Construction planning kickstarted some momentum in April, though a bulk of that jump stemmed from the data center construction boom.
The Dodge Momentum Index, a measure that tracks nonresidential construction projects entering the planning stages, ticked up 6.2% month to month in April, according to Dodge Construction Network. The positive report follows a slow start to the year around construction planning, especially for projects outside the data center construction frenzy.
“After three months of slowing momentum, nonresidential planning began to find its footing in April,” said Sarah Martin, director of economic research at Dodge Construction Network. “Data centers remain the largest driver behind growth in the Dodge Momentum Index, but several other sectors appeared to stabilize over the month.”
Commercial planning climbed 8.1% month over month in April, in addition to a 1.5% uptick in institutional planning. Traditional office buildings, warehouses, hotels and parking garages all posted growth during the month, according to Dodge. Retail construction plans, however, lost steam, according to the report.
Notably, the pipeline for data center construction posted the strongest results once again. Commercial planning increased 37.2% year over year, but without factoring in data center work, that increase was 5.8%.
Jacobs CEO Bob Pragada recently said the data center construction boom is “still in the early stages,” according to remarks during the firm’s fiscal second-quarter earnings call. The company’s data center business increased by more than 100% over the past year, largely due to hyperscaler investments.
However, macroeconomic pressures still cast some skepticism on the overall construction activity outlook, said Martin. Issues including “labor shortages, higher material costs and supply chain disruptions” still weigh on confidence, she said.
Nevertheless, the index sits 14.1% higher than April 2025, according to Dodge. A total of 44 projects valued at $100 million or more entered planning in April, according to Dodge.
Major commercial projects included:
- The $500 million Google data center Building One in Buffalo, West Virginia.
- The $470 million Stargate data center Freebird Phase 2 in Burlington, Texas.
- The $450 million Jay data center in Jay, Maine.
The largest institutional projects to enter planning included:
- The $256 million Navy SEAL Museum in San Diego.
- The $178 million Lurie Children’s Hospital in Downers Grove, Illinois.
- The $175 million unaccompanied housing improvement at Naval Base Coronado in California.
