{"id":35760,"date":"2026-06-22T06:24:16","date_gmt":"2026-06-22T13:24:16","guid":{"rendered":"https:\/\/essential.construction\/news\/construction-surges-ahead-despite-cost-power-concerns\/"},"modified":"2026-06-22T06:24:16","modified_gmt":"2026-06-22T13:24:16","slug":"construction-surges-ahead-despite-cost-power-concerns","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/construction-surges-ahead-despite-cost-power-concerns\/","title":{"rendered":"Construction surges ahead despite cost, power concerns"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?313321260226\" alt=\"-\"><br \/>\n        Listen to the article<\/p>\n<p>            <span class=\"text-to-speech__button__audio-length\">3 min<\/span><\/p>\n<p>    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/823307\/2026-06-22_08.32.27\/construction-surges-cost-power-concerns.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Recent gains in planning activity and construction starts have done little to ease concerns about rising costs, according to industry reactions to the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/latest-construction-data-showed-activity-outside-data-center-boom\/822549\/\" target=\"_blank\"><span><span><span><span><span><span><span>latest batch of construction economic reports<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The data showed signs of momentum across parts of the construction industry. In addition to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/data-center-largest-driver-growth-construction-planning\/819879\/\" target=\"_blank\"><span><span><span><span><span><span><span>strong planning<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-starts-jumped-april-more-project-types-broke-ground\/820960\/\" target=\"_blank\"><span><span><span><span><span><span><span>groundbreaking activity<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, construction backlog also reached a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/ai-backlog-high-biggest-contractors\/820285\/\" target=\"_blank\"><span><span><span><span><span><span><span>10-month high<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in April.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Yet, despite that flurry of construction plans, Adam Raimond, program manager at Gordian, a Greenville, South Carolina-based construction data provider, still expects a higher cost environment in the backdrop.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cMy overall takeaway from these reports is that the trends that started to be established in the previous couple months are continuing to persist,\u201d Raimond told Construction Dive. \u201cNot much is really bucking the overall narrative trends in the economy. Data center growth is high, all other areas are tepid and global conflicts are a leading reason for higher input costs.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-prices-soar-april\/820228\/\" target=\"_blank\"><span><span><span><span><span><span><span>Rising construction input costs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> remain one of the industry\u2019s key challenges. Input prices climbed again in April and May, largely due to energy and tariff-sensitive materials.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cEstimators should hope that the persistent trend in input costs rising does not continue much longer,\u201d said Raimond. \u201cDepending on the reporting source, material input costs are reportedly up 4% to 7% since the start of the year.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Much of the material price jumps stem from <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/trump-steel-aluminum-copper-tariffs-construction-materials\/821861\/\" target=\"_blank\"><span><span><span><span><span><span><span>metals and lumber<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, though rising fuel and transportation costs are starting to push other input prices higher, added Raimond.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt\u2019s looking unlikely at this point that most costs will reverse,\u201d he said. \u201cBut if there\u2019s fuel price relief, then that could at least slow the rise of other inputs such as drywall or concrete.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Contractors keep pushing dirt<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Still, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/walbridge-breaks-ground-stargate-data-center-openai-oracle\/821972\/\" target=\"_blank\"><span><span><span><span><span><span><span>developers appear increasingly willing to break ground<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> despite higher costs, said Ermengarde Jabir, director of commercial real estate research at New York City-based Moody\u2019s.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe latest data suggests that developers and investors are understanding that the present broader macro headwinds are simply the environment in which they must operate for the time being,\u201d said Jabir. \u201cThere\u2019s a bit more movement on the nonresidential construction front.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That\u2019s especially true for ancillary projects around artificial intelligence builds, said Juan Arias, national director of U.S. industrial analytics at CoStar, an Arlington, Virginia-based commercial real estate services firm.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe data center buildout is also driving demand for space from companies tied to related infrastructure. We have seen healthy leasing activity from tenants in the electrical component and equipment manufacturing,\u201d said Arias. \u201cThis will continue to drive healthy construction spending towards related infrastructure.&#8221;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nevertheless, Arias warned the next challenge will be whether <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/data-center-project-cancellations-power-public-pushback\/818157\/\" target=\"_blank\"><span><span><span><span><span><span><span>communities and utilities<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> can keep pace with the industry\u2019s growth.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhile demand for data centers is impressive, community pushback and infrastructure constraints around power and water are headwinds that will continue to intensify in the coming months,\u201d said Arias.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Jabir echoed those concerns. She also pointed to both power availability and local resistance as <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/judge-halts-google-data-center-project\/822152\/\" target=\"_blank\"><span><span><span><span><span><span><span>major risks in the future<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cBecause the lion\u2019s share of this activity is focused on data centers, it is important to keep potential oversupply risk in mind in the short-term, especially given how rapidly technology and demand are evolving,\u201d said Jabir. \u201cOver the long-term, potential municipal pushback on data center construction and access to the requisite power for operating a data center are two headwinds to keep in mind.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-surges-cost-power-concerns\/823307\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. 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