Construction News for the Week Ending January 23, 2026
Construction input prices surge in late 2025, impacting data centers
Construction input prices rose in the second half of 2025, primarily driven by materials like copper and electrical components, particularly impacting data center construction. This increase, reversing a period of relative stability, is expected to continue into 2026 due to sustained demand and supply constraints, particularly for copper. While steel prices remain stable, concrete and masonry prices are elevated despite constrained demand.
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Bipartisan legislation funds transportation through FY26 with increased public transit support
U.S. House and Senate appropriators agreed on bipartisan legislation to fund transportation through fiscal year 2026. The bill provides $21.1 billion to public transportation, a $168 million increase over FY 2025, but includes cuts to Amtrak funding and the Federal-State Partnership for Intercity Passenger Rail Grant Program. The legislation reasserts Congress’s role in funding and requires the DOT to notify Congress about terminated or reduced grants.
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Jacobs chosen for $200 million San Jose-Santa Clara wastewater facility Modernization
Jacobs was selected as the design-build contractor for a $200 million modernization of the San Jose-Santa Clara Regional Wastewater Facility. The upgrades will improve reliability, increase biogas production, and reduce biosolids production.
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LA unions align contracts for 2028 Olympics bargaining
Los Angeles labor unions are aligning contracts to expire in January 2028, aiming to leverage bargaining power during the Olympics. They are pushing for demands like building housing units, a moratorium on short-term rentals, and protections for immigrant workers. The Olympics present a unique opportunity for organized labor to secure gains, as seen in past Games.
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Greenland data center project faces geopolitical and logistical challenges
A former Trump administration official is planning a multi-billion-dollar data center project in Greenland, aiming for 300 MW capacity by 2027 and 1.5 GW by 2028. The project, backed by investors, faces challenges in securing land and approvals from local authorities, particularly due to geopolitical tensions surrounding Greenland. While the project leverages Greenland’s low temperatures and potential hydroelectric power, it must overcome logistical hurdles and the high costs of Arctic construction.
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Texas contractor wins first phase of $473M infrastructure project
The Texas DOT will invest $473 million to reconstruct U.S. 90 in western San Antonio, anticipating a 100% increase in traffic by 2045. The project, awarded to Jordan Foster Construction, will expand the highway to six lanes and include improvements to intersections, sidewalks, and the addition of shoulders and auxiliary lanes.
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Expansion Projects in Maryland, Montreal, and Nebraska
Kratos opened a 55,000-square-foot facility in Maryland to support hypersonic testing and launch operations. Bombardier announced a new 126,000-square-foot manufacturing center in Montreal to expand its industrial footprint. Becton, Dickinson and Co. is investing over $110 million to expand its prefilled syringe manufacturing facility in Nebraska.
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Genentech Expands biomanufacturing in North Carolina
Genentech is doubling its investment in a new biomanufacturing facility in Holly Springs, North Carolina, to $2 billion. The expansion will increase production, create 500 jobs, and be operational by 2029. The facility will produce weight-loss treatments and other metabolic medicines.
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Garney acquires Emery & Sons for pacific northwest expansion
Garney, a national water and wastewater contractor, acquired Emery & Sons Construction Group to strengthen its infrastructure presence in the Pacific Northwest. The acquisition brings Emery & Sons’ experience in underground utility and heavy construction to Garney, supporting its long-term vision of becoming a full-service water solutions provider. Both companies will continue to operate under their existing names and leadership teams.
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Turner launches First Equipment Company for U.S. projects
Turner Construction launched First Equipment Company (FEC), an equipment rental and site services company, to support projects across the U.S. and its trade contractor partners. FEC offers a centralized platform for equipment rental and site services, including heavy machinery, temporary power, and site controls.
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Flat nonresidential construction spending in October amid optimism for 2026
Nonresidential construction spending remained flat in October, with a slight year-over-year decline. While data center construction continues to drive growth, manufacturing investment has decreased significantly, impacting overall spending. Despite this, contractors remain optimistic about the first half of 2026, particularly for data centers and power projects.
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Construction project stress eases in December despite rising abandonments and funding disruptions
Construction project stress eased sharply in December, with the Project Stress Index declining 18.7% month over month. While the improvement suggests increased confidence in the industry, private project abandonments increased due to rising material costs and the government shutdown disrupted public project funding.
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$157 million contract awarded for 22nd Street bridge project in Tucson
A Granite Construction-led joint venture won a $157 million contract to widen and replace the 22nd Street Bridge in Tucson, Arizona. The project, funded by the city of Tucson and the Regional Transportation Authority, will replace the current four-lane bridge with a six-lane span and rebuild 22nd Street.
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Growth in data centers amid labor and cost challenges
The data center and power project construction markets are expected to grow in 2026, while other sectors like transportation and infrastructure face weaker sentiment. Contractors are struggling with labor shortages, with 82% reporting difficulty filling hourly positions and 80% facing challenges for salaried roles. Additionally, immigration enforcement and tariffs are impacting workflows and increasing costs for contractors.
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