US Data Center Construction Value Surpasses Office Space for First Time in History

In a landmark shift for the US commercial real estate sector, the value of data center construction has officially exceeded that of traditional office buildings. According to the US Census Bureau’s December construction spending report, this milestone highlights a massive structural reallocation of capital toward AI infrastructure. Analysts suggest this crossover reflects a broader economic transition, where productivity growth is increasingly driven by machines and AI rather than traditional human labor. However, CBRE data indicates that data center capacity under construction fell to 5.99 gigawatts by late 2025 due to permitting delays and power procurement challenges. While the surge in AI demand fuels this infrastructure boom, the traditional office market continues to struggle with remote work trends and corporate downsizing. This divergence creates a bullish outlook for specialized REITs like EQIX and DLR, while posing significant risks to the broader commercial office market.