US non-residential construction spending increased 4.2% year-on-year through April, according to US Census Bureau data. The growth is broad-based: manufacturing construction is up 9.6%, commercial construction up 2.8%, and infrastructure spending up 8.1% as IIJA-funded projects continue to break ground.
Data center construction is a notable demand driver. Over 5.5 million square feet of data center space is under construction in Northern Virginia alone, with another 3.2 million square feet in the planning phase. Each data center uses approximately 8,000-12,000 tons of structural steel and rebar equivalents.
The infrastructure pipeline is deep but slow-moving. IIJA-funded state-level projects approved in 2025 are now entering the procurement phase. The American Iron and Steel Institute estimates that IIJA will drive an additional 3.2 million tons of steel demand through 2028.
Residential construction remains weak, with housing starts down 8.7% year-on-year. However, HRC exposure to residential construction is limited — the residential sector accounts for only 12% of total HRC demand, primarily through manufactured housing and light-gauge framing.
Structural demand from data center and infrastructure construction provides a multi-year tailwind for HRC. Buyers should incorporate this demand growth into their 2027 procurement models. The non-residential construction pipeline supports the current price level and justifies premiums for domestic mill capacity.