The construction industry faces a shifting landscape as the Trump administration sets about reshaping some of the country’s most impactful federal policies.
With changes in infrastructure priorities, regulatory rollbacks and economic shifts, contractors and developers are bracing for both new opportunities and potential setbacks. Some sectors, such as data centers and infrastructure, are set for rapid growth, while clean energy projects and high-speed rail could see federal support dwindle. Other types of projects have a mixed or uncertain outlook under the new administration.
Below, Construction Dive looks at the construction sectors poised to gain momentum under President Donald Trump’s second term:
Data centers
Data center construction growth should surge to new heights this year after a strong pace of activity in 2024, according to the Associated General Contractors of America’s annual outlook survey.
About 42% of contractors surveyed by AGC, up from 20% last year, expect the value of projects in the sector to be higher in 2025 than 2024. JP Morgan anticipates spending on data centers to boost overall U.S. GDP by about 10 to 20 basis points from 2025 to 2026, according to Reuters.
That push is being fueled by big tech companies. For example, a new joint venture among tech giants OpenAI, Softbank and Oracle, dubbed Stargate, plans to invest $100 billion in artificial intelligence infrastructure, with the potential to scale up to $500 billion by 2028. Trump announced the initiative at the White House, calling it essential to keeping the U.S. ahead in AI innovation. He pledged to fast-track permitting and support energy projects to power the data center builds.
“[Data center construction] has emerged as one of the fastest-growing construction markets,” said Brian Kassalen, principal and construction industry leader at Chicago-based Baker Tilly, an advisory, tax and assurance firm. “Even before the announcement of Project Stargate, data center construction was a top construction market with significant growth forecasted in 2025 and beyond.”
Earlier this year, Chicago-based Clayco unveiled a new business unit to accelerate its data center construction efforts. CEO Anthony Johnson expects the firm’s revenue from data center construction alone to reach over $4.6 billion by 2026, up from $3.6 billion in revenue in 2024.
“The hyperscale data center market is projected to grow 10% to 20% annually in the next five years,” said Johnson. “… There’s still a tremendous amount of opportunity for us to build both in terms of projects and as an organization in this sector.”
Energy projects to power AI
That momentum in the data center sector will propel activity in the power sector as well, said Kassalen.
U.S. data center energy consumption will likely triple in the next three years and could consume as much as 12% of national energy usage, according to the Department of Energy. That leaves ample room for future power projects, said Kassalen.
“This surge in energy demand is fueled by trends such as the explosive growth of AI, the expansion of cloud computing and ongoing advancements in digital transformation,” said Kassalen. “These developments are expected to sustain and accelerate demand for new data centers, creating opportunities for power construction projects.”
But those forecasts could be overstated. China-based DeepSeek claims to have developed a more cost-efficient AI model, which has led some investors to question whether these massive data centers will remain necessary.
Blackstone COO Jon Gray acknowledged concerns from investors during a recent earnings call, but maintained broader AI adoption should still sustain demand for data center construction.
“We’ve obviously been spending a lot of time the last week looking at the impact of DeepSeek,” said Gray during the earnings call. “We still think there’s a vital need for physical infrastructure, data centers and power.”
About 32% of contractors surveyed by AGC, up from 25% last year, expect the value of power construction projects to be higher in 2025 than 2024. That’s buoyed by Trump’s plans to support domestic oil and natural gas production, said Kassalen. Tech giants are also increasingly turning to nuclear power to meet these growing energy demands, according to CBRE, a Dallas-based commercial real estate services firm.
Kassalen added Trump’s policy direction suggests there may be a rollback of many restrictions on drilling, for both onshore and offshore projects. Trump issued directives to speed up permitting for energy infrastructure projects, using emergency regulations under laws like the Clean Water Act to ensure faster approvals for oil, gas, nuclear and coal developments.
These will lead to a greater demand for contractors that can perform this type of work, Kassalen said.
“From a construction standpoint, the push for expanding nuclear and fossil fuel projects could significantly benefit the industry. Increased energy development would drive demand for related infrastructure, such as new roads, pipelines, processing facilities and other support systems,” said Kassalen. “This prioritization of fossil fuels, paired with potential support for nuclear energy, positions the construction sector to play a key role in supporting the nation’s energy goals.”
Manufacturing projects
The onshoring of U.S. manufacturing facilities, a key focus of the Biden administration, appears likely to flourish under the Trump administration as well, said AGC CEO Jeffrey Shoaf during the trade association’s construction outlook webinar.
Over the past several years, efforts to revive American manufacturing spurred over $988 billion in private company investment after decades of offshoring. These projects, scattered across the country, include multibillion-dollar biotechnology facilities, chip fabrication plants and electric vehicle battery factories.
Trump’s America First plan includes enhanced tax breaks and streamlined permitting processes for manufacturing plants, according to The Bonadio Group, a Rochester, New York-based accounting and consulting firm. These measures aim to reduce barriers, boost domestic production and position the U.S. as a leader in the manufacturing sector.
Contractors remain optimistic momentum in the space will continue, said Ken Simonson, AGC chief economist, during the AGC webinar. About 25% of contractors surveyed by AGC, up from 15% last year, expect the value of manufacturing construction projects to be higher in 2025 than 2024.
Roads and bridges
With Trump taking office, expect “a greater focus on more traditional infrastructure like roads and bridges,” according to Alex Etchen, vice president of government relations with Associated General Contractors of America.
With the Infrastructure Investment and Jobs Act expiring in September 2026, the Trump administration will have the opportunity to craft its own surface transportation reauthorization bill, shaping transportation policy for years to come, experts at Miami-based law firm Holland & Knight wrote in a brief. That likely means more emphasis on highways.
“Although some GOP lawmakers are supportive of high-speed rail, interstate highway development, which congressional Republicans view as more beneficial to rural Americans, will undoubtedly take precedence,” according to the brief.
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