A surge in large-scale projects has pushed U.S. construction planning to record highs, with data centers and warehouses leading the charge, according to Dodge Construction Network.

The Dodge Momentum Index (DMI), which tracks nonresidential projects entering the planning stage and is considered a leading indicator for actual construction spending by up to a year, jumped 20.8% in July. This follows a 6.8% gain in June, signaling sustained momentum in the pipeline.

Commercial planning grew by 14.2%, while institutional planning soared 35.1%. Sarah Martin, associate director of forecasting at Dodge, attributed the spike to a flood of high-value projects.

“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,” Martin said. “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.”

Tariff Challenges and Developer Response

The construction sector continues to grapple with tariffs on materials such as steel and aluminum, which have inflated budgets and delayed or even canceled some projects. However, Martin noted that while some developers remain cautious, others have accepted the cost increases as a necessary step to advance their plans.

“Combined with more organic momentum in planning for hotels, warehouses and recreational projects, cumulative activity drove record highs in the DMI,” Martin added. “As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated.”

Key Sectors Driving Growth

Momentum grew across every commercial subsector, with data centers and warehouses showing exceptional strength. The Massachusetts Department of Transportation added over $700 million in planned service plaza projects, bolstering the month’s totals.

Institutional projects—especially in education, healthcare, and public infrastructure—accounted for the bulk of the July surge. Hospital Corp. of America’s submission of plans for multiple facilities pushed institutional planning up 85% year-over-year.

Major Projects Entering Planning in July

Commercial:

• $500M Fairview Connections Data Center – New Cumberland, PA
• $500M Jabil AI Data Center – Salisbury, NC
• $460M Peabody Union Hotel – Nashville, TN

Institutional:

• $459M ASM Campus R&D Lab & Office – Scottsdale, AZ
• $398M R&D Lab – San Diego, CA
• $380M PPV Navy Dormitory – Norfolk, VA

In total, 47 projects valued at $100 million or more entered the planning phase last month.

Year-over-Year Surge

Compared to July 2024, the DMI is up 41%. Commercial planning increased 24%, while institutional planning nearly doubled. Even excluding the data center boom of recent years, commercial planning is still up 26%, fueled by warehouse development and logistics-related facilities.

Why It Matters

This surge signals that despite macroeconomic headwinds and material cost inflation, demand for infrastructure—particularly in the data-driven economy—is accelerating. The influx of large-scale projects could translate into robust construction activity throughout 2026 and beyond.

With billions of dollars in planning commitments, the next 12 months could see a ripple effect across construction jobs, supply chains, and regional economic growth—though tariff uncertainties and fiscal policy shifts may still inject volatility into the outlook.

Originally reported by Sebastian Obando in Construction Dive.