Data Centers Drive 6.2% Jump in Nonresidential Construction Planning, Dodge Reports
According to Construction Dive, the Dodge Momentum Index climbed 6.2% month over month in April, with data center construction continuing to dominate nonresidential planning activity after a sluggish start to 2026.
Market Impact
The index, which tracks nonresidential construction projects entering the planning stages, now sits 14.1% above April 2025 levels, according to Dodge Construction Network. Commercial planning jumped 8.1% month over month, while institutional planning edged up 1.5%.
The data center sector is doing the heavy lifting. Commercial planning rose 37.2% year over year in April, but exclude data center projects and that figure drops to just 5.8%. “Data centers remain the largest driver behind growth in the Dodge Momentum Index, but several other sectors appeared to stabilize over the month,” said Sarah Martin, director of economic research at Dodge Construction Network.
The pipeline reflects real project dollars. Among the 44 projects valued at $100 million or more that entered planning in April, the largest commercial entries included a $500 million Google data center in Buffalo, West Virginia, a $470 million Stargate data center in Burlington, Texas, and a $450 million data center in Jay, Maine. Jacobs CEO Bob Pragada recently described the data center boom as “still in the early stages,” noting the company’s data center business grew more than 100% over the past year.
Martin cautioned that labor shortages, higher material costs, and supply chain disruptions continue to weigh on broader construction confidence.
What It Means for Subcontractors
- Data center projects are generating consistent, high-value work for electrical, mechanical, and civil subcontractors. With commercial planning up 37.2% year over year, the pipeline is real and growing.
- Three projects above $450 million entered planning in April alone. Subs positioned in hyperscaler markets like Texas and West Virginia should be tracking these developments closely for bid opportunities.
- The gap between overall commercial growth (37.2%) and non-data-center growth (5.8%) signals that most of the new planning volume is concentrated in a single sector. Diversified subs may need to lean into data center specialization to capture a share of that growth.
- Labor shortages and material cost pressures flagged by Dodge are operational realities subcontractors should price into bids now, not after award.
