Construction Backlog Rises to 8.7 Months Amid Data Center Boom

Jan 19, 2025
Ecommerce, Commercial
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The Construction Backlog Indicator rose to 8.7 months in June 2025, up 0.3 months, driven by data center demand. Over 60% of contractors expect sales growth in 2025 despite economic uncertainties. Labor shortages and rising material costs continue to challenge profit margins. The Associated Builders and Contractors note that one in seven members is now working on data center projects. This resilience highlights the sector's strength in specialized construction areas. However, ongoing supply chain issues require adaptive strategies to sustain growth.

The Associated Builders and Contractors (ABC) announced that its Construction Backlog Indicator increased to 8.7 months in June 2025, up 0.3 months from both May 2025 and June 2024, according to a member survey. The surge is largely attributed to a booming demand for data center construction, with one in seven ABC members currently engaged in such projects. Anirban Basu, ABC’s chief economist, noted that despite persistent economic uncertainties, contractors remain optimistic, with 60% anticipating sales growth in the second half of 2025. However, challenges such as labor shortages and rising material costs continue to pressure profit margins. The report highlights the resilience of the construction sector, particularly in specialized areas like data centers, which are counterbalancing declines in other commercial segments.