Construction planning falls again, but data center boom continues

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Building planning momentum faltered in November, although builders in key sectors proceed to press ahead, in line with Dodge Building Community.

The Dodge Momentum Index, which tracks nonresidential development tasks getting into the planning levels and leads precise development spending by a full yr, slipped 1.1% in November. Business planning ticked down 0.1%, a marginal drop in comparison with the three.4% lower in institutional planning over the month, in line with the report.

Regardless of the lower, the index sits 36% larger year-to-date than its common studying over the identical interval in 2024. That’s largely as a result of momentum in the data center and healthcare development sectors, mentioned Sarah Martin, affiliate director of forecasting at Dodge Building Community.

“The inflow of high-value knowledge middle work, compounded by inflationary price pressures, continues to help elevated DMI ranges,” mentioned Martin within the launch. “Total, nonresidential development is anticipated to strengthen in 2027, led primarily by knowledge middle and healthcare tasks.” However different nonresidential sectors usually tend to face softer demand within the upcoming yr. Martin warned final month to count on total planning to decelerate on common, particularly as macroeconomic risks around costs proceed to mount.On the business aspect, planning exercise weakened in November for warehouse and lodge tasks. These figures remained considerably regular for conventional places of work and retail development, in line with the report.

On the institutional aspect, which incorporates training and healthcare tasks, planning additionally slowed throughout most classes after robust exercise in latest months, in line with Dodge. Nevertheless, the report famous constructive momentum round religious-related development.

In comparison with November 2024, the index jumped 50%, with the business and institutional segments up 57% and 37%, respectively. With out the data center boom, business planning progress could be 36% over that very same interval, in line with the report.

A complete of 28 tasks valued at $100 million or extra entered planning in November, in line with Dodge. Main business tasks included:

• The $406 million Novva Mesa knowledge middle in Mesa, Arizona.
• The $317 million Compass knowledge middle in Hoffman Estates, Illinois.
• The Medina Know-how Knowledge Middle Park in Medina, Texas.

The most important institutional tasks to enter planning included:

• The $425 million Novi College renovations in Novi, Michigan.
• The $250 million James Metropolis County Authorities Advanced relocation in Williamsburg, Virginia.
• The $180 million Police and Hearth Administration Headquarters in Mountain View, California.