Germany’s construction industry is showing early signs of recovery as the country’s €500 billion infrastructure investment plan begins to gain momentum. Heidelberg Materials CEO Dominik von Achten has reported initial improvements in construction activity during the July–September 2026 quarter.
The infrastructure plan is expected to support projects across transport, energy and other essential infrastructure sectors. According to the company, several projects are ready for implementation and could help increase demand for construction materials.
Investment in energy infrastructure and data centres is also gaining traction. The growing use of artificial intelligence (AI) is increasing demand for data centres, creating opportunities for construction companies and building material suppliers.
Heidelberg Materials is exploring opportunities to supply lower-carbon construction materials to major technology companies operating large data centre networks. This reflects the growing focus on reducing the environmental impact of digital infrastructure, including its energy consumption, water use and carbon emissions.
However, the recovery still faces challenges. Rising energy costs continue to affect cement manufacturing, which requires significant energy. The company has indicated that higher costs can largely be passed on to customers, while cost-cutting measures remain part of its business strategy.
The early signs of improvement offer some optimism for Germany’s construction sector after a difficult period. However, sustained growth will depend on how quickly planned infrastructure projects move into execution and how costs develop.
The coming months will be important in determining whether increased public investment translates into a lasting recovery for the construction industry.
