Des Moines Construction Boom Driven by Data Centers, High-Rise Housing, and Downtown Redevelopment
According to Engineering News-Record, the Greater Des Moines market is experiencing strong construction growth across multiple sectors, with data centers, downtown housing, and large-scale mixed-use redevelopment leading the way.
Market Impact
Several major projects are now in the pipeline. The Market District, a $600-million mixed-use development on a former industrial site east of the Des Moines River, is planned to include a hotel, housing, retail, and commercial buildings. Downtown, the 515 Walnut Tower is taking shape as a 33-story, 390-unit residential high-rise with an estimated cost of $148 million. The project is described as the tallest multifamily residential tower between Chicago and Denver.
A proposed $95-million, 6,000-seat multi-use soccer stadium anchors the Pro Iowa initiative, a project designed to bring professional soccer to a former Superfund site just south of downtown. That stadium would serve as the centerpiece of a wider $500-million-plus mixed-use development. Agriculture company Corteva also announced plans in May to locate the global headquarters of Vylor, its future independent seed and genetics company, in Johnston, Iowa, roughly 10 miles northwest of Des Moines.
On the data center side, Craig Erickson, managing director at Shive-Hattery, told ENR that his firm is currently working on data center and power infrastructure projects in the Des Moines area and across the country. “This work includes new construction for AI hyperscalers and additions/upgrades to existing co-location and Edge Computing data centers,” Erickson said.
L. Brandon Hummel, executive vice president for preconstruction at Baker Group, noted that demand is strongest in adaptive reuse, housing, education, manufacturing, and infrastructure.
What It Means for Subcontractors
- Large-scale mixed-use projects like the $600-million Market District and the $500-million-plus Pro Iowa development represent extended multi-trade pipelines, meaning early relationship-building with GCs and developers now could position mechanical, electrical, and civil subs for work stretching across multiple years.
- Data center construction is an active and growing segment in the Des Moines area, including both new AI hyperscaler builds and upgrades to existing co-location facilities. Electrical, mechanical, and low-voltage subcontractors with data center experience should be tracking this market closely.
- Adaptive reuse and downtown office renovation work is gaining traction, supported by public investment. Specialty contractors with experience converting existing structures for multifamily or mixed-use occupancy are well-positioned in this market.
- The 515 Walnut Tower, at $148 million and 390 units, is the kind of dense vertical project that drives concentrated, high-volume subcontract work. Subs not yet active in the Des Moines market should evaluate whether the volume justifies mobilization.
