (up approximately 70% year-over-year) and construction costs now exceeding $1,000 per square foot, nearly double the levels seen just two years ago.
At the same time, hyperscale clients (such as major cloud and social media platforms) continue to compress delivery timelines, often expecting facilities spanning 100,000 square feet and housing tens of thousands of servers to be completed in as little as 12 to 14 months, roughly the same time it takes to build a residential home. This combination of scale, cost intensity and speed-to-market expectations places intense pressure on contractors to execute with precision across the planning, procurement and construction phases.
"As the data center boom continues to reshape the construction landscape, contractors who recognize both the magnitude of the opportunity and the importance of strategic risk management will be best positioned to lead in this next phase of infrastructure development," says Brian Cooper, Gallagher's Senior Managing Director for US Construction.
The strategic importance of data center development continues to elevate the role of contractors within the wider technology ecosystem. These projects are no longer simply buildings; they're mission-critical assets that underpin global digital infrastructure. Expectations around reliability, resilience and performance have never been higher, and the margin for error has never been smaller.
Rewards are waiting — with the right approach to risk management
For contractors who can successfully navigate this environment, the rewards are substantial: sustained project pipelines, larger contract values and deeper relationships with some of the world's most well-capitalized clients. However, capturing this opportunity requires far more than technical capability. The unique risk profile of data center construction — from high-value equipment exposures and tight commissioning schedules to evolving energy strategies and regulatory scrutiny — demands a mindful, sophisticated approach to risk management and insurance.
Experienced, trusted counsel is required for projects of this scale and complexity. Contractors must align with partners who understand the nuances of data center construction and can deliver tailored coverage, proactive risk engineering and access to specialized underwriting capacity.
In a market defined by speed, scale and precision, the ability to effectively manage risk is not just a protective measure. It's a competitive differentiator.
For a full rundown of the exposures contractors face in data center projects, download our new whitepaper, "Managing Risks for Contractors in a $100 Billion Market."