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Construction began to pick up in March on the back of three power and utility megaprojects, while the dominant data center sector took a breather.
According to the Dodge Construction Network, total starts grew a further 12.8% month-over-month in March to reach a seasonally adjusted annual rate of $1.22 trillion.
That jump was largely attributed to a 353.6% month-over-month jump in the electric power and utilities segment, which pushed overall nonbuilding construction starts up 37.9% in March and continued what Dodge called a “flip-flopping streak.”
“A few strong categories overcame slight weakness in all others in March,” said Eric Gaus, chief economist at Dodge Construction Network. The monthly increase was an almost mirror investment of the Monthly drop of 13.2% observed in February.
As it was at the beginning of 2026, a few big non-buildable startswhich includes power and infrastructure projects, helped boost the overall numbers. However, highway and bridge starts fell 13.6% month-on-month, while environmental public works fell 4.1% over the same period, reversing February’s gains.
Courtesy of Dodge Construction Network
In the 12 months ending in March 2026, total non-building starts rose 15.8%, according to Dodge. Environmental public works fell 6.4% over the same period, and highway and bridge works fell 1%. In trend, however, public service and gas starts increased by 52.3% year-on-year.
In the non-residential category, starts improved 6.3% month over month in March, driven by a 251.9% increase in manufacturing starts after a weak February. Hotels and shops also increased month-on-month by 19.3% and 5.6%, respectively. The overall institutional category was down 1.5% in March, although healthcare continued its positive momentum with a 9.7% month-over-month increase and education starts grew 3.4%
That strength belied softer numbers in the commercial sector, which sank 9.2% month-on-month, driven by a 16% drop in office and data center starts. This pullback followed a 159.6% increase in February.
Courtesy of Dodge Construction Network
Over the past 12 months, total non-residential starts increased 6.5% from March 2025. Commercial starts increased 19.2%, manufacturing increased 20.2% and institutional starts decreased 5.7% over the same period.
“The commercial segment shows the strongest with 12-month growth for all subcategories except storage,” Gaus said.
Home starts grew 2.6% in March month-on-month, driven by a 15.3% expansion in multifamily openings. Single-family starts, on the other hand, decreased by 5.3%. In 12 months, housing starts fell 5.3%, due to a 15.7% decline in the construction of single-family homes. Multifamily starts increased by 16.3% during the same period.
Here are the biggest projects to start in March, according to Dodge:
- The $3.4 billion Shintech Ethylene PEP-2 and Vinyl Chloride Monomer (SPP-4) Project in Plaquemine, Louisiana
- The $2.5 billion Darden Clean Energy project in Cantua Creek, California
- The $2.4 billion Savannah River Plutonium Processing Facility project in Aiken, South Carolina
- The $2 billion Phase 1 natural gas plant infrastructure project in Panhandle, Texas
- The $2 billion CPV Basin Ranch Energy Center in Barstow, Texas
- The port’s $953 million Terminal 1 replacement project in Anchorage, Alaska
- The $727 million Discovery Park Apartments in Irvine, California
- The $577 million Harborside 4 residential tower project in Jersey City, New Jersey
- The $420 million 61 Broadway residential conversion project in New York City
