ABC National’s June 2026 nonresidential construction spending report confirmed what Carolinas contractors have been feeling on the ground: data centers are the standout growth driver in U.S. commercial construction, and that dominance is directly reshaping construction backlog quality for firms across North Carolina and South Carolina. For ABC Carolinas members, this is not just a national headline-it is a regional operating reality that demands sharper decisions on bidding, staffing, and capital allocation right now.
ABC National’s June release showed that national nonresidential construction spending was roughly flat month-over-month, with construction spending projected to grow only 1.0 percent for the full year. But beneath that modest headline, the story is deeply uneven. Private data center and digital infrastructure work continued to post double-digit year-over-year gains. Data center construction spending increased by 32 percent last year and has maintained that pace into 2026, while traditional commercial categories are struggling. Office construction spending is expected to decline in double digits this year. Manufacturing construction spending is expected to decline 3.9 percent. High interest rates continue to create friction for private commercial financing in construction, suppressing new office space and speculative retail projects across the broader economy.
What does “nonresidential construction spending” actually measure? It tracks dollars put in place-actual work performed and materials delivered-not project counts or announcements. A single monthly report is a short-term signal, not a long-range forecast. Readers looking for broader context on trends over the past year should review ABC Carolinas’ earlier coverage of nonresidential spending and its regional implications.
Within private nonresidential sectors, data centers and select manufacturing tied to artificial intelligence and cloud computing are offsetting weakness elsewhere. The AI build-out and the demand for power-hungry server campuses have become the primary engine of growth in the construction sector. Meanwhile, federal spending cuts exceeded $300 billion in 2025, adding uncertainty to some public projects even as federal funding from infrastructure legislation continues to support civil projects in both states.
This June snapshot lines up with the trends already tracked in ABC Carolinas’ mid-year 2026 construction economic forecast, reinforcing that what we are seeing is a pattern rather than an anomaly. The rest of this article translates the national spending signal into a Carolinas-specific view of construction backlog, pricing, workforce, and schedule pressure.
Construction backlog, in practical terms, is the total value of contracted work not yet completed, converted into months of work remaining. Nationally, construction backlogs hover at 8 to 9 months of work on average. The South traditionally maintains the longest average backlog nationally, and the Carolinas are no exception. ABC’s Construction Backlog Indicator provides a useful benchmark, and ABC Carolinas’ deeper explainer on what that 8.1-month national indicator really means for regional firms is essential reading for any executive tracking their pipeline.
As of mid-2026, many South-region contractors report 9 to 10-plus months of average backlog. Large-scale contractors report extended backlogs heavily supported by industrial and tech projects, with some firms carrying 11 to 12 months of committed work. Infrastructure projects supported by federal funding keep contractors busy across both states. The backlog of contractors is a sign of a strong project pipeline rather than a lack of demand-but the composition of that pipeline matters enormously.
The June nonresidential spending report reinforces this by showing that the dollars flowing most reliably are in mission-critical categories-data centers, power infrastructure, select manufacturing, and public projects-that typically yield multi-phase, multi-year commitments. More work is not automatically better if it is thin-margin, highly speculative, or concentrated in weakening sectors like traditional office or retail. In residential construction, projects have their own dynamics, but the commercial backlog story is increasingly bifurcated.
Carolinas contractors should be reviewing their 2026–2027 job mix now. Think of backlog as a risk portfolio: how much is anchored in data centers and infrastructure versus more vulnerable private commercial work? The answer determines how resilient your firm is heading into the next few years.
Data center expansion is not evenly spread. It is clustering in specific corridors and metro areas that already have power, fiber, and developable land. Major industrial and infrastructure investments continue to attract large manufacturing plants and data centers to the Carolinas, but the geographic concentration creates both opportunity and competition.
In the Charlotte region-including Cabarrus and Iredell counties-large hyperscale and colocation projects near I-77 and I-85 are anchoring multi-year backlogs for sitework, concrete, steel, and MEP contractors. Charlotte alone has at least 67 operating data centers, with 26 more planned and 4 under construction. These campuses are pulling subs from as far as the Triad and Upstate South Carolina, intensifying construction activity across the metro.
The Triangle and the broader North Carolina data center corridor-stretching from Raleigh-Durham toward Johnston, Nash, and Harnett counties-are transforming former industrial and agricultural land into mission-critical campuses. Duke Energy reports that data center load is about 3 GW today and is expected to climb to roughly 6 GW within a decade. This plays a significant role in shaping where construction starts will concentrate. ABC Carolinas’ coverage of North Carolina data centers and their workforce and infrastructure impact provides deeper detail on specific campuses and utility upgrades driving this wave.
Upstate South Carolina-Greenville, Spartanburg, Anderson-and parts of the I-85 corridor toward Gaffney are seeing spillover data center, logistics, and advanced manufacturing work, boosting backlogs for civil, mechanical, and electrical trades. Gaffney, for example, has a large data center campus announced by a major infrastructure developer.
The I-95 corridor in eastern North Carolina and South Carolina is an emerging zone for power and grid investment supporting both data centers and industrial users, even when headline projects may be sited just outside county lines. For ABC Carolinas members, understanding these geographic concentrations is critical to decisions about where to bid, where to stage crews, and which markets to prioritize for business development in this region.
Data center work tends to create winner-take-most dynamics. A handful of general contractors and key trade partners gain multi-phase backlog, while the rest of the market competes harder for what remains. In Charlotte, the Triangle, and Upstate South Carolina, the same pool of high-quality electrical, mechanical, low-voltage, and fire protection subcontractors is now being pursued aggressively by both data center primes and non-mission-critical builders. This intensifies bid competition for the best subs on every project.
This environment affects pricing across the board. Contractors face tighter margins and more price negotiations. Prime contractors with strong data center backlog may be able to hold or raise margins, but they also face higher subcontractor quotes, more exceptions, and stricter schedule conditions. Smaller Carolinas firms without direct data center exposure may feel pressure to underprice commercial or institutional work to keep crews busy. Material inflation is squeezing already thin profit margins for contractors, making disciplined estimates non-negotiable.
Members should lean on disciplined estimating, clear scope definition, and realistic productivity assumptions to avoid buying work at unsustainable margins. ABC Carolinas’ resources on construction financial management provide practical frameworks for tightening WIP and margin control. Contractors are also shifting away from speculative, high-risk commercial work toward public infrastructure and health care projects, where funding is more predictable and demand drivers differ from the data center cycle.
Relationship strength, prequalification, and past performance in complex, fast-track environments are becoming crucial tie-breakers for trade partners pursuing mission-critical scopes.
Even as national construction employment has grown modestly in 2026, labor shortages remain the number one constraint on growth. In the Carolinas, the gap is acute for specialized trades needed on data center projects. Skilled labor shortages include electricians, plumbers, and HVAC technicians. Job openings in construction remain difficult to fill across roles. The Carolinas also face an experience gap due to retiring superintendents and senior field personnel, compounding the challenge of staffing complex, high-voltage campuses.
Construction relies heavily on immigrant labor, with a quarter of construction workers being foreign-born. Tighter immigration enforcement has worsened labor shortages in construction, and immigration policies have added complexity to labor availability across the industry. Contractors report spending more on recruitment and training initiatives to attract new talent, but the supply of experienced crews is not keeping pace with demand.
High-intensity, power-dense data center projects around Charlotte, the Triangle, and Upstate South Carolina are pulling experienced foremen and journeylevel crafts away from smaller commercial and institutional work, driving wage escalation and retention challenges for firms not on those projects.
In this environment, productivity is as important as headcount. Mission-critical work is pushing faster adoption of robotics, prefabrication, and standardized assemblies-innovation that helps firms do more with finite crews. ABC Carolinas’ coverage of robotics and data center productivity tools explores how these methods are reshaping operations on the ground.
Contractors are expanding workforce development initiatives like apprenticeship programs to address labor shortages. ABC Carolinas’ apprenticeship and craft training programs can help members build a pipeline of entry-level and mid-skill workers who can be deployed across data center and non-data center projects alike, reducing dependence on an increasingly expensive open labor market.
Executives should map their workforce against their backlog: what percentage of your electricians or pipefitters are already committed to multi-year data center or infrastructure jobs, and what does that mean for accepting new work?
The June 2026 nonresidential construction spending numbers confirm that data centers remain a national priority, keeping pressure on global supply chains for switchgear, transformers, generators, cooling equipment, and specialty IT infrastructure. Construction material costs continue to rise year over year. Tariff policy uncertainty complicates long-term construction planning, and environmental regulations are increasing compliance costs for contractors across both states.
Long lead times and allocation constraints for major equipment raise schedule risk. If one campus in the Triangle or Charlotte ties up a large tranche of gear from suppliers, other projects across North and South Carolina may experience delays, even if the civil and structural work is ready.
The practical implications for preconstruction are clear: estimators and project executives should be locking in realistic lead times, confirming supplier capacity, and building schedule and price contingencies into contracts-especially on design-assist or GMP data center work. Early MEP and supplier engagement is essential. Pulling key subcontractors into design and budgeting phases to sequence work, identify prefabrication opportunities, and reduce rework is now a baseline expectation on hyper-compressed data center schedules.
ABC Carolinas’ management education, contract training, and peer groups can help members refine their preconstruction playbooks, including how to write and negotiate escalation clauses, allowances, and schedule relief mechanisms tied to critical equipment supply.
June 2026 data confirms the direction of travel. ABC Carolinas members should be proactively reshaping their pipelines for the next 18 to 24 months, not waiting for the market to decide for them.
Conduct a structured backlog review by sector, geography, and client. Identify concentration risk-too much work with one owner or on one campus-along with thin-margin projects and jobs exposed to equipment, financing, or entitlement delays. Healthcare facility spending is projected to increase 4.6 percent this year, offering diversification for firms looking beyond data centers. Public projects funded by infrastructure legislation remain a stabilizer.
Target a balanced mix: anchor your backlog with funded data center, infrastructure, and institutional work where possible, while avoiding overreliance on speculative office or retail in weakening markets. For firms not yet in the data center core, aligning with power, utility, and industrial support projects that ride the same investment wave is a viable path to sustainable construction of a resilient pipeline.
Sharpen go/no-go criteria. Say no to work that combines low margins, high risk, and uncertain funding-even if it appears to fill a near-term gap. In a tight labor and supply environment, protecting capacity for better opportunities is a competitive advantage. Networking is essential for contractors to navigate these industry challenges, and ABC Carolinas’ economic briefings, leadership education, and business-development roundtables give construction leaders a forum to compare backlog strategies with peers and identify clients and sectors better aligned with their strengths.
Merit shop contractors in the Carolinas can compete successfully in this cycle by combining strong safety performance, reliable workforce development, and operational excellence. Owners of data centers and mission-critical facilities prioritize contractors with proven safety records and robust training programs, given the dense electrical and mechanical systems and 24/7 nature of these facilities. Regular safety training significantly reduces workplace incidents. Documented safety programs are increasingly required on construction sites, and safety training is essential for compliance with regulatory expectations. Training programs help contractors manage evolving safety regulations-a direct competitive edge when pursuing prequalification on mission-critical work.
Structured apprenticeships and career paths are critical for retaining talent who might otherwise be poached by larger firms or national data center specialists. Multi-year electrical or HVAC apprenticeships aligned with mission-critical skills build the crews that data center owners want on their campuses. ABC Carolinas supports member networking through educational programs that connect emerging construction leaders with the education and development they need to advance.
In a market where owners are under pressure to deliver complex projects quickly, fair and open competition among capable firms-rather than mandated labor structures-supports innovation, productivity, and better value for Carolinas taxpayers and private owners. Use this period of strong but uneven construction backlog to double down on culture: safety-first practices, ethical project delivery, and leadership development for foremen and project managers who can handle the intensity of data center and infrastructure schedules.
ABC Carolinas serves as a central hub for economic intelligence, peer learning, and practical tools to manage backlog, risk, and growth during this data-center-led phase of the construction industry. Regular economic updates-including coverage of reports like the ABC June nonresidential construction spending release-help members translate national data into Carolinas-specific decisions on bidding, staffing, and capital planning.
Member resources relevant to this environment include safety training tailored to high-risk, high-voltage jobsites, apprenticeship and craft training pipelines for critical trades, management and estimating courses that strengthen preconstruction discipline, and peer groups focused on financial management and WIP control. ABC Carolinas offers networking opportunities for construction firms, and members can access training and networking resources through the organization. Networking events help contractors connect and share best practices that sharpen their competitive position.
ABC Carolinas’ advocacy teams in Raleigh and Columbia monitor policy developments affecting construction spending, permitting, workforce rules, and energy infrastructure-factors that directly influence future backlog in data centers, manufacturing, and public works. Engage with upcoming events, roundtables, or briefings focused on Carolinas construction market outlook and backlog strategy, and ensure key project executives and emerging leaders are plugged into these conversations.
The June 2026 nonresidential construction spending numbers confirm that data centers are still the primary growth engine in U.S. commercial construction. In the Carolinas, this is translating into strong but uneven construction backlog concentrated around specific corridors and trades. The core challenge for ABC Carolinas members moving forward is not just winning work-it is curating a resilient backlog that balances mission-critical opportunities with diversified sectors, protects margins, and matches commitments to realistic labor and supply capacity.
Treat this cycle as a test of your company’s decision-making discipline. Can you say no to the wrong projects? Can you invest in the right people and technology? Can you use organizations like ABC Carolinas to stay ahead of regulatory, economic, and competitive shifts? While construction spending and the sector mix will continue to evolve in the future, contractors who build strong backlog management habits now-anchored in data, safety, and workforce strength-will be better positioned regardless of how the data center wave eventually crests.
Connect with ABC Carolinas for ongoing briefings, workforce programs, and peer discussions that help refine your firm’s backlog and market strategy heading into the second half of 2026 and beyond.
These FAQs address practical questions Carolinas contractors are asking about backlog, data centers, and 2026–2027 planning that go beyond the main analysis above. The answers draw on current ABC data, regional market conditions, and the operational realities firms face in this concentrated demand environment.
There is no single right percentage, but many Carolinas firms aim to keep any one sector-data centers included-below roughly half of total backlog to avoid concentration risk. Use ABC’s backlog tools and your internal financial reviews to set firm-specific targets. Complement data center work with public infrastructure, health care, education, and industrial support projects, which tend to have different funding and demand drivers. This diversification protects your businesses if a major campus is delayed or a single owner pauses investment.
Focus on scopes that feed data center campuses: site utilities, access roads, substations, and industrial buildings near emerging corridors. Partner as a trusted trade partner to primes with existing data center relationships, and build a track record in mission-critical adjacencies like hospitals or labs that demonstrate your capability in high-specification environments. ABC Carolinas networking events and peer groups are effective places to connect with GCs and trades already active in data centers and to learn what prequalification and safety standards are required for entry.
At minimum, conduct quarterly reforecasting of backlog, staffing, and cash flow if your firm carries 9 to 12 months of work. Firms with shorter or highly concentrated pipelines should move to monthly reviews. Each reforecast should incorporate updated estimates on awarded data center and infrastructure work, labor availability by trade, construction spending trends, and any major owner schedule changes. This effort helps you maintain a realistic picture and avoids overcommitting crews.
Watch for rapidly rising unbilled work-in-progress, repeated schedule extensions on the same owner or sector, overreliance on a single large campus or public program, growing dependence on overtime to hit milestones, and a pattern of accepting change orders simply to keep crews busy. These indicators often appear before cash flow problems surface. ABC Carolinas’ financial management education and peer benchmarking can help you stress-test your backlog and take corrective action-rebalancing sectors, improving contract terms, or slowing new commitments-before the problems compound.
ABC Carolinas offers executive roundtables on market outlook, workshops on construction financial management and WIP control, safety leadership courses that support prequalification on mission-critical work, and apprenticeship and craft education programs that stabilize labor planning. Encourage your estimators, project executives, and HR or workforce leaders to participate so that backlog, pricing, and staffing decisions are made from a shared, data-driven understanding of the Carolinas construction market. The efforts your leadership team puts into these programs pay dividends in smarter pursuit decisions and stronger sustainability of your pipeline through market cycles.
