Data Center Construction Drives Strong Demand for Excavators and Earthmoving Equipment

2026-08-25

The rapid expansion of data center infrastructure in North America is creating a new source of demand for construction equipment, with excavators, bulldozers and other earthmoving machines playing an increasingly important role in large-scale site development.

John Deere reported strong results from its Construction & Forestry business for the third quarter of fiscal 2026. Sales in the segment reached approximately $3.62 billion, an 18% increase from the same period last year. The company said higher shipment volumes and favorable pricing contributed to the growth, while demand from large infrastructure, data center and energy-related projects continued to support the construction equipment market.

According to Deere's latest outlook, construction equipment demand in the United States and Canada is expected to increase by 5% to 10% in 2026. The company's order books for the year are largely full, with customer backlogs extending into fiscal 2027. This gives manufacturers and dealers greater visibility as contractors continue to invest in earthmoving equipment for major infrastructure projects.

Data Centers Create More Demand for Earthmoving Equipment

Building a large data center involves much more than installing servers and electrical systems. Before a facility can become operational, contractors need to prepare large sites, move substantial volumes of soil, construct foundations, install utilities and develop access roads.

This early stage of construction requires a wide range of heavy equipment, including excavators, bulldozers, wheel loaders, dump trucks and grading machines.

For excavator manufacturers and suppliers, the trend is particularly significant. Hydraulic excavators are commonly used for excavation, trenching, foundation work and utility installation, making them essential machines throughout the site preparation process.

Deere executives have pointed to large infrastructure projects, data center construction, pipeline activity and continued rental fleet investment as key factors supporting current demand for construction equipment. The company has also increased production rates at its construction equipment factories as order activity remains strong.

Construction Equipment Demand Extends Beyond Data Centers

The current increase in demand is not limited to data centers. Infrastructure investment, energy projects, manufacturing facilities and other large construction developments are also contributing to higher equipment utilization.

This broader market environment is important for the construction equipment industry because large projects often require fleets rather than individual machines. A single site may need several excavators of different operating weights, along with loaders, dozers, compact equipment and material-handling machines.

Rental companies are also responding to the higher level of activity. Deere said strong demand is supporting continued investment in rental fleets, while dealers are preparing for measured fleet expansion heading into 2027.

Technology Becomes More Important on the Jobsite

Alongside stronger demand for traditional heavy equipment, construction companies are placing greater emphasis on machine technology and productivity.

John Deere reported that factory-installed SmartGrade adoption increased by more than 50% year to date. Grade control, telematics and connected-machine technologies can help contractors improve grading accuracy, reduce rework and monitor equipment performance across increasingly complex jobsites.

For excavator operators and fleet managers, this shift means that equipment selection is increasingly based not only on digging force, operating weight or fuel efficiency, but also on uptime, machine monitoring, jobsite productivity and the ability to integrate equipment data into daily operations.

What This Means for the Excavator Market

John Deere's latest results provide another indication that the North American construction equipment market is being supported by a new cycle of large-scale infrastructure investment.

As data center construction and other infrastructure projects continue to expand, demand for excavators and other earthmoving equipment is likely to remain an important part of the construction machinery market. For equipment manufacturers, dealers, rental companies and contractors, the focus is increasingly shifting toward reliable machines, efficient fleet management and technology that can improve productivity on demanding jobsites.

The combination of infrastructure spending, data center development and stronger equipment utilization could provide a solid foundation for continued growth in the excavator and earthmoving equipment market through 2026 and into 2027.