August 7, 2026

Construction Planning Regains Momentum in July

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Large $350+ million projects get rolling in Texas, Virginia and Illinois

 

For much of the early summer, planning activity told two different stories depending on where you looked. Now, according to Dodge Construction Network, those threads have converged into a single narrative of acceleration. The Dodge Momentum Index climbed 6.9% in July to 291.7, pairing a rebound in commercial planning with even stronger institutional gains.

Data centers, which had paused briefly in June, picked up momentum again, even as office, warehouse, retail and hotel planning slowed their pace. On the institutional side the growth ran broader, touching education, healthcare, recreational, religious and public building sectors alike, with public building planning alone more than doubling over the past two months.

The result is an index up nearly 12% from a year earlier, though the picture is more complicated beneath the surface, since stripping out data centers would actually leave commercial planning below last July's levels. Here is what the latest Dodge Construction Network report reveals.

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 Growth
+6.9%
July 2026 vs June 2026
Commercial Planning
+4.1%
Month over month
Institutional Planning
+13.1%
Month over month
ARTICLE CONTINUES BELOW




DODGE MOMENTUM INDEX (2000=100, SEASONALLY ADJUSTED)
Index Jul 2026 Jun 2026 % Change
Dodge Momentum Index 291.7 273.0 +6.9%
Commercial Building 354.5 340.7 +4.1%
Institutional Building 214.1 189.4 +13.1%
Source: Dodge Construction Network

 

Market Analysis
"Data centers and broad based growth across key institutional sectors supported stronger planning activity in July. Sustained planning activity should bolster construction in late 2027, though real growth will prove more constrained as inflationary expectations are priced into project costs."
 - Sarah Martin, Director of Economic Research, Dodge Construction Network

 

Sector Performance Highlights

Accelerating Sectors
  • Data Centers: Regained momentum after a brief pause in June
  • Public Building: Planning more than doubled over the past two months
  • Education, Healthcare, Recreational and Religious: All accelerated in July
Slowing Sectors
  • Office: Planning pace eased in July
  • Warehouse: Planning pace eased in July
  • Retail and Hotel: Both slowed after recent gains

 

Year over Year Performance (July 2025 vs July 2026)

+11.7%
Dodge Momentum Index
+13.8%
Commercial
+7.6%
Institutional
-16.2%
Commercial, Excluding Data Centers

 

Largest Projects Entering Planning in July

MAJOR PROJECT STARTS ($100M+, 59 PROJECTS TOTAL)

Top Commercial Projects

Data Center Campus
Petersburg, Virginia
$500M
DFW20C Data Center
Fairfield, Texas
$500M
Google Data Center (Project Avalon, Building 2)
Buffalo, West Virginia
$500M

Top Institutional Projects

Northwestern Memorial Hospital Cancer Center
Chicago, Illinois
$351M
BeOne Medicines Research and Development Facility (Expansion)
Pennington, New Jersey
$300M
Houston Livestock Show and Rodeo Agricultural Complex
Houston, Texas
$300M

 

The gains in July highlight how concentrated this cycle of planning activity has become. Data center projects remain the single biggest swing factor in the commercial figures, and once they are set aside, commercial planning is actually running below where it stood a year ago, a reminder that last July's surge set a high bar for comparison. Institutional planning tells a steadier story, with strength spread across education, healthcare and public building work rather than resting on any single sector. That broader base suggests the institutional side of the index may hold its gains more reliably than the commercial side in the months ahead, even as rising project costs work against real growth industry wide.

 

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.

 

 

 




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