September’s Biggest Commercial Construction Groundbreakings of 2025

Commercial Construction Surges in September with Major U.S. Projects Breaking Ground

The U.S. construction industry maintained steady momentum in September 2025, marked by a wave of high-value commercial and institutional projects that broke ground nationwide. According to the Dodge Construction Network, total construction starts rose 3.1% in September to a seasonally adjusted annual rate of $1.26 trillion, building on August’s 1.7% growth.

While the industry showed resilience, experts noted that growth remains moderate compared to previous years. “A 3% growth rate is just keeping up with inflation,” said Eric Gaus, chief economist at Dodge Construction Network. “We need fourth quarter growth of 25% to match annual growth of 2024.”

Nonresidential building starts—which include commercial, institutional, and manufacturing projects—were a bright spot, increasing 11.9% last month. The gains were driven by parking and service station projects (up 30.1%) and a 32.6% jump in office construction. Manufacturing activity also rebounded sharply, climbing 45.2% in September following a 24.4% drop in August, according to Dodge.

So far this year, nonresidential groundbreakings have increased 5% year-to-date through September. Commercial starts rose 10.9%, offsetting a 0.8% decline in institutional projects such as education and healthcare. Over the past 12 months, total nonresidential starts improved 6.8%, with commercial and institutional categories posting 22.5% and 5% growth respectively. However, manufacturing fell 23.6% in that same period.

Despite these mixed results, several major projects broke ground in September, underscoring investor confidence and the continued flow of capital into critical infrastructure, technology, and energy sectors.

Top 9 Commercial Construction Starts in September 2025

1. AirTrain Newark Replacement — $3 billion
   • Newark, New Jersey
   • A transformative infrastructure project to replace the existing AirTrain system at Newark Liberty International Airport.
2. Hugh Brinson Pipeline — $2.7 billion
   • Midland, Texas
   • A major energy infrastructure project enhancing oil and gas distribution capacity in the Permian Basin.
3. Hut 8 Data Center — $2.5 billion
   • St. Francisville, Louisiana
   • A large-scale hyperscale data center reflecting continued demand for AI and cloud computing capacity.
4. NYS Life Sciences Public Health Laboratory — $1.7 billion
   • Albany, New York
   • A state-of-the-art laboratory to support medical research and public health infrastructure.
5. Llano Data Center Phase 1 — $1.2 billion
   • Claude, Texas
   • The first phase of a next-generation data campus supporting growing technology and energy needs.
6. Walnut Creek Wastewater Treatment Plant Renovation & Expansion — $1.1 billion
   • Austin, Texas
   • A key sustainability project upgrading Austin’s wastewater management and environmental systems.
7. Harborside 8 Mixed-Use Development — $584 million
   • Jersey City, New Jersey
   • A major mixed-use tower featuring residential, commercial, and parking components along the waterfront.
8. 5 Times Square Residential Conversion — $575 million
   • New York City, New York
   • A conversion project reimagining the iconic Times Square office building into residential space.
9. Imperial Tower — $480 million
   • Jersey City, New Jersey
   • A luxury high-rise adding to Jersey City’s growing skyline and urban residential market.

Sector Trends and Market Outlook

Not all segments performed equally. Nonbuilding construction, which includes highways, bridges, and utilities, fell 6.2% in September due largely to a 62.5% drop in utility construction. However, infrastructure categories such as highway and bridge projects saw a 7.4% increase, helping to offset some losses.

Over the past 12 months, total nonbuilding starts gained 16.7%, supported by strong federal funding for transportation and climate-resilient projects.

Meanwhile, the residential sector continued its steady pace, with total housing starts up 3.6% in September. Both multifamily (+6.4%) and single-family (+1.7%) projects posted gains. However, on a year-over-year basis, total residential starts declined 1.4%, reflecting ongoing affordability and interest rate pressures.

As 2025 enters its final quarter, industry analysts expect continued investment in infrastructure, data centers, and life sciences facilities to sustain momentum. However, rising costs, tight labor markets, and policy uncertainty could temper the pace of future growth.

With large-scale projects breaking ground and demand for advanced facilities growing, the construction sector continues to demonstrate adaptability and strength in the face of shifting economic conditions.

Originally reported by Sebastian Obando in Construction Dive.