Data Center Planning Cools in June, But Overall Construction Pipeline Stays Strong
Data center project planning pulled back in June after several months of what one analyst called “extraordinary levels,” Construction Dive reports, citing new figures from Dodge Construction Network. The Dodge Momentum Index, which tracks nonresidential projects entering the planning stage, fell 1.9% month over month in June, snapping two straight months of gains. Commercial planning, the category that includes data centers, dropped 6.8% for the month. Sarah Martin, Dodge’s director of economic research, said data centers are still driving the index but at a more moderate pace than earlier in the year.
The pullback wasn’t universal. Traditional offices, warehouses, retail and hotel planning all posted gains in June, and institutional planning, which covers healthcare and education, jumped 10.9%. Year over year, the overall index and both commercial and institutional segments are still up 21.8% from June 2025. Dodge noted that without data centers, commercial growth would have been closer to 7.6% year over year. Major projects entering planning in June included a $500 million AI data center campus in Prudhoe Bay, Alaska, a $480 million data center complex in Lakeland, Florida, and a $437 million correctional facility in Nashville, Tennessee.
What It Means for Subcontractors
- Data-center-focused electrical, mechanical, and HDD subs should lock in current pricing and bid terms now. Dodge’s own numbers show the segment cooling from its recent highs, and a slower pipeline going forward means less leverage to renegotiate later.
- Firms overexposed to data center work should look at diversifying toward institutional projects like the $320 million Cone Health Hospital in Winston-Salem and $303 million El Camino Health Hospital in Los Gatos, both entering planning in June with healthcare’s 10.9% monthly growth rate.
- General commercial trades (office buildout, retail, hospitality) should note these categories grew in June even as data centers slowed, suggesting more near-term bid opportunities outside the AI buildout niche.
