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Data center activity continues to fuel construction planning growth, according to a recent report released by the Dodge Construction Network.
The Dodge Momentum Index (DMI), a monthly measure of the value of nonresidential building projects entering the planning stage, grew 20.8% in July to 280.4 from the upwardly revised June reading of 232.1. Over the month, commercial planning grew 14.2% while institutional planning expanded 35.1%. Year-to-date, the DMI is up 27% from the average reading over the same period in 2024.
“Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research & development labs, hospitals and service stations,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Combined with more organic momentum in planning for hotels, warehouses, and recreational projects, cumulative activity drove record highs in the DMI. 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. As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated.”
In July, all commercial sectors grew. Data centers and warehouses led this increase. MassDOT also committed over $700 million in planning for several service plaza construction projects across the state.
Most of the month’s growth came from the institutional sector. Planning activity jumped in education, healthcare, and public projects. Notably, the Hospital Corporation of America announced a series of hospital developments, contributing to a sharp increase in institutional planning.
Overall, the DMI rose 41% compared to July 2024. Commercial planning increased by 24% year-over-year, while institutional planning jumped 85%. Commercial planning saw a 26% increase from 2023 to 2025, even without including data center projects. This growth was mainly fueled by warehouse development.
In total, 47 projects valued at $100 million or more entered the planning phase in July.
Some of the biggest commercial projects include:
- The $500 million Fairview Connections Data Center in New Cumberland, Pennsylvania
- The $500 million Jabil AI Data Center in Salisbury, North Carolina
- The $460 million Peabody Union Hotel in Nashville, Tennesse
On the institutional side, major projects included:
- The $459 million ASM Campus R&D lab and office in Scottsdale, Arizona
- A $398 million R&D lab in San Diego, California
- The $380 million PPV Unaccompanied Housing/Navy Dormitory in Norfolk, Virginia
Why are Data Center Projects Booming?
As our world becomes increasingly connected, the demand for data centers is expected to grow significantly. To keep up with construction trends long-term, we must focus on sustainability. This means looking at energy use and the materials needed for building these facilities.
A data center is a central hub for computing and storing data. It supports shared applications and digital services. Smaller organizations may set up these operations in a room within their building. Larger companies, however, often have multiple standalone centers to handle their large data processing and storage needs.
The recent surge in data center construction across the U.S. can be largely traced back to the COVID-19 pandemic. As most Americans stayed home, online shopping soared. Companies like Amazon and Walmart quickly boosted their data infrastructure to handle the rising demand.
This growth remained robust post-pandemic and has continued despite ongoing concerns over the impact of tariffs. There are currently over 5,400 data centers operating in the U.S. – by far the most data centers operating in a single country in the world.
America's growing fleet of data centers needs a lot of power. This demand is putting more strain on our aging electrical grid.
The American Society of Civil Engineers gave America’s energy infrastructure a D+ in its 2025 Report Card on America’s Infrastructure.
ASCE said that electric vehicles (EVs) and data centers will need 35 gigawatts (GW) of electricity by 2030. This is a jump from 17 GW in 2022.
“This rapid acceleration, compounded by federal and state net-zero greenhouse gas emissions goals, means utilities will need to double existing transmission capacity to connect new renewable generation sources,” the report states. “Transmission investments have risen by $5 billion from 2017 to 2022, and the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) are supporting renewable technologies and grid hardening measures.”
GPRS delivers a comprehensive array of solutions for subsurface damage prevention, existing condition documentation, and management of construction and facility projects, ensuring that initiatives like data center builds remain on schedule, within budget, and safe.
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Frequently Asked Questions
What is 3D Photogrammetry?
3D photogrammetry is a technique that uses overlapping photographs taken from multiple angles to reconstruct three-dimensional models. It relies on computer vision algorithms to triangulate spatial coordinates (also known as orthomosaic imaging and registration), to produce textured 3D meshes, walkthrough virtual tours or point clouds for visualization and measurement. GPRS can integrate subsurface feature markings via photogrammetry and integrate them into a full above and below-ground CAD drawing or BIM model, as required.
What are the benefits of utility locating?
Utility locating is a critical step in construction planning that helps prevent costly damage to underground infrastructure, enhances worker safety by avoiding hazardous utility strikes, and ensures compliance with regulatory standards. By accurately identifying the location of buried utilities, GPRS enables project teams to reduce legal liabilities, minimize delays caused by unexpected obstructions, and maintain efficient workflows. A thorough utility locating process supports safer, smarter, and more cost-effective construction execution.
