Construction News for the Week Ending March 27, 2026
Turner Construction Begins $900M Geisinger Expansion
Turner Construction has begun vertical construction on an 11-story, 600,000-square-foot patient tower at Geisinger Wyoming Valley Medical Center in Wilkes-Barre, Pennsylvania. The $900 million expansion will increase patient beds, operating rooms, and support Geisinger’s goal of providing private rooms. The project is expected to create 3,800 construction jobs and generate $1 billion in local economic impact.
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Georgia’s $4.6B SR 400 Express Lanes Project Begins in April
Major construction on Georgia’s $4.6 billion State Route 400 Express Lanes project will begin in April. The 16-mile corridor will add tolled express lanes to manage traffic congestion, with the project delivered and maintained by SR400 Peach Partners under a 56-year public-private partnership.
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Construction Input Prices Surge 12.6% Amid Energy Concerns
Construction price inputs rose 12.6% annually in early 2026, driven by higher energy prices. The increase in oil prices due to the Iran conflict could further escalate construction material costs, potentially impacting profit margins and project decisions. While contractors remain optimistic, the rapid ascent of input prices warrants close monitoring.
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U.S. Unemployment Claims Drop Amid Stable Layoffs
U.S. unemployment benefit applications fell last week to 205,000, remaining within a healthy range despite a tepid labor market. While layoffs have been stable, high-profile companies like Morgan Stanley and Amazon have announced job cuts. The weak February employment data, coupled with rising inflation and the Iran war, has led the Federal Reserve to maintain its benchmark lending rate.
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Nashville Airport Expansion Begins
A joint venture of Messer Construction and Sundt Construction broke ground on a $900 million expansion at Nashville International Airport. The expansion, part of the $3 billion New Horizons plan, includes a new consolidated rent-a-car system, a parking garage, and rental car facilities. The project is funded by bonds, grants, and passenger facility charges, and is expected to be completed by 2029.
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California’s Office-to-Residential Conversion Surge
California is experiencing a surge in office-to-residential conversions due to high vacancy rates and a housing shortage. Los Angeles recently adopted a Citywide Adaptive Reuse Ordinance to incentivize conversions of older commercial buildings into residential units. While these policies aim to address the housing crisis, economic barriers and labor requirements continue to pose challenges for developers.
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New York’s Data Center Boom: Challenges and Opportunities
New York’s data center market is booming due to high demand for AI infrastructure, but faces challenges from an aging electrical grid and strict environmental regulations. The city is unlikely to host massive hyperscale data centers like Northern Virginia, but opportunities exist for smaller, specialized facilities like edge data centers and retrofits. Solving the power issue is crucial for the data center construction boom to extend to New York.
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Decline in Private Nonresidential Construction Spending
Private nonresidential construction spending fell 0.4% in January, marking a four-month decline, largely due to a sharp pullback in manufacturing construction. This decline, attributed to rising costs and geopolitical tensions, outweighed gains in data center construction, which saw a 2% increase. The overall trend of declining private construction spending is expected to continue due to tariff uncertainty and economic concerns.
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Simplifying Federal Grants for Communities
Applying for federal grants is a complex and time-consuming process, especially for small and under-resourced communities. The Streamlining Federal Grants Act aims to simplify this process by making funding notices shorter and easier to understand, improving grant-management software, and requiring federal agencies to consult with local governments. City leaders can improve their chances of success by building connections, hiring lobbyists, preparing in advance, and being intentional about the grants they pursue.
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Nashville Airport Expansion Begins
A joint venture of Messer Construction and Sundt Construction broke ground on a $900 million expansion at Nashville International Airport. The expansion, part of the $3 billion New Horizons plan, includes a new consolidated rent-a-car system, a parking garage, and rental car facilities. The project is funded by bonds, grants, and passenger facility charges, and is expected to be completed by 2029.
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February Construction Starts Decline Amid Mixed Sector Trends
Construction starts fell 13.2% in February, driven by a 49.4% drop in nonbuilding activity, particularly in electric power and utility construction. However, nonresidential and residential building starts increased by 17.8% and 8.3%, respectively. Notable February projects included a $3 billion Google data center in Texas and a $3 billion Polaris Forge 2 AI data center in North Dakota.
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Ohio State University Hospital Opens Ahead of Schedule
A joint venture of Walsh and Turner Construction completed a $1.5 billion hospital at Ohio State University. The 26-story Wexner Medical Center University Hospital tower, featuring 820 beds and advanced medical facilities, opened ahead of schedule despite a construction delay in 2022.
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AI Boosts Demand for Skilled Trades
Demand for skilled trade workers has surged since late 2022, driven by the growth of AI infrastructure. This demand, particularly for roles like robotics technicians and HVAC engineers, is creating a hiring bottleneck and limiting growth. While AI is often seen as a threat to jobs, this report highlights its role in driving demand for skilled trades.
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Brent Spence Bridge Corridor Project Approved
The Ohio DOT and Kentucky Transportation Cabinet received approval to finalize construction plans for the $4.4 billion Brent Spence Bridge Corridor project. The project, led by the Walsh-Kokosing JV, aims to alleviate congestion on I-71, I-75, and I-74 by building a new companion span, improving the existing bridge, and upgrading roadways and pedestrian paths.
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New York’s Data Center Shift: Smaller Facilities Over Hyperscale
New York’s data center market is booming due to high demand for AI infrastructure, but faces challenges from an aging electrical grid and environmental regulations. Instead of large-scale hyperscale projects, the city should focus on smaller, specialized facilities like AI centers, edge data centers, and colocation sites.
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$33 Billion Power Project in Ohio
A public-private partnership between SoftBank Group, AEP Ohio, and the U.S. Departments of Energy and Commerce will build 10 gigawatts of power generation, including 9.2 GW of natural gas, to power a data center in Pike County, Ohio. The Portsmouth Consortium, comprising 21 firms including Bechtel and Kiewit, will collaborate on the project, which is valued at $33 billion and falls under the U.S.-Japan Strategic Trade and Investment Agreement.
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$889 Million Water Infrastructure Investment in Western States
The Department of the Interior will invest $889 million in water infrastructure projects across six Western states, with a focus on upgrades to aging systems in California. The Delta-Mendota Canal will receive the largest allocation of $235 million for rehabilitation and a new canal segment.
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Elon Musk’s $25B Terafab Plan in Austin
Elon Musk announced plans to build two semiconductor factories in Austin, Texas, called Terafab, to produce advanced chips for SpaceX and Tesla. The factories will manufacture chips for Tesla’s cars and humanoid robots, as well as high-powered chips for space applications, including SpaceX’s proposed Orbital Data Center System. The project, valued at nearly $25 billion, aims to address the global shortage of AI chips and improve chip design through a single-building production process.
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Brent Spence Bridge Corridor Project Approved
The Ohio DOT and Kentucky Transportation Cabinet received approval to finalize construction plans for the $4.4 billion Brent Spence Bridge Corridor project. The project, led by Walsh Construction and Kokosing, aims to alleviate traffic congestion on I-71 and I-75 by constructing a new “companion” span across the Ohio River. This major infrastructure project is expected to break ground this spring.
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Judge Orders Resumption of Chicago Transit Funding
A federal judge ordered the U.S. Department of Transportation and Federal Transit Administration to resume payments for Chicago’s Red Line Extension and Red and Purple Modernization projects by Friday. The ruling grants a temporary restraining order against the government, allowing the projects to avoid costly delays. The funding had been withheld due to a policy change regarding diversity and inclusion programs.
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California Allocates $848 Million for Rail Projects
The California Transportation Commission allocated $848 million, primarily for rail projects, to improve mass transit and freight operations. This includes $273 million for rail systems in the Bay Area and Southern California, with $100 million for a BART tunnel expansion.
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Data Center Construction Slows Amid High Demand
Data center construction slowed for the first time in six years during the second half of 2025, despite record demand for AI and cloud computing services. Structural factors like power constraints, coupled with chip shortages, led to a 50% decrease in construction during the fourth quarter. However, the industry saw significant growth, with global data center capital expenditure surpassing $700 billion and major companies like Amazon, Google, and Microsoft significantly increasing their investments.
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