U.S. construction spending rose 0.8% month-over-month in May, according to the Census Bureau, with non-residential infrastructure spending leading at 1.4% growth. The data supports a constructive outlook for HRC demand as steel-consuming construction activity accelerates.
The AI data center construction boom is a significant driver. Data center steel demand is projected at 4.2 million short tons in 2026, up 35% year-over-year, according to the American Institute of Steel Construction. Each hyperscale data center requires 15,000-25,000 tons of steel for structural framing, cooling systems, and power infrastructure.
CHIPS Act-funded semiconductor fabrication plant construction is adding another demand stream. Five major fab projects are under construction in Arizona, Texas, Ohio, and New York, with combined steel demand estimated at 1.8 million short tons across their construction phases. Leading-edge fabs require specialized structural steel for vibration-controlled environments.
Highway and bridge spending under the Infrastructure Investment and Jobs Act remains elevated, with $48 billion obligated in the first five months of 2026. Structural steel demand from bridge construction is running 12% above 2025 levels, providing further support for the broader steel demand outlook.
The construction-driven demand boom is real and multi-year: AI data centers alone will consume 4.2 million tons of steel in 2026. For HRC procurement, this structural demand growth means any price dips are likely to be shallow and short-lived. The pre-election trade policy environment adds further support. Build your 2027 steel budget assuming $1,000-$1,200 as the normal trading range, not $800-$1,000.