Construction planning activity ticked up again in June as demand for warehouses, healthcare facilities and data centers continued to propel growth, according to Dodge Construction Network’s latest report.

The Dodge Momentum Index, a key leading indicator for nonresidential construction, rose 6.8% last month. Commercial planning grew 7.3% while institutional planning climbed 5.7%.

“Nonresidential planning steadily improved in June, alongside strength in warehouse, recreational, and data center planning,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum in other key sectors, like education, hotels, and retail stores, was more subdued.”

Martin attributed the softness in those sectors to persistent caution around the economic outlook. “Weaker consumer spending expectations and uncertainty over project financing have caused developers to tap the brakes on new entries in those categories,” she added.

Despite the mixed results, the index remains well above 2024 levels. Total planning activity was up 20% year over year in June, with institutional planning surging 46% and commercial planning up 11%.

Among the biggest projects to enter planning last month were the $500 million Meadow Brook Technology Park data center campus in Middletown, Virginia; Phase 3 of the $300 million Project Blue data center in Tucson, Arizona; and the $340 million Cleveland Clinic Avon campus expansion in Ohio.

The robust showing for warehouse and data center developments highlights how the surge in e-commerce and artificial intelligence continues to shape construction demand. Major technology campuses and logistics hubs are driving big-ticket projects, even as developers in other areas, like higher education and retail, pause to gauge economic signals.

Martin noted that the momentum suggests contractors should prepare for increased bidding opportunities into 2026. “A total of 40 projects valued at $100 million or more entered planning in June,” she said, underscoring strong near-term potential for firms specializing in tech, logistics and healthcare builds.

While some regions are seeing project delays — such as the recent layoffs at a Massachusetts contractor and Yale’s paused campus work — core sectors remain resilient. Even excluding all data center projects since 2023, Dodge estimates that commercial planning would still be up 12% year over year.

Developers and contractors will likely continue to monitor financing costs, interest rates, and federal funding signals as they weigh new starts in softer segments like retail and higher ed.

Originally reported by Sebastian Obando in Construction Dive.