Project Planning Activity Record High 21%

The Dodge Momentum Index (DMI) jumped 21% in July to 280.4 from a revised June reading of 232.1. Data from the monthly index, released by Dodge Construction Network (DCN), shows that commercial planning grew 14.2% while institutional planning expanded 35.1%. Year-to-date, the DMI was up 27% over the same period in 2024.

The DMI is a monthly measure of the value of nonresidential building projects entering the planning stage. It leads construction spending for nonresidential buildings by a full year.

“Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research and development labs, hospitals and service stations,” says Sarah Martin, DCN’s associate director of forecasting. “Combined with more organic momentum in planning for hotels, warehouses and recreational projects, cumulative activity drove record highs in the DMI. After months of waiting and seeing due to tariff uncertainty, owners and developers have begun moving forward with projects and have assumed higher costs. As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated.”

DCN notes that commercially, all sectors gained momentum in July, led by strength in data centers and warehouses. Most of July’s growth occurred in the institutional sector, with education, healthcare and public projects seeing substantial gains in planning activity. In July, the DMI increased by 41% compared to last year. The commercial segment increased by 24% from July 2024, and the institutional segment rose by 85% over the same period.

Forty-seven projects valued at $100 million or more entered planning throughout July. The largest commercial projects included the $500 million Fairview Connections Data Center in New Cumberland, Pennsylvania, the $500 million Jabil AI Data Center in Salisbury, North Carolina, and the $460 million Peabody Union Hotel in Nashville. The largest institutional projects to enter planning were the $459 million ASM Campus research and development lab and office in Scottsdale, Arizona, the $398 million research and development lab in San Diego, and the $380 million PPV Unaccompanied Housing/Navy Dormitory project in Norfolk, Virginia.