A new wave of billion-dollar megaprojects—especially massive data centers and next-generation manufacturing plants—sent U.S. construction starts sharply higher in October, according to the latest Dodge Construction Network report. Ten projects valued at over $1 billion moved into construction during the month, helping propel starts to a seasonally adjusted annual rate of $1.53 trillion, a 21.1% month-over-month jump.
The report shows the U.S. is deep in a cycle driven by enormous high-tech and industrial investments, mirroring momentum seen in late summer when similar large-scale projects boosted activity in August and September. But that strength is far from evenly distributed across the broader sector.
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“Much of the momentum we’re seeing is still concentrated in big-ticket, high-tech projects,” said Sarah Martin, Dodge’s associate director of forecasting. “Outside those categories, the pace of expansion is noticeably steadier and more restrained.”
Nonresidential starts grew 17.9% in October, fueled by a massive jump in office and data center construction—up 45.5%—and a striking 107.2% rise in manufacturing groundbreakings.
Commercial sectors, including retail, climbed 15.1%, reflecting continued investment in mixed-use hubs and renovated shopping centers. However, hospitality and warehouse projects slipped, showing softer demand in those categories.
Year-to-date, nonresidential starts are up 5.6% overall. Commercial projects have climbed a strong 13.6%, while institutional construction—including hospitals and schools—has fallen 2.2%, revealing lingering constraints for public-sector budgets and funding cycles.
Dodge highlighted several headline-making projects that helped drive the month’s gains:
These projects illustrate how federal incentives, energy infrastructure investments, and hyperscale computing demands continue to shape the construction landscape.
Infrastructure-related projects saw an impressive 59.4% increase in October. The standout: utility projects, which surged 384.5%, reflecting major activity in grid expansion, renewable energy, and power distribution.
Highways and bridges fell 23.7%, showing irregular monthly patterns common in transportation funding cycles.
Over the past 12 months, the number of infrastructure and utility projects has grown 22.9%, indicating strong long-term demand.
While commercial and infrastructure categories surged, residential construction moved in the opposite direction. Overall housing starts fell 15.4% in October:
Across the past 12 months, residential starts declined 3.1%, underscoring the sector’s struggle to regain stable footing.
The latest data reinforces a trend that has defined 2025: U.S. construction starts are being lifted significantly by a small group of extremely large, high-tech, capital-intensive projects.
While those megaprojects are reshaping regional economies—especially in the Gulf Coast, Midwest, and Southeast—the rest of the industry is experiencing slower, steadier expansion.
Martin’s warning that the market is driven disproportionately by high-tech categories suggests the overall sector may face volatility if megaproject momentum cools.
Still, October’s numbers show continued strength in U.S. industrial and infrastructure investment—characteristics that are likely to shape the national construction outlook well into 2026.
Originally reported by Sebastian Shehadi in Global Construction Review.
