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Dive brief:
- The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, rose 10.4% in June due to continued data center growth, according to the Dodge Construction Network.
- Planning in the institutional sector, such as education, life sciences and health, increased by 0.2%, while commercial planning, driven by data center workincreased by 14.5%.
- “Data centers continued to dominate planning projects in June,” said Sarah Martin, associate director of forecasting for Dodge Construction Network. “The DMI is up 43% from June 2019 levels, indicating strong construction spending in 2025.”
Diving knowledge:
Growth in the data center sector is a recurring trend in the Dodge Momentum Index in 2024. Martin also observed most segments in June, although not as strong as data centers, also posted a strong impetus in planning.
This indicates confidence in market conditions in 2025, he said.
During June, a total of 38 projects valued at $100 million or more were planned. The most important projects in the commercial sector include:
- The $420 million Oaklawn Land Bay A data center in Leesburg, Virginia.
- The $400 million PowerHouse Irving data center in Irving, Texas.
The largest institutional projects to enter planning included:
- The $305 million Horizon Youth Center Annex in Woodstock, New York.
- $285 million research and development buildings in San Diego, California.
However, the Architectural Turnover Index, an indicator of construction work over nine to 12 months, posted weak results once againaccording to the most recent data from the American Institute of Architects.
The pace of inquiries for new projects, new work coming to companies and the value of design contracts signed fell further in May. According to the AIA, this stems in large part from high interest rates, which continue to cause uncertainty in the industry.
