Why the US is now constructing more data center space than offices
The U.S. is officially spending more money building data centers than office spaces, according to Bloomberg. A recent boom in data center development paired with a decrease in office construction nationwide, led to the historic shift.
According to the U.S. Census Bureau, data center construction spending hit $3.6 billion at the end of 2025, compared with office construction spending, which dropped to $3.5 billion.
What’s causing the decrease in office construction?
Since the COVID-19 pandemic, businesses have struggled to fill offices, resulting in closures and slower construction rates. Remote and AI work have taken over the workforce, lending a hand to the decrease in office necessity.
According to new data from CommercialCafe, a property management software, 17.6% of offices nationwide were empty as of February. Rates vary from city to city, with the highest vacancies in Seattle, at 25%.
Bay Area cities, along with Austin, Detroit and San Diego also have vacancy rates above 20%.
However, things could be changing. CommercialCafe found that vacancy rates decreased in 19 of the 25 largest markets it analyzed. But it’s not because people are returning to the office. Rather, the company attributed the drop to decommissioning underused office space, and converting it for other uses.
Another key in the construction shift as we look to the future: AI.
“AI is utilized for automating day-to-day jobs,” Andy Cvengros, with the brokerage Jones Lang LaSalle Inc., told Bloomberg. “It’s going to directly impact the amount of office space people need.”
Bloomberg specifically pointed to Columbus, Ohio, where Meta built a computing hub. Since they broke ground, Amazon, Google and Microsoft also announced plans to construct data centers in the area.
Offices are still being constructed
The latest numbers don’t mean office space is over. As of February, Boston, New York City, Dallas and Los Angeles are each constructing more than 2 million square feet of office space.
While the amount of new office space remains lower than pre-pandemic norms, CommercialCafe said the decline has leveled off in the past two years. Still, the company noted that a return to pre-2020 rates is unlikely.
Ella Rae Greene, Editor In Chief
