Data centers drive rebound in July construction planning momentum
The Dodge Momentum Index showed that construction planning momentum increased 6.9% month-over-month in July, with data center projects standing out and offsetting slowdowns in other commercial categories. Institutional planning surged 13.1% month-over-month, with significant contributions from education and public buildings. Year-over-year, the overall index rose 11.7%, but excluding data centers, commercial planning fell 16.2% year-over-year.
After a brief slowdown in early summer, data center projects once again became the brightest sector in building planning. According to the Dodge Momentum Index (DMI) released on August 6, construction planning momentum rebounded in July.
The DMI is a measure of nonresidential projects entering the planning stage. In July, the index rose 6.9% month-over-month, reversing the decline in June caused by the slowdown in data center projects.
"Broad growth in data centers and major institutional sectors supported stronger planning activity in July," said Sarah Martin, economic research director at Dodge, in the report. "Sustained planning activity should boost construction projects in late 2027, but actual growth will be more limited as inflation expectations are factored into project costs."
Commercial planning (which includes data centers) expanded 4.1% month-over-month in July. However, the report noted that other planning categories within the commercial sector, such as office buildings, warehouses, retail, and hotels, all saw slower growth in July.
Institutional planning showed a different trend, jumping 13.1% month-over-month. Planning for education, healthcare, entertainment, religious, and public buildings all accelerated in July, with most of the monthly increase attributed to education and public building projects.
Compared to July 2025, the DMI rose 11.7% year-over-year, with commercial planning up 13.8% and institutional planning up 7.6%.
However, Dodge noted that given the surge in data center activity last year, excluding data centers, commercial planning would be down 16.2% from 2025 levels.
Largest commercial projects entering planning in July
- A $500 million data center campus in Petersburg, Virginia.
- A $500 million DFW20C data center in Fairfield, Texas.
- A $500 million Google data center (Project Avalon, Building 2) in Buffalo, West Virginia.
Largest institutional projects entering planning in July
- A $351 million Northwestern Memorial Hospital cancer center in Chicago.
- A $300 million BeOne Medicines R&D facility expansion in Pennington, New Jersey.
- A $300 million Houston Livestock Show and Rodeo agricultural complex in Houston.