Dodge Construction Network reported in early May 2026 that nonresidential construction planning accelerated in April following a slow start to the year, with data centers continuing to serve as the largest single driver behind growth in planned projects. The report indicates that the surge in data center activity has more than offset softer planning trends in several other nonresidential categories.
The trend has direct implications for general contractors, subcontractors, design professionals, equipment suppliers, and lenders active in the Southeast — a region that has seen sustained interest from hyperscale operators and colocation developers. Owners and developers structuring data center campuses, electrical and mechanical subcontractors with capacity in mission-critical work, surety providers, and commercial real estate investors are all positioned to feel the effects of continued planning growth. At the same time, contractors working on traditional commercial, institutional, or industrial projects may find themselves competing for skilled labor, long-lead equipment, and subcontractor availability with data center work that often carries premium pricing and aggressive schedules.
Clients with active or anticipated involvement in data center projects should consider reviewing how their standard contract forms address the issues that tend to surface on these jobs: liquidated damages and milestone schedules driven by tenant commissioning dates, long-lead procurement of switchgear and generators, allocation of risk for utility interconnection delays, escalation and supply chain clauses, confidentiality obligations imposed by end users, and indemnity provisions tied to integrated systems. Owners and contractors alike may also wish to evaluate insurance programs, including builder's risk and professional liability coverages, against the technical risk profile of mission-critical work. Subcontractors and suppliers approached to take on data center scopes — particularly those new to the sector — should consider the implications for their bonding capacity, workforce, and existing project commitments before signing on. As always, contracting strategies and risk allocation choices should be discussed with counsel familiar with the specific project, jurisdiction, and counterparties involved.
Hudson Lambert Parrott represents owners, contractors, subcontractors, and suppliers across the Southeast and continues to monitor developments affecting the construction industry.