Construction spending and hiring is up, and it’s largely thanks to data centers, according to one construction trades organization. 

The industry added 9,000 jobs in April, according to an analysis of federal jobs data by the Associated General Contractors of America. That followed construction spending growing 0.6% from February to March, AGC said.  

It’s a welcome indication of the industry’s resilience despite broad economic uncertainty domestically and internationally. And its non-residential construction, particularly data centers, that are shoring up declines in other parts of the building sector. And that’s why AGC is now sounding the alarm on more communities restricting such projects. 

“Demand for data centers and related projects is providing a much-needed boost to overall construction activity,” said Jeffrey D. Shoaf, the association’s chief executive officer, in a statement. “Unfortunately, a growing number of local officials appear intent on undercutting that growth, and the high-paying construction jobs that come with it, by restricting data center projects.” 

Construction spending totaled a seasonally adjusted $2.186 trillion annual rate in March. That figure is 0.6% above the revised February rate and 1.6% higher than the March 2025 level. Private construction spending increased 0.8% for the month and 1% year-over-year. Private residential construction climbed 3.6% compared to a year earlier, including a 2.7% monthly increase in single-family construction, although single-family spending remains 4.2% below year-ago levels. Multifamily construction edged up 0.5% year-over-year. 

Public construction spending decreased 0.2% for the month but remained 3.6% above year-ago levels. Highway and street construction increased 3.8% compared to March 2025, while transportation construction rose 2.5% and sewage and waste disposal construction jumped 9.7% year-over-year. Education construction spending inched up by 0.6% over the past year. 

Over the past 12 months, the industry has added 50,000 jobs, an increase of 0.6%, slightly outpacing the 0.2% increase in total nonfarm payroll employment. But that growth was buoyed by non-residential construction, which increased by 19,000 positions in April and added 98,600 jobs over the past 12 months. Residential construction employment declined by 10,400 jobs in April and 49,200 positions over the past 12 months. 

Data center construction projects are facing increasing scrutiny from communities concerned about impacts to water and energy resources, as well as other factors such as how they could affect other infrastructure and neighboring residential areas.