Nonresidential construction planning activity regained momentum in April as developers and owners continued advancing major commercial and institutional projects despite ongoing economic uncertainty.
.jpg)
The Dodge Momentum Index, a leading indicator of nonresidential construction spending, climbed 6.2% in April to 264.2 following a downwardly revised March reading. The index tracks projects entering the planning phase and is widely viewed as an early measure of future construction activity over the next 12 to 18 months.
Commercial planning activity led the monthly increase with an 8.1% gain, while institutional planning posted a more modest 1.5% improvement.
Data center development remained the dominant force behind market growth, continuing a broader trend that has reshaped the nonresidential construction landscape over the past several years. However, planning activity also stabilized across several traditional commercial sectors, including office buildings, warehouses, hotels and parking structures.
Retail project planning softened during the month, reflecting continued caution among some consumer-facing developers amid elevated financing and operating costs.
Within the institutional market, education and healthcare planning activity accelerated, helping offset slower momentum in public assembly, recreational and religious projects.
Year over year, the Dodge Momentum Index increased 14.1% compared with April 2025. Commercial planning activity rose sharply, supported largely by hyperscale data center development, while institutional planning also recorded substantial annual gains.
Several large-scale projects entered planning during the month, including multiple major data center developments and high-value institutional facilities. The concentration of billion-dollar technology infrastructure investments continues to reinforce demand for specialized construction services tied to mission-critical facilities, power infrastructure and advanced mechanical systems.
Industry analysts continue monitoring broader macroeconomic risks that may influence future project starts, including labor shortages, material pricing volatility and ongoing supply chain pressures. While planning activity improved in April, owners and contractors remain cautious about financing conditions and procurement risks that could affect execution timelines later in the year.
The latest data suggests that nonresidential construction demand remains strongest in sectors tied to digital infrastructure, healthcare modernization and institutional expansion, while more cyclical commercial categories continue to recover unevenly.
The rebound in planning activity provides an early indication that portions of the nonresidential market may be stabilizing after several months of slower momentum. For construction owners and developers, the continued strength of data center, healthcare and education projects suggests these sectors are likely to remain among the most competitive areas for labor, subcontractors and critical materials.
Owners pursuing large commercial or institutional developments may continue facing elevated pricing pressure tied to skilled labor shortages and growing demand for electrical, mechanical and civil infrastructure expertise. Data center expansion in particular is intensifying competition for power equipment, HVAC systems and specialty trades across multiple U.S. regions.
At the same time, stronger planning activity may improve confidence among lenders, investors and public agencies considering future capital projects. Construction owners monitoring market timing may view the latest index gains as a signal that select sectors are entering a more active development cycle heading into 2027.
Originally reported by Dodge Construction Network.
