Construction News for the Week Ending February 27, 2026
I-10 Wild Horse Pass Corridor Upgrade
The Arizona Department of Transportation contracted the Coffman-Fisher design-build team to improve the I-10 Wild Horse Pass Corridor. The $410 million project, part of a $1 billion program, will add lanes and replace the entire stretch with concrete for a 30-year lifespan.
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Supreme Court Strikes Down Trump Tariffs, Uncertainty Remains
The Supreme Court struck down most of Trump’s tariffs, leading to potential material price reductions for contractors. However, the administration plans alternative tariff methods, creating uncertainty and potentially counteracting the decision’s benefits.
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Record High Hotel Construction Pipeline in Q4 2025
The global hotel construction pipeline reached a record high of 15,922 projects in Q4 2025, with the U.S. leading at 39% of the total. Higher-tier segments, particularly luxury and upper upscale, drove pipeline growth, with the luxury segment reaching a record 1,328 projects. The conversion pipeline also reached a record high of 2,815 projects, up 13% year over year.
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State AGs Sue Trump Over Program Funding Cuts
Thirteen state attorneys general filed a lawsuit against the Trump administration, challenging the termination of funding for energy and infrastructure programs. The lawsuit alleges the cuts were politically motivated and violated the Constitution’s separation of powers and the Administrative Procedure Act. The plaintiffs argue that only Congress has the power to appropriate funding and define how federal programs are administered.
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Amazon’s $12 Billion Louisiana Data Center Investment
Amazon will invest $12 billion in a multi-site data center campus across Caddo and Bossier Parishes in Louisiana. The project, which includes investments in local water infrastructure and a community fund, will create hundreds of high-paying jobs and support AI and cloud computing.
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Hudson Tunnel Project Resumes Amid Funding Dispute
The Gateway Development Commission (GDC) restarted work on the Hudson Tunnel Project after a funding dispute with the Department of Transportation (DOT). The DOT paused funding for an administrative review of GDC’s contracting goals, leading to a lawsuit and a court order to resume payments. However, the DOT is appealing the order and has not confirmed future payments, creating uncertainty for the project’s funding and construction schedule.
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Austin Awards $60M Contract for Light-Rail Line
Austin, Texas awarded a $60 million contract to begin pre-construction activities for its first light-rail line, connecting the University of Texas at Austin with downtown. The 10-mile line with 15 stations is expected to be completed in 2033.
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January Construction Starts Rise 0.7% on Megaprojects
Construction starts increased by 0.7% in January, driven by nonbuilding activity, particularly three megaprojects. Nonresidential and residential construction saw declines, while manufacturing construction surged. Year over year, nonbuilding construction saw a significant 46.1% increase, offsetting declines in other sectors.
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Autodesk’s Record $200M Investment in World Labs
Autodesk invested $200 million in World Labs, an AI startup focused on physical AI and generating 3D models. This investment, the largest in Autodesk’s history, highlights the growing trend of real-world AI tools in the construction industry. World Labs’ AI-based tool, Marble, enables users to create 3D environments and objects from images, video, or text.
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WSP CEO Reassures on AI Impact, Reports Strong Financials
WSP CEO Alexandre L’Heureux reassured investors that the company’s business model is not threatened by AI, emphasizing its expertise in physical projects and a “machine-in-the-middle” approach to AI integration. WSP reported a 4% year-over-year revenue increase to CA$4.85 billion for Q4 2025 and a 13% increase to CA$18.3 billion for the full year. The company’s backlog reached a record CA$17.1 billion, a 10% increase year-over-year.
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