This audio is automatically generated. Please let us know if you have any comments.
Nonresidential construction planning fell 6.3% month-on-month in January due to weaker commercial and institutional activity, essentially erasing a late-2025 gain, according to the Dodge Momentum Index.
Despite the general pullback, data centers maintained their upward trajectory.
“Planning momentum cooled in January across most commercial and institutional sectors,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Data center projects continue to lead the way, but after high activity in late 2025, most non-residential sectors are transitioning to a more sustainable growth pattern.”
The planning figures, which lead real construction spending in a full year, showed a month-on-month drop of 7.2% and 4.4% in commercial and institutional planning, respectively.
However, the index still shows annual growth of 26% for commercial projects and 34% for institutional projects, compared to January 2025. The overall index is up 29% year-over-year and reached an all-time high in July 2025. Since then, it has declined modestly from its most recent high.
Coming closer, it was data center construction that was heavily supported global planning figures in 2025. The January report showed more of this same trend. In fact, the top three projects valued at $100 million or more to enter planning in January were data centers, according to Dodge.
Apart from this strength, however, momentum is low for other construction projects.
For example, planning activity in January slowed month-on-month in almost all business segments, including office, warehouse and hotel projects. Figures improved to start the year for retail construction, according to Dodge.
Institutional planning, on the other hand, was largely slowed down in January due to the slowdown in education, health and public building plans. Recreational and religious building projects continued to expand.
A total of 35 projects valued at $100 million or more entered planning in January, according to the Dodge Construction Network. Major commercial projects include:
- The $500 million IEP data center in Monongahela Township, Pennsylvania.
- The $400 million Mountain Road Technology Park data center in Glen Allen, Virginia.
- The $350 million Bitfarm data center in Nesquehoning, Pennsylvania.
The largest institutional projects to enter planning included:
- The $250 million USACE Barracks at Fort Hood, Texas.
- The $175 million UEPH barracks at Joint Base Myer-Henderson in Arlington, Virginia.
- The $148 million Eurofins Lancaster biopharmaceutical laboratory and office building in Lancaster, Pennsylvania.
