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Notable strength in data center and warehouse activity accounted for the growth as developers absorb tariff-related cost increases, according to Dodge Construction Network.
Published Aug. 11, 2025
Aerial view of a large distribution center warehouse under construction.
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Another month of construction planning growth indicates a wave of projects is breaking loose, according to Dodge Construction Network.
The Dodge Momentum Index, which tracks nonresidential projects entering the planning stage and leads actual construction spending by a full year, soared 20.8% in July. Commercial and institutional planning spiked 14.2% and 35.1%, respectively, during the month. The rise follows a 6.8% gain in June.
“Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research and development labs, hospitals and service stations,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “After months of wait-and-see due to tariff uncertainty, owners and developers have begun to move forward with projects and assumed higher costs for them.”
Tariffs on materials such as steel and aluminum have added pressure to construction budgets, causing delays or outright cancellations on a number of jobsites. Though some developers are still moving forward, Martin cautions others will remain hesitant. That dynamic will likely keep planning activity uneven in the months ahead, she said.
“Combined with more organic momentum in planning for hotels, warehouses and recreational projects, cumulative activity drove record highs in the DMI,” said Martin. “As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated”
Momentum expanded across all commercial subsectors, with notable strength in data center and warehouse planning. Massachusetts’ DOT also contributed more than $700 million in planning for the construction of several service plaza projects across the state.
Institutional activity accounted for the bulk of July’s gains. Education, healthcare and public projects all posted substantial increases in planning, according to Dodge. For example, the Hospital Corp. of America submitted plans for several new facilities in July, helping push institutiona