Nonresidential construction planning activity fell in March, reversing recent gains made to start the year, according to Dodge Construction Network.
The Dodge Momentum Index, a benchmark that tracks nonresidential construction planning, tumbled 6.9% in March, as the threat of tariffs and broader uncertainty stymied project projections.
Commercial planning dropped 7.8% due to slower activity in warehouse, data centers and retail projects. Institutional planning, such as education, life sciences and healthcare projects, fell 5%, according to the report.
Hesitancy around how material prices would trend ahead of President Donald Trump’s April 2 tariffs likely contributed to the slowdown in future planning. The Trump administration tariffs have fueled concerns in the construction industry about rising materials costs and potential project cancellations.
“Increased uncertainty around material prices and fiscal policies may have begun to factor into planning decisions throughout March,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “While planning data has weakened across most nonresidential sectors this month, activity remains considerably higher than year-ago levels and still suggests steady construction activity in mid-2026.”
Momentum around data center planning, one of the most significant drivers of growth in recent months, slowed over the month. For example, Microsoft, one of the largest data center builders, recently announced it is slowing or pausing some early-stage data center projects, including a $1 billion build in Ohio, according to The Associated Press.
Trump’s tariffs could also further strain future data center investment if prices continue to rise and supply chain constraints worsen. That could potentially lead to further delays in projects.
But data center planning still sits at historically high levels, according to Dodge. Even with the month’s slowdown, this single building type continues to significantly prop up overall planning figures.
The Dodge Momentum Index jumped 30% year over year, with commercial planning up 32% and institutional planning up 27%, according to the data.
Without data center projects, however, commercial planning would have increased just 4% compared to March 2024, while the overall DMI would have climbed only 12%, according to Dodge.
A total of 25 projects valued at $100 million or more entered planning throughout March. Major commercial projects included:
- The $400 million Logistics Land Investments data center in Bessemer, Alabama.
- The $340 million expansion to the Ontario Convention Center and Hotel in Ontario, California.
- The $300 million Project Cinco data center in Natalia, Texas.
The largest institutional projects to enter planning included:
- The $500 million ambulatory care building at Scripps San Marcos Medical Center in San Marcos, California.
- The $165 million Roanoke High School in Roanoke, Virginia.
- The $135 million Milken Community School expansion in Los Angeles.
