Nonresidential construction planning rebounded in December, driven by a sharp uptick in data center and warehouse projects, according to Dodge Construction Network.
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, climbed 10.2% to close 2024. Commercial planning led the charge with a 14.2% increase, while institutional planning posted a more modest 2.5% gain, according to the report.
“Commercial activity rebounded strongly in December, thanks to a reacceleration in data center and warehouse planning activity,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Overall, the strong performance of the Momentum Index this past year is expected to support nonresidential construction spending throughout 2025.”
On a year over year basis, the DMI jumped 19% compared to December 2023. Commercial planning surged 30% during that period, while institutional planning remained largely flat.
Data centers continue to play a pivotal role in that growth, according to Dodge, but the increase also had a broader base. Without data centers’ inclusion, commercial planning still would have grown 8%, while the overall DMI would have increased 5%.
A total of 32 projects valued at $100 million or more entered the planning phase in December. Major commercial projects included:
- Six phases of the $1.6 billion Powerhouse 95 data center in Fredericksburg, Virginia.
- Four phases of the $1 billion Brambleton data center at Tech Park in Ashburn, Virginia.
The largest institutional projects to enter planning included:
- The $226 million OhioHealth Outpatient Cancer Center in Columbus, Ohio.
- The $220 million county jail in Peoria, Illinois.
