Report: Strong Demand Remains for Infrastructure, Manufacturing, Data Center Construction

While overall cost escalation in Seattle has moderated relative to many U.S. markets, a recent report by Mortenson identifies the latest trends in Puget Sound construction costs.

The Seattle Construction Cost Index highlights that construction starts increased 13% in March, suggesting renewed project momentum entering the second quarter of 2026. Planning activity remains strong across data centers, healthcare, energy and infrastructure sectors. While broader labor and supply-chain conditions have improved considerably in recent years, large-scale infrastructure, energy, and data center projects continue to influence pricing, procurement strategies, and schedule certainty.

Seattle construction employment has largely stabilized after recent workforce fluctuations, while trade-partner pricing and materials costs continue to rise, though at a more moderate pace. Additionally, electrical equipment constraints, power-distribution challenges, tariffs and metal-related pricing pressures remain key concerns for owners and developers.