June 8, 2026
Commercial Project Activity Broadens Beyond Data Centers
Healthcare, retail and office sectors join data centers in driving nonresidential planning gains
Something has been quietly shifting iacross America's construction planning landscape. For months, the story of nonresidential planning has been almost entirely written by data centers — colossal, capital-intensive projects that skewed indexes and made it hard to read the underlying market. May's numbers from Dodge Construction Network suggest that story is getting more complex. The Dodge Momentum Index (DMI) rose 5.9% to 275.7 in May, its strongest reading in months, but the more telling detail is what's behind the gain.
Yes, data centers are still pulling their weight. Three projects alone account for well over $1 billion in new planning activity. Yet healthcare is accelerating. Retail stores are recovering. Office planning is edging forward. Institutional building, long the quieter half of the index, grew 3.1%.
Year over year, the DMI is up a striking 33.8% compared to May 2025, a figure that points to something more durable than a single-sector surge. The picture is not without shadows. Labor constraints, elevated material costs, and supply chain pressures are tempering owner sentiment. Still, the breadth of May's gains signals a market finding its footing.
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.
DMI Monthly Change
DMI Index Level
Year-Over-Year Growth
Market Analysis
"Nonresidential planning continued to stabilize throughout May. Growth in the DMI continued to be led by data center activity, but key sectors — such as healthcare, retail stores and offices — gained momentum as well. Nonetheless, the broader outlook remains cautious, as persistent labor constraints, elevated material costs and ongoing supply chain pressures weigh on owner sentiment in the near term."
Sector Performance Highlights
Gaining Momentum
- Data Centers: Continued to lead commercial planning activity with multiple $400M+ projects entering the pipeline
- Traditional Office Buildings: Planning improved over the month, a notable sign of stabilization
- Retail Stores: Recovered momentum after recent softness
- Healthcare: Continued to accelerate on the institutional side
- Government & Religious Buildings: Added to institutional gains in May
Slowing Sectors
- Warehouses: Planning activity pulled back over the month
- Hotels: Momentum slowed after recent gains
- Parking Garages: Planning declined month-over-month
- Educational Buildings: Eased after prior strength
- Recreational Buildings: Momentum softened in May
Year-Over-Year Performance
(May 2026 vs. May 2025)
Largest Projects Entering Planning in May
Economic Headwinds to Watch
Despite May's broad-based gains, the planning environment carries meaningful risks. Persistent labor constraints, elevated material costs and ongoing supply chain pressures continue to weigh on owner sentiment. While data center demand provides a powerful floor for commercial planning, the year-over-year commercial gain drops from +41.2% to just +6.6% when data centers are excluded — underscoring how concentrated the recovery remains. Volatility in month-to-month planning activity is expected to remain elevated as these macro pressures persist.
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.
