The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 20.8 percent in July to 280.4 from the upwardly revised June reading of 232.1.
Over the month, commercial planning grew 14.2 percent while institutional planning expanded 35.1 percent. Year-to-date, the momentum index is up 27 percent from the average reading over the same period in 2024.
The momentum index is a monthly measure of the value of nonresidential building projects entering the planning stage, which has been shown to lead construction spending for nonresidential buildings by a full year.
“Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research and development labs, hospitals and service stations,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Combined with more organic momentum in planning for hotels, warehouses and recreational projects, cumulative activity drove record highs in the DMI. After months of wait-and-see due to tariff uncertainty, owners and developers have begun to move forward with projects and assumed higher costs for them. As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated.”
On the commercial side, all sectors gained momentum over the month, according to Dodge, notably led by strength in data centers and warehouses. MassDOT (Massachusetts Department of Transportation) also entered over $700 million in planning towards the construction of several service plaza projects throughout the state.
Most of this month’s growth took place on the institutional side, with education, healthcare and public projects seeing substantial growth in planning activity, Dodge says. For example, the Hospital Corporation of America announced several hospital projects in July, driving very strong growth over a single month.
In July, the momentum index increased by 41 percent compared to the same period last year. The commercial segment increased by 24 percent compared to July 2024, and the institutional segment rose by 85 percent over the same period. If all data center projects between 2023 and 2025 are excluded, commercial planning would be up 26 percent from year-ago levels, driven by an uptick in warehouse planning.
Specific projects
A total of 47 projects valued at $100 million or more entered planning throughout July.
The largest commercial projects included the $500 million Fairview Connections Data Center in New Cumberland, Pennsylvania, the $500 million Jabil AI Data Center in Salisbury, North Carolina, and the $460 million Peabody Union Hotel in Nashville, Tennessee.
The largest institutional projects to enter planning were the $459 million ASM Campus research and development lab and office in Scottsdale, Arizona, the $398 million research and development lab in San Diego and the $380 million PPV Unaccompanied Housing/Navy Dormitory project in Norfolk, Virginia.