Data centre boom helps push US contractors’ backlogs further out

A Meta data centre under consruction in Arizona, US. (Image: Adobe Stock)

That is according to the Associated Builders and Contractors’ (ABC) Construction Backlog Indicator and Construction Confidence Index tables for the month.

An ABC survey running from 20 June to 7 July found that the largest contractors had a backlog in June this year that was nearly two months longer than a year ago. The smallest contractors have a slightly longer backlog than a year ago, although it has fallen for contractors whose annual revenue is in the $30-100 million range.

The ABC also reported improved levels of confidence among contractors for sales and profit margins, while the reading for staffing levels fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

ABC chief economist Anirban Basu said, “Despite a wide array of headwinds and disappointing construction spending data in recent months, backlog rebounded to 8.7 months in June, the same level as in April. The durability of contractor backlog is partially due to the ongoing boom in data centre construction; One in seven ABC members is currently under contract to perform work on a data centre.

“In addition to longer backlog, contractors remain broadly optimistic, with 3 in 5 contractors expecting their sales to rise during the second half of 2025. Notably, this survey predates the most recent trade policy announcements, and one in five contractors had a project interrupted or paused due to tariffs in June. With some of the newest import taxes putting upward pressure on construction input prices, profit margin expectations may face pressure in the months to come.”