Nonresidential construction planning lost some momentum in February after several months of stronger growth, according to Dodge Construction Network.
The Dodge Momentum Index, a benchmark that tracks nonresidential construction planning, ticked up 0.7% in February. Unlike previous months, institutional planning, such as hospitals and education, slowed overall growth, falling 4.6% in February. Commercial planning, on the other hand, led by data centers, offset that decline with a 3.3% increase, according to the report.
“Planning momentum moderated in February after a few months of stronger growth,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Increased uncertainty around material prices and fiscal policies may begin to weigh on planning decisions, but for the time being, planning activity is largely continuing to move forward.”
Data centers propped up overall activity, said Martin. Without those projects, the DMI would have declined 2% in February, according to Dodge.
However, despite the slower pace of planning activity in sectors outside data centers, the index still sits higher on a yearly basis. The index jumped 27% compared to February 2024, with commercial planning surging 43% over that period and institutional planning rising 2%.
Much of that yearly growth is again due to the data center boom. Without the segment, commercial planning would have increased 12% over the past year — or less than half its current growth — while the overall DMI would have jumped just 8%, according to Dodge.
A total of 26 projects valued at $100 million or more entered planning in February, seven fewer than the previous month. Major commercial projects included:
- The $500 million Tract data center in Chester, Virginia.
- The SAT93 and SAT94 Microsoft data center projects in San Antonio, Texas, each valued at $350 million.
The largest institutional projects to enter planning included:
- The $329 million Burlington High School in Burlington, Massachusetts.
- The $300 million T-Mobile Arena renovation in Las Vegas.
- The $300 million North Dakota State Hospital in Jamestown, North Dakota.
