May 8, 2026
Commercial Planning Posts Strong Monthly Increase
Data centers stayed dominant as offices, warehouses and hotels showed renewed momentum
For three consecutive months, the numbers had been telling a cautionary tale — momentum in nonresidential construction planning was cooling, and the industry was watching. Then came April. The Dodge Momentum Index, issued by Dodge Construction Network, climbed 6.2% to 264.2, snapping a troubling streak and signaling that planning activity may be finding its footing after a turbulent winter. The rebound was not uniform — it was commercial construction pulling the index higher, surging 8.1% on the back of a data center boom that continues to reshape the American building landscape.
Yet beneath the headline recovery, the picture is more complicated. Institutional planning inched forward just 1.5%, a reminder that schools, hospitals, and public buildings remain caught in a web of labor shortages, supply chain disruptions, and an uncertain fiscal environment.
Retail store planning pulled back even as office buildings, warehouses, hotels, and parking garages found renewed momentum. The April reading represents a 14.1% year-over-year gain versus April 2025 — evidence that, for now, the industry's planning pipeline remains substantially stronger than it was a year ago, even as near-term risks hang heavy in the air.
The Dodge Momentum Index is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months. A rising DMI signals increased construction activity on the horizon; a declining reading warns of potential slowdowns ahead.
April 2026 DMI Data Table
| Category | Apr-26 | Mar-26 | % Change |
|---|---|---|---|
| Dodge Momentum Index | 264.2 | 248.8 | +6.2% |
| Commercial Building | 344.6 | 318.7 | +8.1% |
| Institutional Building | 164.7 | 162.2 | +1.5% |
Source: Dodge Construction Network. March figure shown is downwardly revised reading.
Expert Commentary
"After three months of slowing momentum, nonresidential planning began to find its footing in April. Data centers remain the largest driver behind growth in the Dodge Momentum Index, but several other sectors appeared to stabilize over the month. Macroeconomic risks remain weighted to the downside, with labor shortages, higher material costs and supply chain disruptions weighing on owner confidence in the near-term."
Sarah Martin, Director of Economic Research, Dodge Construction Network
Sector Performance Highlights
Commercial Sectors — Gaining Momentum
Traditional office buildings, data centers, warehouses, hotels, and parking garages all posted growth in April. Data centers remain the dominant force, but the breadth of gains across multiple commercial categories signals a more broadly based recovery. Excluding data centers entirely, commercial planning still grew 5.8% year-over-year — a meaningful indicator of underlying demand.
Retail & Mixed Institutional — Headwinds Persist
Retail store planning slowed its pace in April even as neighboring commercial sectors advanced. On the institutional side, recreational, public, and religious planning each pulled back over the month, partially offsetting gains from re-accelerating education and healthcare activity.
Year-Over-Year Performance
Major Projects Entering Planning — April 2026
A total of 44 projects valued at $100 million or more entered the planning pipeline in April. Selected highlights:
Commercial Projects
Buffalo, West Virginia
Burlington, Texas
Jay, Maine
Institutional Projects
San Diego, California
Downer's Grove, Illinois
Naval Base Coronado, California
Economic Context & Industry Outlook
Given persistent economic and fiscal uncertainty, volatility in planning activity will remain high. Macroeconomic risks remain weighted to the downside, with labor shortages, higher material costs, and supply chain disruptions continuing to weigh on owner confidence in the near term. On the commercial side, data centers have become the towering force behind index gains — but the April report offers cautious encouragement: strip out data center projects from the 2023–2025 period entirely, and commercial planning still posted a 37.2% year-over-year advance, reflecting strength across warehouses, offices, and hospitality that goes well beyond the AI infrastructure surge alone.
Data Source: Dodge Construction Network
The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.
