Data center hubs and healthcare campuses pushed more projects into the pipeline last month, a sign that construction activity could hit a high point in early 2027, according to Dodge Construction Network.
The Dodge Momentum Index, which tracks nonresidential projects entering the planning stages and leads actual construction spending by a full year, increased 3.4% in September. Commercial and institutional planning climbed 4.7% and 0.9%, respectively, according to Dodge Construction Network.
The index now sits 33% higher than the same period in 2024. Compared to last September, overall planning activity jumped 60%, with commercial planning up 53% and institutional planning up 75%.
“Planning momentum remained steadfast for data centers, healthcare, and public buildings throughout September and will correlate to stronger construction spending in early 2027,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “After a prolonged period of uncertainty, owners and developers are advancing projects into planning, but activity is expected to normalize in future months.”
Growth in the commercial segment leaned heavily on data center projects. Without them, commercial planning would have only ticked up 0.5% for the month. On the institutional side, healthcare and public buildings gained ground, though education and recreation projects softened, according to the report.
A total of 58 projects valued at $100 million or more entered planning in September, according to Dodge. Major commercial projects included:
- The $440 million CyrusOne data center in Yorkville, Illinois.
- The $384 million Meta data center (Phase 2) in Montgomery, Alabama.
- The $300 million Gemini data center in Brandon, South Dakota.
The largest institutional projects to enter planning included:
- The $246 million Philip Anthony Senior High School in Princeton, Texas.
- The $227 million HCA Medical City Healthcare Hospital in Prosper, Texas.
- The $158 million East Stamford Elementary School and Middle School in Stamford, Connecticut.
