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Construction progress is on a megaproject rollercoaster.
Total construction starts fell 24.8% in August at a seasonally adjusted annual rate of $1.34 trillion, according to Dodge Construction Network data released Monday. The drop gives back a lot Increased activity levels in Julywhen a wave of large data center and manufacturing projects went raw.
“After strong activity last month, construction starts are largely normalized throughout August,” said Sarah Martin, director of economic research for the Dodge Construction Network. “Abstracting month-to-month volatility, the story remains consistent.”
The story Martin is referring to is the strength of data center, semiconductor and energy construction for much of this year. Other sectors, however, are facing lower activity due to deep labor shortage i accelerate material pricesshe said
But growth engines hit a slow pace to end the summer.
Nonresidential starts fell 32% month-over-month in August, with manufacturing construction posting the biggest decline in the category, down 80.8%, the report said. Meanwhile, innovative offices and data centers fell 31.3% in August.
Institutional construction also slowed during the month, falling 18.1% month-on-month in August, due to weakness in education starts, which fell 14.3% over the same period. Healthcare activity, on the other hand, bucked this trend with a 96.1% month-on-month increase after a weak July, according to the report.
Non-building construction didn’t fare much better. Category starts were down 26.7% month over month in August. Highway and bridge construction decreased by 20.8% during this period.
Residential construction posted a smaller decline, down 5.2% month-on-month in August.
Despite the decline in all categories, construction starts are still exceeding levels at this time last year. Total starts rose 15.2% in the first eight months of 2026, led by a 23.4% and 22.2% increase in nonresidential and nonbuilding construction, respectively. Housing starts decreased by 1.8% compared to the same period of the year.
For Dodge, the biggest projects that got underway in August included:
- The $3.5 billion Amazon STACK Blanchard State Line data center in Mooringsport, Louisiana.
- The $3.5 billion Steel River Energy Center in Wilson, Arkansas.
- The $3.2 billion Clarksville Hyperscale Data Center in Clarksville, Arkansas.
- The $2.9 billion Bronx Detention Center in Mott Haven, New York.
- The $1.4 billion Bluegrass Power Generation Project in Jeffersonville, Ohio.
- The mixed-use tower at 655 Madison Ave. of $1.1 billion in New York City.
- The $772 million Heritage Prairie Renewable wind farm in Dwight, Illinois.
- The $244 million The Residences at The Nashville Edition in Nashville, Tennessee.
- The mixed-use and affordable housing development 350 S. Fifth Ave. of $227 million in Ann Arbor, Michigan.
