Advanced Technology Market Trends Q2 2026

Advanced Technology remains a key driver of commercial construction activity entering Q2 2026. Demand across Advanced Manufacturing and Mission Critical continues to be strong, but the market has shifted from rapid expansion to disciplined execution. Owners are moving forward with projects that demonstrate cost certainty, schedule reliability, and a clear strategy to manage labor, power, and supply chain constraints.

Early alignment now carries as much weight as capital availability. Design to Build delivery models are increasingly being used to accelerate procurement, reduce downstream risk, and improve predictability. In today’s environment, success is defined less by how fast projects are announced and more by how reliably they are delivered.

Advanced Manufacturing remains a major growth engine, though momentum is moving from rapid expansion to disciplined execution and delivery certainty. Manufacturing investment remains historically strong at approximately $230 billion, even as activity normalizes following the 2022–2024 peak. Decision-making slowed in early Q1 as owners reassessed capital plans, but opportunities are progressing and movement is expected to pick up in Q2.

Federal incentives continue to shape the market. Semiconductors, aerospace, and defense are driving the majority of near-term opportunities, while clean energy funding has become more selective. Emerging interest in nuclear energy solutions is also influencing future planning as part of broader domestic energy and resiliency strategies

Cost and supply pressures remain front and center. Tariffs and ongoing supply chain friction are pushing owners toward earlier procurement, pricing certainty, and proactive risk mitigation. Labor availability remains the single biggest execution risk, while lender caution is shifting some focus toward facility expansions, retrofits, and asset optimization over large greenfield developments.

The North American data center market remains extremely strong, with continued capacity growth and no signs of near-term slowdown. That growth, however, is coming with increased challenges. Power availability, skilled labor constraints, and public pushback are now as critical as cost and schedule considerations.
Speed to market remains the top priority, driving innovation in prefabrication, modular construction, behind the meter power solutions, and adaptability to higher density computing. These dynamics are testing the viability of secondary and tertiary markets that are seeing increased activity but often lack the infrastructure depth of primary markets.

As power capacity is released and vacancy rates remain low, primary markets continue to see strong activity from leading developers, with hyperscalers remaining the target tenants. At the same time, the scale of projects is introducing new risks tied to insurance, financing, labor availability, and long lead equipment procurement, all of which can impact schedules if not addressed early.

Across both Advanced Manufacturing and Mission Critical, familiar pressures continue to shape delivery.

Advanced Manufacturing Owners

• Locking design earlier to enable procurement and reduce schedule risk
• Seeking partners who can deliver speed with predictability
• Streamlining procurement through master service agreements
• Phasing projects into smaller scopes in response to labor constraints

Mission Critical Owners

• Securing power, sites, and long lead equipment earlier
• Evaluating multiple markets and power strategies in parallel
• Leaning into alternative delivery methods to reduce schedule risk
• Partnering with teams that offer proven delivery certainty