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Shovels hit a $1.5 billion data center in Ohio and a $1 billion multifamily complex in Florida, the latest in a series of billion-dollar projects to begin construction across the country.
QTS Data Centers, a subsidiary of investment management company Blackstone, announced the data center project located in New Albany, Ohio, last year amid the resurgence of American manufacturing construction. Other tech giants, including Amazon and Google, also picked lots in New Albany to build massive data center facilities.
In the meantime, Sunny Isles Beach, Florida Dezer Development also began construction on what will be the tallest waterfront building in the United States. The 63-story Bentley Residences will have 216 units and a host of amenities, including a car elevator, according to the project fact sheet.
But even though these projects are moving forward, total advances fell to start the summer after showing strong momentum in the spring, according to the Dodge Construction Network.
Total construction starts fell 19% in June to a seasonally adjusted annual rate of $1 trillion, the report said. The drop ends in two-month growth streakthat included the biggest monthly increase of the year, said Richard Branch, chief economist at Dodge Construction Network.
Much of that decline was due to a sharp decline in utility and gas projects, Branch said. Nonbuilding starts, which include utilities and gas as well as highway, street and bridge projects, fell 46% in June, after a 49% increase in May.
The construction market remains sluggish as high interest rates continue to weigh on the industry, Branch said.
However, the Dodge Momentum Index, which tracks non-residential building projects entering the planning phase, has been constant over the last year. That suggests owners and developers remain optimistic about future building conditions, he added.
“Dying start activity means these projects are piling up like water behind a dam,” Branch said. “Lower rates in 2024 will allow these projects to flow again, leading to a faster pace of activity towards the end of the year.”
Here are the top nine projects in the U.S. to start in June:
- The $1.5 billion QTS Albany data centers in New Albany, Ohio.
- The $1 billion Bentley residences in Sunny Isles Beach, Florida.
- The $600 million Cipriani Residences in Miami.
- First Solar’s $550 million manufacturing plant in New Iberia, Louisiana.
- The $520 million TGH Taneja Tower surgical building in Tampa, Florida.
- The $510 million Airo Ivy City Yard rail improvements in Washington, DC
- The $434 million Marketplace Apartments in Irvine, California.
- Cadillac’s $400 million El Dorado solar facility in Callahan County, Texas.
- The $400 million replacement of the Belmont Park racing facility in Elmont, New York.
Annual growth
For the first half of the year, total construction starts are holding 7%, according to Dodge.
Non-residential starts, which include retail, office and warehouse projects, rose 1%, while residential and non-building ground-breaking rose 14% and 8%, respectively.
Nonresidential building starts fell 13% in June from a month earlier, mainly due to a 34% drop in manufacturing starts, according to the report. Institutional projects, such as healthcare, also fell by 19% in June. Year-to-date institutional starts are up 11% compared to the same point in 2024.
Non-building construction fell 46% in June. The drop comes after a big increase in May due to both an $11 billion LNG plant in Texas and a $10 billion offshore wind project in Virginia Beach, Virginia, according to Dodge.
Housing starts rose 9% in June, the report said. Multifamily starts were up 23%, while single-family starts were up 4% for the month. Year to date, total housing starts are up 14%.
