Utility Dive•about 2 months ago
Iran war impacts on oil prices spiked construction stress, increased abandonments
Key Takeaway
Developers and large power consumers face heightened construction cost risks and project abandonment rates due to market stress, though the data center sector remains a strong growth area.
AI Summary
- •Geopolitical events (Iran war) are driving oil price spikes, contributing to increased construction stress and costs.
- •Construction project abandonments surged by 22.8% month-over-month in March, indicating significant industry risk and project viability challenges.
- •While general commercial construction is weakening, the data center sector continues to experience a robust boom, presenting a resilient market for power development.
Topics
datacenterfinancing
Article Content
Construction saw a 22.8% surge in project abandonments month over month in March, according to ConstructConnect. Other analyses have found commercial construction weakening outside the data center boom.