September 9, 2026
Construction Planning Shifts Beyond Data Center Boom
Large $350+ million projects get rolling in Texas, Ohio and Virginia
In construction planning, a single month rarely tells the whole story, and August's numbers prove the point. The Dodge Momentum Index, tracked monthly by Dodge Construction Network, edged down 0.4% to 282.0, a modest retreat from July's revised reading of 283.0. But beneath that nearly flat headline number sits a market recalibrating rather than retreating.
Commercial planning slipped 3.0% as the red hot data center pipeline finally cooled, yet institutional planning surged 4.9%, propelled by fresh activity in education, recreation and public buildings. Compared with a year ago, the index remains up 4.2%, evidence that the broader planning pipeline has not lost its footing. Strip out data centers, though, and commercial planning tells a starker tale, down nearly 19% from last year's frenzied pace. For an industry watching where the next wave of projects will land, August looks less like a slowdown and more like a rebalancing.
The DMI is a monthly measure based on the three-month moving value of nonresidential building projects entering planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.
Dodge Momentum Index
Commercial Planning
Institutional Planning
Market Analysis
"Strength in planning momentum remained relatively broad based in August. Weaker data center planning predominantly drove the flatter trend, while most other sectors saw an acceleration in planning momentum."
Sector Performance Highlights
Strong Growth Sectors
- Institutional Building (+4.9%): Broad based gains across education, recreational and public projects
- Office, Hotels and Parking Garages: Planning activity accelerated after a slower stretch
- Institutional, Year over Year (+7.8%): Sustained pipeline growth versus August 2025
Challenged Sectors
- Commercial Building (-3.0%): Data center planning pulled back sharply from recent highs
- Data Centers, Retail Stores and Warehouses: Slower planning activity throughout the month
- Healthcare: Pulled back slightly after four straight months of sustained growth
Year over Year Performance (Aug 2025 vs Aug 2026)
A total of 31 projects valued at $100 million or more entered planning throughout August, underscoring that the pullback in headline momentum is less a retreat than a redistribution. Data center planning, which fueled outsized commercial gains in late 2025, has begun to normalize, while institutional demand across education, recreation and public buildings is filling the gap. That shift, more than the modest 0.4% monthly dip, is the real story behind August's numbers.
Largest Projects Entering Planning in August
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.
