MOCA Systems, Inc. (MSI) has released the Q3 2026 edition of Today’s Construction Economy, from the company’s research group. The report indicates that much of today’s construction news cycle, from jobsite robots and reshoring to headlines about data-center “pauses,” is obscuring the forces that are actually shaping the market. While those stories dominate industry conversation, the data instead points to three more durable drivers of cost, schedule, and labor availability in U.S. nonresidential construction.

Among the most significant pressures are electric-grid capacity constraints delaying data center development, tariff-driven materials inflation beginning to influence construction bids, and labor shortages exacerbated by immigration enforcement in some regions.

“While many headlines this quarter have focused on the importance of jobsite robots, reshoring, and data-center pauses, our data point to something else,” said Brandon Michalski, chief economist at MSI. “The impact story is structural: power access, tariff-driven materials costs, and selectively constrained labor. For owners planning a data center or industrial project, the grid interconnection queue, not permitting or construction, is now the critical path.”

Key findings include:

  • Power availability is becoming the primary constraint on data center construction. Data center construction spending is up approximately 23% year over year, but the report finds that electric-grid interconnection delays are increasingly determining when projects can move forward. Access to power is throttling new development even amidst accelerating AI infrastructure investment.

  • Construction has become a two-speed market. Manufacturing construction has declined approximately 22% year over year as CHIPS Act and IIJA-related stimulus fades, while data center construction continues to expand rapidly. National construction averages increasingly conceal significant differences across sectors, with data centers, infrastructure and other megaprojects driving growth.

  • Tariff-driven materials inflation is beginning to influence construction costs. Although contractors have not yet fully passed higher material costs into bids, pricing pressure is expected to become more visible as existing contracts are completed and new work is bid. The report identifies the timing gap between rising input costs and bid pricing as the most immediate cost risk.

  • Labor shortages remain a structural challenge despite signs of a moderating job market. Construction unemployment increased to 4.1% in May, up from 3.5% a year earlier, yet the industry is still projected to need approximately 349,000 additional workers in 2026. The report also identifies immigration enforcement as an additional factor in tightening labor availability in some regions.

The full report can be found here.

About MOCA Systems, Inc.

MOCA Systems, Inc. (MSI) is a leading services and software provider for the Architecture, Engineering, and Construction (AEC) industry. MSI delivers innovative solutions to Owners, Engineers, Architects, and Contractors working on some of the world’s largest, most complex construction projects. A profitable firm with offices across the United States and partners around the globe, MSI’s services and technology offerings ensure that projects are delivered on time and on budget while meeting all Owner expectations. To learn more, visit mocasystems.com.

About Today’s Construction Economy Report

Prepared by MOCA Systems, Inc.’s Chief Economist Brandon Michalski, Today’s Construction Economy is a quarterly must-read for industry leaders seeking comprehensive, data-driven analysis for the nonresidential construction sector.

This in-depth report synthesizes insights from hundreds of trusted sources, including news, analytics, and industry experts, to provide timely, actionable intelligence to thousands of construction professionals. By integrating hard economic data with expert commentary, Today’s Construction Economy offers clear, informed analysis to help stakeholders navigate market shifts, anticipate trends, and make confident strategic decisions.

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