Plans for data centers, construction’s hottest sector, continued to fly off drafting tables in April, while owners in other market segments mostly sat still, according to Dodge Construction Network.
The Dodge Momentum Index grew 0.9% in April, almost exclusively on the back of data center ramp-ups. Without those projects moving forward, the DMI would have dropped 3%, while commercial planning would have fallen 2.3%. Preparations for institutional projects, which include education, life sciences and healthcare builds, fell 4.2% during the month.
“Despite an uptick in April, the bulk of the DMI’s growth was driven by a surge in data center planning, while momentum in other nonresidential sectors lagged behind,” said Sarah Martin, associate director of forecasting at Boston-based Dodge Construction Network. “Owners and developers are navigating heightened economic and policy uncertainty, which likely bogged down much of this month’s planning activity.”
The index tabulates the dollar value of nonresidential building projects entering the drawing stages each month, an indicator that leads actual construction spending by a full year.
Still, while President Donald Trump’s tariff war with the rest of the world has spooked some construction project sponsors toward the sidelines, the measure of planning activity was up a healthy 22% compared to a year ago. Indeed, commercial segment planning was 20% higher than April 2024 and institutional preparations were 26% higher, compared to a weak showing last year.
But again, data center blueprints are dominating overall activity. Dodge said if it were to remove all data center projects going back to 2023, its yardstick would be up just 7% from a year ago, while commercial jobs would be down 1%.
A total of 40 projects valued at $100 million or more entered planning throughout April, according to Dodge. Some of the largest were:
- The $1.9 billion TA Realty Data Center campus in Dulles, Virginia.
- The $900 million Powhatan Data Center Campus in Powhatan, Virginia
- The $493 million Revere High School in Revere, Massachusetts.
- The $350 million QTS Data Center DFW2-DC3 in Lancaster, Texas.
- The $230 million Kaiser Permanente Sunnyside Medical Center Hospital Tower in Clackamas, Oregon.
- The $203 million Kailua-Kona Hospital in Kaiminani, Hawaii.
