Nonresidential Planning Pipeline Continues to Settle
BOSTON, MA – December 5, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, decreased 1.1% in November to 276.8 (2000=100) from the downwardly revised October reading of 280.0. Over the month, commercial planning ticked down 0.1% and institutional planning declined by 3.4%. Year-to-date, the DMI is up 36% from the average reading over the same period in 2024.
“The influx of high-value data center work, compounded by inflationary cost pressures, continues to support elevated DMI levels,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Overall, nonresidential construction is expected to strengthen in 2027, led primarily by data center and healthcare projects. Other nonresidential sectors are more likely to face softer demand and heightened macroeconomic risks.”
On the commercial side, activity slowed down for warehouses and hotels, while planning momentum was sustained for data centers, traditional office buildings and retail stores. On the institutional side, education, healthcare, public and recreational planning saw weaker momentum, after strong activity in recent months. Planning for religious buildings, however, continued to accelerate. Year-over-year, the DMI was up 50% when compared to November 2024. The commercial segment was up 57% (+36% when data centers are removed) and the institutional segment was up 37% over the same period.
A total of 28 projects valued at $100 million or more entered planning throughout November. The largest commercial project included the $406 million Novva Mesa Data Center (Phase 2, 204MW) in Mesa, Arizona, the $317 million Compass Data Center (Buildings 4 & 5) in Hoffman Estates, Illinois, and the Medina Technology Data Center Park in Medina, Texas. The largest institutional projects to enter planning were the $425 million Novi School Renovations in Novi, Michigan, the $250 million James City County Government Complex relocation in Williamsburg, Virginia and the $180 million Police and Fire Administration Headquarters in Mountain View, California.
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.
