Momentum in March construction planning masks widespread tepidness across most of the industry.
The Dodge Momentum Index, a measure which tracks nonresidential construction projects entering the planning stages, rebounded to rise 1.8% month to month in March, according to Dodge Construction Network. The gain marks the first monthly increase of the year, following two consecutive drops to start 2026.
But without data center buildouts, drafting tables would look far less active.
“Planning momentum in March was powered almost entirely by data center projects, with most other sectors easing back,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “For some categories, this reflects a natural reset after the outsized growth in late 2025.”
Commercial planning increased 7% over the month, but activity slowed across nearly every sector outside of data centers. Institutional projects, for example, dropped 8.8%, with only education and public buildings posting small gains.
Since March 2025, commercial planning has climbed 28.5% year over year, according to Dodge. Without the data center boom, however, commercial planning would have dropped 12.7% during that period. Institutional planning increased 19.6% compared to data from a year ago.
The report suggests elevated macroeconomic risks are likely beginning to feed into planning decisions, said Martin. Though artificial intelligence builds seem shielded thus far, the outlook for other traditional construction sectors, such as office and retail projects, looks weaker.
Nevertheless, the index as a whole sits 25.8% higher than March 2025. That signals a still-healthy pipeline of future construction work from plans that have already been drafted.
A total of 54 projects valued at $100 million or more entered planning in March, according to Dodge. Major commercial projects included:
- 17 individual buildings, each valued at $500 million, for the Amazon data center campus in Hamlet, North Carolina, or $8.5 billion combined.
- 10 individual buildings, each valued at $250 million, in relation to the Microsoft data center DSM50 in Dallas, Iowa, for a $2.5 billion total.
The largest institutional projects to enter planning included:
- The $245 million MCLJ Outpatient Pavilion in San Diego.
- The $183 million Orlando Health Viera phase 1B in Viera West, Florida.
- The $175 million Bachelor Enlisted Quarters renovation project at Camp Pendleton North in San Diego.
