Nonresidential construction planning carried its late-2024 momentum into the new year, posting growth across all sectors, according to Dodge Construction Network.
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, jumped 5.6% in January. Institutional planning, such as hospitals and education, led the month’s growth with an 8.7% increase, while commercial planning gained 4.2%, according to the report.
“Nonresidential planning activity saw diversified growth in January, with every vertical experiencing positive momentum,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. Despite that progress, risks still loom, she said. “Uncertainty over fiscal policies, ongoing labor shortages and elevated construction costs will continue to be headwinds to the construction sector.”
Nevertheless, further monetary easing and the sizable number of projects in planning should still support construction spending in the back half of the year, said Martin. On a year over year basis, the index jumped 26% from January 2024, according to Dodge.
Commercial planning surged 37% compared to January 2024, while institutional planning increased 9% during that period. Data centers remain a key driver of that growth, though overall planning activity continues to broaden as well.
Excluding data centers, commercial planning would have jumped 13%, while the overall DMI would have climbed 11%.
A total of 33 projects valued at $100 million or more entered planning in January. Major commercial projects included:
- A $500 million Amazon data center in Jeffersonville, Ohio.
- Phase 1 of the Hunter’s Ridge data center in McLean, Virginia.
The largest institutional projects to enter planning included:
- The $407 million Memorial Hospital expansion in Colorado Springs, Colorado.
- The $300 million AdventHealth Hospital expansion in Parker, Colorado.
