Nonresidential construction planning rebounded in December, driven by a strong increase in data center and warehouse projects, according to the Dodge Construction Network.
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, rose 10.2% to close in 2024. Commercial planning led the charge with a 14.2 percent increase, while institutional planning posted a more modest gain of 2.5 percent, the report said.
“Commercial activity rebounded strongly in December, thanks to a re-acceleration in data center and warehouse planning activity,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Overall, the strong performance of the Momentum index last year is expected to support non-residential construction spending through 2025.”
Year-on-year, DMI was up 19% from December 2023. Commercial planning was up 30% over the period, while institutional planning was largely flat.
Data centers continue to play a critical role in this growth, according to Dodge, but the increase was also more broadly based. Without the inclusion of data centers, business planning would still have grown by 8%, while overall DMI would have increased by 5%.
A total of 32 projects valued at $100 million or more entered the planning phase in December. Major commercial projects include:
- Six phases of the $1.6 billion Powerhouse 95 data center in Fredericksburg, Virginia.
- Four phases of the $1 billion Brambleton data center at Tech Park in Ashburn, Virginia.
The largest institutional projects to enter planning included:
- The $226 million OhioHealth Ambulatory Cancer Center in Columbus, Ohio.
- The $220 million county jail in Peoria, Illinois.
