Construction spending on AI data center "shells" soared in July, rising at an annualized rate of nearly 60% from July 2025 levels.
Why it matters: It shows the AI building frenzy was gathering strength this summer, even as — or perhaps because — a bipartisan backlash grows.
By the numbers: Data center construction spending jumped to an annual pace of more than $75 billion in July, Census Bureau data released Tuesday showed. That figure represents the value of the construction "put in place" during the month.
- It covers only the construction costs for the massive warehouse-like structures — often referred to as shells — that will be filled with racks of servers, processing units, memory chips and the fiber-optic connections that AI relies on.
Reality check: Despite the gobsmacking amount of money being spent on data center construction, it's a pittance compared with what it costs to fill a data center with increasingly expensive processors and memory chips.
Bottom line: Estimates peg construction at roughly 20% of all-in costs for a data center.