2026 Construction Outlook: The Sectors Driving America's Biggest Building Boom
From data centers and cold storage to controlled environment agriculture and insulated metal panel systems, specialized construction is surging while traditional commercial markets realign.
By Terrapin Construction Group | Published February 13, 2026
The U.S. construction industry is projected to grow 5.6% in 2026, reaching $1.27 trillion in total spending. But behind that headline number lies a deeply bifurcated market. Demand for conventional office and retail space remains soft, while a handful of high-performance sectors — data centers, cold storage, controlled environment agriculture (CEA), and mission-critical industrial facilities — are generating unprecedented project pipelines.
For contractors and building owners operating in these spaces, 2026 represents both an enormous opportunity and a pressure test. Labor shortages, tariff-driven material cost increases, and evolving energy codes are raising the stakes for every project. The firms best positioned to thrive are those with deep specialization, established supply chains, and proven track records in high-performance building envelope systems — particularly insulated metal panels (IMPs), which have become the building material of choice across nearly every growth sector.
Data Center Construction: The $88 Billion Pipeline
No sector has reshaped the U.S. construction landscape more dramatically than data centers. Total spending on data center construction starts reached an estimated $77.7 billion in 2025 — a staggering 190% year-over-year increase. And the pipeline for 2026 is even larger: ConstructConnect is already tracking 76 projects valued at more than $88 billion slated to begin within the next six months, a 13% increase over all of 2025.
The Associated General Contractors' (AGC) 2026 Outlook Survey reflects this momentum. When asked about data center project availability, 65% of contractors expected an increase and only 8% expected a decline — making it the most bullish sector in the entire survey, far ahead of power construction at 34%.
Key Drivers
The Stargate Project: A $500 billion, multi-year commitment from OpenAI, SoftBank, Oracle, and MGX to build AI infrastructure across Texas, New Mexico, Ohio, and the Midwest.
Hyperscaler Expansion: Amazon, Microsoft, Google, and Meta collectively plan hundreds of billions in capital expenditure for 2026. Meta's capital spending alone could reach $100 billion.
Power Infrastructure: ConstructConnect projects power infrastructure spending to reach $27.8 billion in 2026, rebounding from $16.5 billion in 2025, as grid capacity constraints drive utility investment.
Workforce Demand: The American Edge Project estimates 4.7 million temporary construction jobs will be generated by the 2,788 data centers announced or under construction.
What This Means for Building Envelope Specialists: Data centers require precision-engineered thermal and vapor barriers to maintain controlled environments for sensitive computing equipment. Insulated metal panel systems are increasingly specified for data center wall and ceiling assemblies due to their superior R-values, airtight sealing capabilities, and rapid installation timelines — exactly the kind of accelerated delivery these fast-track projects demand.
Cold Storage & Food Processing: IMP's Core Market Expands
The cold storage insulated metal panel market was valued at $1.2 billion in 2024 and is projected to reach $2.5 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.5%. E-commerce grocery delivery, pharmaceutical cold chain requirements, and the continued expansion of the U.S. food distribution network are all driving demand for new temperature-controlled facilities.
Insulated metal panels have become the building envelope solution of choice for cold storage construction. According to NAIOP, the installed costs of IMP wall systems can be 25% lower than precast insulated concrete walls or standard tilt-up concrete walls. Paired with their superior thermal performance — R-values as high as 72 in cold storage applications — IMPs deliver both first-cost savings and long-term energy efficiency.
Why IMPs Dominate Cold Storage
All-in-One Performance: An IMP acts as a combined air, water, vapor, and thermal barrier — eliminating the need for multiple trades installing separate performance layers.
Faster Construction: Lightweight, modular panels enable rapid dry-in, allowing interior trades to start sooner and keeping projects on schedule.
Energy Savings: Refrigerated warehouses consume an average of 24.9 kWh per square foot annually. High-performance IMP envelopes significantly reduce refrigeration load and operating costs.
Code Compliance: Over 30 states have adopted the latest energy codes requiring higher insulation standards — driving specification of IMP systems in both new construction and retrofits.
Controlled Environment Agriculture & Cannabis: A Growing Niche
Controlled environment agriculture (CEA) continues to attract significant construction investment as operators scale production of high-value crops including leafy greens, berries, and cannabis. The sector demands building environments that are precision-engineered for temperature, humidity, CO₂, and light control — making insulated metal panels an essential component of every CEA facility.
On the cannabis side, multi-state operators are investing heavily in purpose-built cultivation facilities. Just this month, Nature's Miracle Holding signed a $150 million MOU for a 660,000 SF indoor cannabis cultivation facility in California City — one of the largest indoor cannabis grows in the state. These projects require cGMP-grade cleanroom construction with precise environmental controls, IMP wall and ceiling systems, and specialized HVAC integration.
TCG's Edge in CEA: Terrapin Construction Group has established itself as a go-to partner for CEA and cannabis facility construction, combining nationwide IMP installation expertise with deep understanding of the controlled environment requirements that these specialized facilities demand. From Galvalume and stainless steel IMP systems to fertigation rooms and cleanroom-grade finishes, TCG delivers the precision and thermal continuity that indoor cultivation operations require.
The Labor Crisis & Material Cost Pressures
The construction industry needs an estimated 500,000 additional workers in 2026 just to keep pace with demand, according to Associated Builders and Contractors. Roughly 94% of contractors report difficulty filling open positions. Retirements are compounding the problem: by 2031, 41% of construction workers are expected to leave the workforce, while only 10% of current workers are under 25.
Tariff uncertainty and immigration policy changes are adding further pressure. JLL's 2026 U.S. Construction Perspective warns that aggressive immigration enforcement has created immediate disruptions in major markets that will have lasting negative effects on industry capacity. Material costs continue to trend upward, with tariff-related increases expected to accelerate as existing inventories deplete.
How Specialized IMP Contractors Mitigate These Risks
✓ Trained, dedicated crews that don't compete with general trades for labor
✓ Established manufacturer relationships that secure competitive pricing and reliable lead times
✓ Single-source installation that reduces coordination complexity and schedule risk
✓ Prefabricated panel systems that minimize on-site labor hours per square foot
Technology Adoption Accelerates
The AI construction market is projected to surpass $4.5 billion by 2026, as contractors embrace smart scheduling, predictive maintenance, BIM modeling, and drone-based site monitoring. Projects using Building Information Modeling (BIM) finish an average of 20% faster and 15% cheaper, and adoption now exceeds 60% nationwide.
Prefabrication and modular construction methods are also gaining traction as a direct response to the labor shortage. In the IMP space, the inherent modularity of insulated panel systems makes them ideally suited to the industry's shift toward productionized, factory-controlled building components that reduce field labor requirements and improve quality consistency.
2026 Outlook: Where the Opportunities Are
Deloitte's 2026 Engineering & Construction Industry Outlook identifies four key trends: evolving tariff impacts, the growing focus on data centers and energy infrastructure, workforce transformation, and strategic M&A activity. For contractors, the message is clear:
Firms that treat procurement, workforce planning, and financing as interconnected systems will outperform those relying on traditional playbooks. The 2026 construction market rewards specialization, speed, and supply chain control — precisely the capabilities that define high-performance IMP installation contractors.
Partner with the Nationwide IMP Installation Experts
Terrapin Construction Group provides a single-source, turnkey IMP solution for cold storage, data centers, CEA facilities, cleanrooms, and industrial applications. With over 1,000,000 SF of installs across 38 states in the past 10 years, TCG delivers the precision, speed, and supply chain control that today's most demanding projects require.
Nationwide Expertise | Specialized Crews | Procurement Advantage | Integrated Delivery
Contact:
William C. Goodin PMP, LEED AP
Director of Development, Terrapin Construction Group
(720) 341-7329 | will@terrapincg.com
Terrapincg.com | IMPInstall.com
