Another month of construction planning growth indicates a wave of projects is breaking loose, according to Dodge Construction Network.
The Dodge Momentum Index, which tracks nonresidential projects entering the planning stage and leads actual construction spending by a full year, soared 20.8% in July. Commercial and institutional planning spiked 14.2% and 35.1%, respectively, during the month. The rise follows a 6.8% gain in June.
“Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research and development labs, hospitals and service stations,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “After months of wait-and-see due to tariff uncertainty, owners and developers have begun to move forward with projects and assumed higher costs for them.”
Tariffs on materials such as steel and aluminum have added pressure to construction budgets, causing delays or outright cancellations on a number of jobsites. Though some developers are still moving forward, Martin cautions others will remain hesitant. That dynamic will likely keep planning activity uneven in the months ahead, she said.
“Combined with more organic momentum in planning for hotels, warehouses and recreational projects, cumulative activity drove record highs in the DMI,” said Martin. “As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated”
Momentum expanded across all commercial subsectors, with notable strength in data center and warehouse planning. Massachusetts’ DOT also contributed more than $700 million in planning for the construction of several service plaza projects across the state.
Institutional activity accounted for the bulk of July’s gains. Education, healthcare and public projects all posted substantial increases in planning, according to Dodge. For example, the Hospital Corp. of America submitted plans for several new facilities in July, helping push institutional growth to an 85% year-over-year increase.
Overall, the DMI jumped 41% compared to July 2024. Commercial planning rose 24% over that period, and institutional planning nearly doubled.
Even excluding data center projects from 2023 through 2025, commercial planning would still be up 26% from a year ago, fueled in part by warehouse development, according to Dodge.
A total of 47 projects valued at $100 million or more entered planning in July, according to Dodge. Major commercial projects included:
- The $500 million Fairview Connections data center in New Cumberland, Pennsylvania.
- The $500 million Jabil artificial intelligence data center in Salisbury, North Carolina.
- The $460 million Peabody Union hotel in Nashville, Tennessee.
The largest institutional projects to enter planning included:
- The $459 million ASM campus research and development lab and office in Scottsdale, Arizona.
- The $398 million research and development lab in San Diego.
- The $380 million PPV unaccompanied housing and Navy dormitory in Norfolk, Virginia.
