Public and Private Investments in Wisconsin Shine in 2026 Construction Outlook

By Robb Kahl, Executive Director of Construction Business Group

Wisconsin’s commercial construction industry helps shape the state’s public works, commercial real estate, residential development, telecommunication advancements, and energy production.  However, new construction demand is not limited to these traditional market segments. In Wisconsin — as elsewhere — data centers have emerged as a major growth engine. A large $3.3 billion data-center campus broke ground near Mount Pleasant in 2024, employing thousands of Wisconsin union construction trade workers daily. Additional data-center projects are underway or planned elsewhere in the state, including Port Washington, Beaver Dam, DeForest, and Janesville.  These projects also bring demand for supporting infrastructure like energy, water and sewer, fiber-optic networks, and transportation. That diversification should help cushion against slowdowns in any single market segment in 2026.

While data centers are driving growth, challenges in other segments of the construction industry continue to persist. Nationwide, nonresidential construction spending is softening in many categories outside data centers and infrastructure-focused work. In the Midwest, nonresidential construction is projected to continue to shrink in 2026 — highlighting potential downward pressure for traditional commercial construction. Meanwhile, a challenging interest rate environment, inflation, and uncertainty around tariff and clean energy policies continue to discourage some large private-sector investments.

These factors likely will lead to continued strong reliance on road, sewer, water, and other infrastructure, energy production, and data center construction while we will see ongoing pressure in traditional commercial and residential segments. Because much of 2026 construction growth depends on infrastructure, utilities, and tech-driven projects, investors, developers, and policy makers are likely to gravitate toward projects and legislation related to data centers, broadband/fiber optic, renewable-energy infrastructure, and critical utilities — rather than retail or traditional commercial development like office space.

State policymakers could help improve Wisconsin’s economic and construction outcomes through several strategic actions.  First, we must sustain and prioritize infrastructure investment through adequate funding for roads, bridges, water and sewer upgrades, and broadband networks. This continued investment will support construction jobs and improve long-term economic development.  We also need to streamline permitting and regulatory approvals for infrastructure and utility projects, reducing bureaucratic delays that raise costs and hinder progress.  We should continue to support and incentivize clean energy projects, including offering tax incentives or grant programs for renewable energy, energy storage, and utility-scale projects where Wisconsin construction workers are utilized.  We should also encourage data-center expansion while addressing the concerns about water and energy demands these projects present.  Finally, Wisconsin must support the building trades in their efforts to expand and diversify apprenticeship training programs, including programs aimed at high school students, veterans, and other underemployed and unemployed adults.

Wisconsin enters 2026 with a foundation of strength: low unemployment, stable wage growth, a diversified economy, and a construction sector anchored by infrastructure, utilities, and growing demand for data centers. For the state to fully capitalize on its potential, policymakers should lean into long-term infrastructure investment, clean energy transition, data center development, and construction workforce expansion.  Construction Business Group is prepared to work with our industry partners and elected officials in 2026 to enhance the impact that the construction industry has on the state, private industry, and individuals.

Kahl is executive director of Construction Business Group.

The Construction Business Group works to promote and protect the construction industry by ensuring fair contracting laws are followed on public construction projects. CBG works cooperatively with contractors, employees, and public entities by educating them on fair contracting laws; monitors projects for fair contracting compliance; and aids to resolve compliance issues.