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Construction starts rebounded in March on the backs of three power and utilities megaprojects as the dominant data center sector took a breather.
Total starts grew 12.8% higher month over month in March to reach a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network.
That jump was largely attributed to a 353.6% month-over-month pop in the electric power and utilities segment, which drove overall nonbuilding construction starts 37.9% higher in March and continued what Dodge called a “flip-flopping streak.”
“A few strong categories overcame slight weakness in all the others in March,” said Eric Gaus, chief economist of Dodge Construction Network. The monthly uptick was a near-mirror reversal of the 13.2% monthly plunge seen in February.
As was the case at the beginning of 2026, a few large nonbuilding starts, which includes power and infrastructure projects, helped buoy the overall numbers. However, highway and bridge kickoffs fell 13.6% month over month, while environmental public works fell 4.1% for the same period, reversing February’s gains.
Courtesy of Dodge Construction Network
For the 12 months ending March 2026, total nonbuilding starts were up 15.8%, according to Dodge. Environmental public works fell by 6.4% during the same period, and highway and bridge groundbreakings were down 1%. On trend, however, utility and gas starts rose 52.3% year over year.
In the nonresidential category, starts improved 6.3% month over month in March, driven by a 251.9% surge in manufacturing starts after a weak February. Hotels and stores were also up month over month 19.3% and 5.6% respectively. The institutional category overall was down 1.5% for March, even as healthcare continued its positive momentum with a 9.7% month-over-month gain and education starts grew 3.4%
That strength belied softer numbers in the commercial sector, which sank 9.2% month over month, driven by a 16% drop in office and data center kickoffs. That pullback followed a 159.6% surge in February.
Courtesy of Dodge Construction Network
Over the last 12 months, total nonresidential starts rose 6.5% compared to March 2025. Commercial starts were up 19.2%, manufacturing gained 20.2% and institutional starts decreased 5.7% over the same period.
“The commercial segment shows the most strength with 12 month growth for all sub-categories except warehousing,” said Gaus.
Residential starts grew 2.6% in March month over month, driven by a 15.3% expansion in multifamily kickoffs. Single family starts, on the other hand, decreased 5.3%. On a 12-month basis, residential starts were down 5.3%, due to a 15.7% decline in single family housing construction. Multifamily starts increased 16.3% during the same period.
Here are the largest projects to break ground in March, according to Dodge:
- The $3.4 billion Shintech Ethylene PEP-2 & Vinyl Chloride Monomer (SPP-4) project in Plaquemine, Louisiana
- The $2.5 billion Darden Clean Energy project in Cantua Creek, California
- The $2.4 billion Savannah River Plutonium Processing Facility project in Aiken, South Carolina
- The $2 billion Phase 1 Natural Gas Plant/Site Infrastructure project in Panhandle, Texas
- The $2 billion CPV Basin Ranch Energy Center in Barstow, Texas
- The $953 million Port Terminal 1 Replacement project in Anchorage, Alaska
- The $727 million Discovery Park Apartments in Irvine, California
- The $577 million Harborside 4 Residential Tower project in Jersey City, New Jersey
- The $420 million 61 Broadway Residential Conversion project in New York City
