Construction Backlog Rises for Second Consecutive Month, Backed Again by Data Center Projects

WASHINGTON, D.C. — Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.7 months in September, according to an ABC member survey conducted Sept. 21 to Oct. 5. The reading is up 0.2 months on both a monthly and yearly basis.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Commercial and institutional backlog, which dipped in the middle of 2026, rose to the highest level since July 2025. Heavy industrial backlog, while still up 0.5 months over the past year, fell to its lowest level since March.

“Backlog increased for the second straight month in September as data center work continues to keep contractors busy,” said ABC Chief Economist Anirban Basu. “The 15% of ABC members under contract to work on data centers averaged 11.3 months of backlog in September, a full three months more than ABC members that are not. This disproportionately benefits the largest contractors; 39% of contractors with greater than $100 million in annual revenues have data center work right now compared to just 1 in 10 contractors with fewer than $100 million in annual revenues.

“At the same time, rising materials and labor and borrowing costs continue to put pressure on contractors,” said Basu. “More than 1 in 4 contractors expect their profit margins to contract over the next six months, the highest share since November 2025. Those same cost pressures have suppressed sales expectations, which also fell to an 11-month low in September.”