A cross-laminated timber panel is lifted into place at Microsoft\u2019s Northern Virginia data centre, the first facility to use a CLT sandwich system and a model now being adopted at scale by Amazon and Meta.<\/figcaption><\/figure>\nFor mass timber manufacturers, this creates an unusual window.<\/p>\n
North American CLT and glulam manufacturing capacity has expanded considerably during the past decade, but production remains below installed capacity at many plants. Industry market specialists therefore see considerably more room to accommodate additional commercial demand than currently exists in some parts of the steel supply chain.<\/p>\n
The availability of timber capacity does not necessarily mean that material can simply be ordered at the last minute. Mass timber projects require significantly more structural coordination before manufacturing begins.<\/p>\n
Design is becoming the real lead-time issue<\/strong><\/p>\nFor contractors, manufacturing itself is often not the main constraint.<\/p>\n
A timber structure can move quickly from fabrication to installation once the design is frozen. Skanska has worked on projects where only around three weeks separated contract execution from timber arriving at the construction site.<\/p>\n
More complicated projects can require four or five months of coordination before fabrication starts, particularly where penetrations through CLT panels and glulam members must be aligned with mechanical, electrical, plumbing and fire-protection systems.<\/p>\n
This means timber works best when it is part of the project from the beginning.<\/p>\n
Converting a building originally designed around steel or concrete is possible, but much of the potential economic advantage can disappear. Column grids, spans, structural depths and building services may all need to be reconsidered.<\/p>\n
For data center developers, early material decisions could therefore become increasingly important. A project designed for timber from its initial engineering stages has a much greater chance of capturing savings from lighter foundations, prefabrication and faster erection than one switched to timber after steel procurement problems appear.<\/p>\n
Insurance remains a barrier<\/strong><\/p>\nMass timber still faces disadvantages.<\/p>\n
Builders\u2019 risk insurance can be more expensive than for conventional steel construction, particularly during the construction phase when timber elements may be exposed before fire-protection and building systems are completed.<\/p>\n
Skanska is participating in work with the U.S. Department of Agriculture aimed at identifying measures that could reduce those insurance costs, although results are not expected quickly.<\/p>\n
Developers must also make financial commitments earlier. Timber manufacturers generally require deposits and final design decisions ahead of fabrication, reducing some of the flexibility developers have traditionally had when sourcing steel.<\/p>\n
These constraints mean mass timber is unlikely to replace steel across the data center market.<\/p>\n
But the equation is becoming less one-sided.<\/p>\n
AI construction boom could open a new market for engineered wood<\/strong><\/p>\nThe scale of planned data center construction gives the timber industry a reason to watch the sector closely.<\/p>\n
Artificial intelligence infrastructure has triggered extraordinary investment in computing facilities, electrical systems and related construction. As these projects compete for the same structural materials, labour and manufacturing capacity, developers are becoming more willing to reconsider materials that previously sat outside standard data center design.<\/p>\n
For timber producers, even a relatively small share of the data center market could create a meaningful new source of demand for glulam and CLT.<\/p>\n
The near-term opportunity is less about timber becoming cheaper than steel on a simple per-unit basis and more about the changing cost of time. With steel lead times extending and fabrication capacity heavily utilised, a structural system capable of moving through an available manufacturing network can become economically attractive even when the initial material bill is higher.<\/p>\n
For North American mass timber producers that have spent years adding capacity ahead of demand, the data center construction boom may offer one of the first large-scale markets capable of putting that spare capacity to work.<\/p>\n
Amazon, Meta and Microsoft move mass timber into large-scale projects<\/strong><\/p>\nThe clearest sign of mass timber\u2019s shift into mainstream corporate construction is the growing involvement of Amazon, Meta and Microsoft. All three companies are testing timber in projects where construction speed, structural performance and repeatability matter as much as carbon reduction. The most important change is that these are no longer isolated demonstration buildings: timber is beginning to appear within larger development programmes.<\/p>\n
Meta has introduced mass timber across several data centre campuses in the US. At its Aiken, South Carolina, development, timber is being used in administrative buildings within a much larger data centre complex, while similar concepts are being applied in Cheyenne, Wyoming, and Montgomery, Alabama. The systems include cross-laminated timber, glulam beams and mass plywood panels, allowing much of the structure to be prefabricated before arriving on site. Meta is also examining whether timber can move beyond offices into warehouses and eventually parts of the data halls themselves.<\/p>\n
Microsoft has taken a hybrid approach in Northern Virginia, combining CLT with steel and concrete rather than attempting to replace conventional materials completely. Timber is being used in floor and ceiling systems, with the structural mix designed around the operational requirements of a data centre. Microsoft has reported substantially lower embodied carbon for the hybrid solution compared with more conventional steel- and concrete-heavy designs. The project is important because it shows how timber can be inserted into a highly technical building type without requiring the entire structure to be redesigned around wood.<\/p>\n
Amazon has concentrated more heavily on logistics infrastructure. Its DII5 delivery station in Elkhart, Indiana, became the company\u2019s first large-scale US logistics facility to use mass timber extensively in the structural system. Timber was combined with lower-carbon concrete foundations, creating a building that Amazon has used as a test bed for a range of construction and sustainability measures. The company has indicated that lessons from the project could be applied elsewhere in its property portfolio.<\/p>\n
The three companies are using mass timber in different ways: Meta across data centre campuses, Microsoft in hybrid data centre structures, and Amazon in logistics buildings. In each case, prefabrication is a major part of the appeal. For companies developing large numbers of facilities, the ability to manufacture structural components off-site and assemble them quickly is becoming almost as important as reducing embodied carbon.<\/p>\n
![<\/a>Meta is testing the use of mass timber as part of its effort to lower the environmental impact of data centre construction.<\/figcaption><\/figure>\nIn one office project studied by Skanska, the timber gravity frame initially cost more than the equivalent steel structure. Once changes to foundations, lateral systems, finishes, facade work and construction time were included, the total cost difference narrowed substantially.<\/p>\nThat calculation could become more favourable where steel procurement itself threatens a project schedule.<\/p>\nStable lumber costs strengthen the case<\/strong><\/p>\nThe raw-material picture is also moving in timber\u2019s favour.<\/p>\nDespite higher U.S. duties affecting Canadian softwood lumber, construction lumber prices have been considerably more stable than steel. Current escalation for lumber is estimated at roughly 0\u20133%, helped by weak residential construction demand in the United States.<\/p>\nThat matters because lumber typically represents around two-thirds of the manufacturing cost of mass timber products such as cross-laminated timber and glued-laminated timber.<\/p>\nSteel and timber are therefore moving through very different market cycles. Steel producers and fabricators are dealing with heavy demand from data centers, semiconductor plants and other large infrastructure projects, while the North American lumber industry continues to operate against a relatively weak housing market.<\/p>\n<\/a>A cross-laminated timber panel is lifted into place at Microsoft\u2019s Northern Virginia data centre, the first facility to use a CLT sandwich system and a model now being adopted at scale by Amazon and Meta.<\/figcaption><\/figure>\nFor mass timber manufacturers, this creates an unusual window.<\/p>\nNorth American CLT and glulam manufacturing capacity has expanded considerably during the past decade, but production remains below installed capacity at many plants. Industry market specialists therefore see considerably more room to accommodate additional commercial demand than currently exists in some parts of the steel supply chain.<\/p>\nThe availability of timber capacity does not necessarily mean that material can simply be ordered at the last minute. Mass timber projects require significantly more structural coordination before manufacturing begins.<\/p>\nDesign is becoming the real lead-time issue<\/strong><\/p>\nFor contractors, manufacturing itself is often not the main constraint.<\/p>\nA timber structure can move quickly from fabrication to installation once the design is frozen. Skanska has worked on projects where only around three weeks separated contract execution from timber arriving at the construction site.<\/p>\nMore complicated projects can require four or five months of coordination before fabrication starts, particularly where penetrations through CLT panels and glulam members must be aligned with mechanical, electrical, plumbing and fire-protection systems.<\/p>\nThis means timber works best when it is part of the project from the beginning.<\/p>\nConverting a building originally designed around steel or concrete is possible, but much of the potential economic advantage can disappear. Column grids, spans, structural depths and building services may all need to be reconsidered.<\/p>\nFor data center developers, early material decisions could therefore become increasingly important. A project designed for timber from its initial engineering stages has a much greater chance of capturing savings from lighter foundations, prefabrication and faster erection than one switched to timber after steel procurement problems appear.<\/p>\nInsurance remains a barrier<\/strong><\/p>\nMass timber still faces disadvantages.<\/p>\nBuilders\u2019 risk insurance can be more expensive than for conventional steel construction, particularly during the construction phase when timber elements may be exposed before fire-protection and building systems are completed.<\/p>\nSkanska is participating in work with the U.S. Department of Agriculture aimed at identifying measures that could reduce those insurance costs, although results are not expected quickly.<\/p>\nDevelopers must also make financial commitments earlier. Timber manufacturers generally require deposits and final design decisions ahead of fabrication, reducing some of the flexibility developers have traditionally had when sourcing steel.<\/p>\nThese constraints mean mass timber is unlikely to replace steel across the data center market.<\/p>\nBut the equation is becoming less one-sided.<\/p>\nAI construction boom could open a new market for engineered wood<\/strong><\/p>\nThe scale of planned data center construction gives the timber industry a reason to watch the sector closely.<\/p>\nArtificial intelligence infrastructure has triggered extraordinary investment in computing facilities, electrical systems and related construction. As these projects compete for the same structural materials, labour and manufacturing capacity, developers are becoming more willing to reconsider materials that previously sat outside standard data center design.<\/p>\nFor timber producers, even a relatively small share of the data center market could create a meaningful new source of demand for glulam and CLT.<\/p>\nThe near-term opportunity is less about timber becoming cheaper than steel on a simple per-unit basis and more about the changing cost of time. With steel lead times extending and fabrication capacity heavily utilised, a structural system capable of moving through an available manufacturing network can become economically attractive even when the initial material bill is higher.<\/p>\nFor North American mass timber producers that have spent years adding capacity ahead of demand, the data center construction boom may offer one of the first large-scale markets capable of putting that spare capacity to work.<\/p>\nAmazon, Meta and Microsoft move mass timber into large-scale projects<\/strong><\/p>\nThe clearest sign of mass timber\u2019s shift into mainstream corporate construction is the growing involvement of Amazon, Meta and Microsoft. All three companies are testing timber in projects where construction speed, structural performance and repeatability matter as much as carbon reduction. The most important change is that these are no longer isolated demonstration buildings: timber is beginning to appear within larger development programmes.<\/p>\nMeta has introduced mass timber across several data centre campuses in the US. At its Aiken, South Carolina, development, timber is being used in administrative buildings within a much larger data centre complex, while similar concepts are being applied in Cheyenne, Wyoming, and Montgomery, Alabama. The systems include cross-laminated timber, glulam beams and mass plywood panels, allowing much of the structure to be prefabricated before arriving on site. Meta is also examining whether timber can move beyond offices into warehouses and eventually parts of the data halls themselves.<\/p>\nMicrosoft has taken a hybrid approach in Northern Virginia, combining CLT with steel and concrete rather than attempting to replace conventional materials completely. Timber is being used in floor and ceiling systems, with the structural mix designed around the operational requirements of a data centre. Microsoft has reported substantially lower embodied carbon for the hybrid solution compared with more conventional steel- and concrete-heavy designs. The project is important because it shows how timber can be inserted into a highly technical building type without requiring the entire structure to be redesigned around wood.<\/p>\nAmazon has concentrated more heavily on logistics infrastructure. Its DII5 delivery station in Elkhart, Indiana, became the company\u2019s first large-scale US logistics facility to use mass timber extensively in the structural system. Timber was combined with lower-carbon concrete foundations, creating a building that Amazon has used as a test bed for a range of construction and sustainability measures. The company has indicated that lessons from the project could be applied elsewhere in its property portfolio.<\/p>\nThe three companies are using mass timber in different ways: Meta across data centre campuses, Microsoft in hybrid data centre structures, and Amazon in logistics buildings. In each case, prefabrication is a major part of the appeal. For companies developing large numbers of facilities, the ability to manufacture structural components off-site and assemble them quickly is becoming almost as important as reducing embodied carbon.<\/p>\n](\"https:\/\/www.globalwoodmarketsinfo.com\/wp-content\/uploads\/2026\/04\/mass3.jpg\"){kind=link}
![<\/a>A cross-laminated timber panel is lifted into place at Microsoft\u2019s Northern Virginia data centre, the first facility to use a CLT sandwich system and a model now being adopted at scale by Amazon and Meta.<\/figcaption><\/figure>\nFor mass timber manufacturers, this creates an unusual window.<\/p>\nNorth American CLT and glulam manufacturing capacity has expanded considerably during the past decade, but production remains below installed capacity at many plants. Industry market specialists therefore see considerably more room to accommodate additional commercial demand than currently exists in some parts of the steel supply chain.<\/p>\nThe availability of timber capacity does not necessarily mean that material can simply be ordered at the last minute. Mass timber projects require significantly more structural coordination before manufacturing begins.<\/p>\nDesign is becoming the real lead-time issue<\/strong><\/p>\nFor contractors, manufacturing itself is often not the main constraint.<\/p>\nA timber structure can move quickly from fabrication to installation once the design is frozen. Skanska has worked on projects where only around three weeks separated contract execution from timber arriving at the construction site.<\/p>\nMore complicated projects can require four or five months of coordination before fabrication starts, particularly where penetrations through CLT panels and glulam members must be aligned with mechanical, electrical, plumbing and fire-protection systems.<\/p>\nThis means timber works best when it is part of the project from the beginning.<\/p>\nConverting a building originally designed around steel or concrete is possible, but much of the potential economic advantage can disappear. Column grids, spans, structural depths and building services may all need to be reconsidered.<\/p>\nFor data center developers, early material decisions could therefore become increasingly important. A project designed for timber from its initial engineering stages has a much greater chance of capturing savings from lighter foundations, prefabrication and faster erection than one switched to timber after steel procurement problems appear.<\/p>\nInsurance remains a barrier<\/strong><\/p>\nMass timber still faces disadvantages.<\/p>\nBuilders\u2019 risk insurance can be more expensive than for conventional steel construction, particularly during the construction phase when timber elements may be exposed before fire-protection and building systems are completed.<\/p>\nSkanska is participating in work with the U.S. Department of Agriculture aimed at identifying measures that could reduce those insurance costs, although results are not expected quickly.<\/p>\nDevelopers must also make financial commitments earlier. Timber manufacturers generally require deposits and final design decisions ahead of fabrication, reducing some of the flexibility developers have traditionally had when sourcing steel.<\/p>\nThese constraints mean mass timber is unlikely to replace steel across the data center market.<\/p>\nBut the equation is becoming less one-sided.<\/p>\nAI construction boom could open a new market for engineered wood<\/strong><\/p>\nThe scale of planned data center construction gives the timber industry a reason to watch the sector closely.<\/p>\nArtificial intelligence infrastructure has triggered extraordinary investment in computing facilities, electrical systems and related construction. As these projects compete for the same structural materials, labour and manufacturing capacity, developers are becoming more willing to reconsider materials that previously sat outside standard data center design.<\/p>\nFor timber producers, even a relatively small share of the data center market could create a meaningful new source of demand for glulam and CLT.<\/p>\nThe near-term opportunity is less about timber becoming cheaper than steel on a simple per-unit basis and more about the changing cost of time. With steel lead times extending and fabrication capacity heavily utilised, a structural system capable of moving through an available manufacturing network can become economically attractive even when the initial material bill is higher.<\/p>\nFor North American mass timber producers that have spent years adding capacity ahead of demand, the data center construction boom may offer one of the first large-scale markets capable of putting that spare capacity to work.<\/p>\nAmazon, Meta and Microsoft move mass timber into large-scale projects<\/strong><\/p>\nThe clearest sign of mass timber\u2019s shift into mainstream corporate construction is the growing involvement of Amazon, Meta and Microsoft. All three companies are testing timber in projects where construction speed, structural performance and repeatability matter as much as carbon reduction. The most important change is that these are no longer isolated demonstration buildings: timber is beginning to appear within larger development programmes.<\/p>\nMeta has introduced mass timber across several data centre campuses in the US. At its Aiken, South Carolina, development, timber is being used in administrative buildings within a much larger data centre complex, while similar concepts are being applied in Cheyenne, Wyoming, and Montgomery, Alabama. The systems include cross-laminated timber, glulam beams and mass plywood panels, allowing much of the structure to be prefabricated before arriving on site. Meta is also examining whether timber can move beyond offices into warehouses and eventually parts of the data halls themselves.<\/p>\nMicrosoft has taken a hybrid approach in Northern Virginia, combining CLT with steel and concrete rather than attempting to replace conventional materials completely. Timber is being used in floor and ceiling systems, with the structural mix designed around the operational requirements of a data centre. Microsoft has reported substantially lower embodied carbon for the hybrid solution compared with more conventional steel- and concrete-heavy designs. The project is important because it shows how timber can be inserted into a highly technical building type without requiring the entire structure to be redesigned around wood.<\/p>\nAmazon has concentrated more heavily on logistics infrastructure. Its DII5 delivery station in Elkhart, Indiana, became the company\u2019s first large-scale US logistics facility to use mass timber extensively in the structural system. Timber was combined with lower-carbon concrete foundations, creating a building that Amazon has used as a test bed for a range of construction and sustainability measures. The company has indicated that lessons from the project could be applied elsewhere in its property portfolio.<\/p>\nThe three companies are using mass timber in different ways: Meta across data centre campuses, Microsoft in hybrid data centre structures, and Amazon in logistics buildings. In each case, prefabrication is a major part of the appeal. For companies developing large numbers of facilities, the ability to manufacture structural components off-site and assemble them quickly is becoming almost as important as reducing embodied carbon.<\/p>\n](\"https:\/\/www.globalwoodmarketsinfo.com\/wp-content\/uploads\/2026\/04\/mass2.jpg\"){kind=link}