In 2026, the construction industry has shifted its focus to data centers and the infrastructure needed to support them. Meanwhile, sustainable building materials like mass timber continue to remain a hot topic. The question is: how do we handle the pressure to build sustainably while also constructing some of the most energy-intensive projects in history?

The Use of Mass Timber

The built environment drives nearly 40% of all energy-related CO2 emissions, pushing owners to prioritize sustainability due to tighter regulations, lender requirements, and long-term value.

Mass timber is a category of engineered wood products, cross-laminated timber (CLT) being the most common, that is strong enough to replace concrete and steel on construction projects but carries a significantly lower carbon footprint. Over the past few years, CLT has transitioned from a specialized material to the mainstream. In areas like Colorado, clients select it not only for sustainability but also for its natural, rustic aesthetic.

The market reflects this demand: CLT revenue is expected to grow by $350M in 2026–an almost 19% increase from 2025–and is projected to reach $4.4B by 2030.

The Data Center Boom

According to AGC, 65% of contractors expect data center spending to increase this year with five companies alone–Amazon, Alphabet, Microsoft, Meta, and Oracle–announcing plans for $700B in capital expenditures this year, primarily focused on AI-related efforts.

Despite their popularity, constructing these facilities doesn’t come without hurdles. Power constraints are the largest barrier to getting these projects up and running–nearly half of planned data centers in the U.S. are expected to be delayed or cancelled this year, with transformer and switchgear shortages as the primary cause.

Still, total data center construction revenue topped $77B in 2025 and is expected to trend upward in 2026 and beyond, with 70+ projects worth over $88B breaking ground between February and July 2026.

Are They Compatible?

These trends may seem at odds, but is it possible for them to not only coexist but also enhance one another?

Microsoft is currently building two data centers using mass timber as a main structural component, slashing their use of concrete and steel. As a result, they anticipate a 65% reduction in embodied carbon compared to traditional precast concrete structures, and a 35% reduction compared to typical steel framing. This is a strong example of these trends converging on a single project, showing that industry leaders are prioritizing sustainability, even on more energy-intensive work.

One thing seems clear: investment in data centers isn’t diminishing the pressure to build green. If anything, it raises the stakes for getting sustainability right on these projects.

What It Means for You

Amazon, Microsoft, Google, and Meta all have committed to becoming “water positive” by 2030, promising to produce more clean water than they consume. Already, Gensler and Thornton Tomasetti have designed the mass timber data centers for Microsoft described above, while Meta is actively piloting the use of mass timber at data center campuses in South Carolina, Wyoming, and Alabama in collaboration with Fortis Construction and DPR.

Owner expectations are changing rapidly. If your firm wants to remain competitive, it must be able to demonstrate that it can deliver sustainability and performance simultaneously.

• For BD and marketing professionals, winning this type of work depends on your ability to paint a clear and digestible picture of the benefits your firm will provide. Here are some strategies to consider to help differentiate your next submittalBuild a Dedicated Narrative: a sustainability write-up that is specific to data center pursuits will win you more points than generic boilerplate content.

• Highlight Cross-Sector Experience: Showcase your team’s mass timber/CLT experience, even on non-data center projects. If you lack direct experience, demonstrate your awareness of the trend and describe your execution plan.

• Quantify Past Metrics: Share sustainability stats from past projects, including water and energy savings as well as carbon reduction.

• Target the Right Developers: If you have mass timber experience and are looking to break into the data center market, do your research and target developers with aggressive environmental commitments.

The trends transforming our market show no signs of slowing down–neither do the owners driving them. The question isn’t if your firm needs to evolve to enter these markets, it’s whether you can tell the story the client is looking to hear before someone else does.