Key Highlights
- Louisiana recorded the second-highest data center construction starts in the U.S. in 2025.
- Despite a national slowdown in office construction, the state is seeing broad-based growth across sectors.
- Nonresidential construction in Louisiana is projected to grow 26.9%, even excluding office projects.
Louisiana’s construction market is showing strong momentum beyond its recent surge in data center development. In 2025, data centers played a major role in driving nonresidential building activity nationwide, particularly within the Office subcategory, which accounted for roughly 90% of such projects.
The state stood out as a major beneficiary, recording the second-highest data center construction starts in the country, with approximately $15 billion in project activity. This surge positioned Louisiana as a key player in the evolving data center landscape.
However, while data centers continue to support growth, the state’s construction outlook for 2026 suggests a more diversified expansion across multiple sectors.
National Growth Remains Modest and Uneven
According to ConstructConnect, total nonresidential building starts across the U.S. are expected to grow by just 1.5% year-over-year in 2026. This modest increase is largely driven by large-scale projects, particularly in the Office category linked to data center development.
The Office subcategory itself is forecast to grow by nearly 50%, continuing its strong upward trend. However, other major sectors such as Educational and Industrial construction are expected to decline.
When the Office category is excluded, national nonresidential building activity is projected to drop by 8.7%, highlighting underlying weakness in the broader construction market.
Louisiana Sees Broad-Based Construction Growth
In contrast to the national picture, Louisiana is expected to experience growth across most segments of its construction industry. Although Office construction in the state will remain above historical levels, it is unlikely to match the record highs seen in 2025.
Notably, even without counting Office projects, Louisiana’s nonresidential building starts are projected to increase by 26.9% year-over-year, signaling a shift toward a more balanced development pipeline.
This growth is being driven by expansion across seven of the eight nonresidential construction sectors, with strong gains expected in Educational, Medical, and Retail construction. Industrial activity is also projected to remain robust, helping sustain overall spending despite a slight dip in that category.
Infrastructure and Housing Add to Growth Momentum
Beyond nonresidential construction, Louisiana is also witnessing rising activity in the civil and residential sectors. Investments in infrastructure, utilities, and housing are expected to increase as the state works to support growing demand driven by earlier industrial and data center developments.
This broader growth suggests that the impact of large-scale investments is now extending into supporting sectors, creating additional opportunities across the construction ecosystem.
Louisiana’s construction market reflects a shift from concentrated growth driven by data centers to a more diversified expansion. While national trends indicate reliance on a single category, the state is benefiting from wider participation across industries.
For construction firms, this highlights the importance of identifying regional opportunities. Even as broader markets face uneven growth, Louisiana demonstrates that strong performance can emerge across multiple sectors when investment flows are well distributed.