Monthly construction planning slipped again in February

Core Insights - Nonresidential construction planning has declined for two consecutive months at the start of 2026, with the Dodge Momentum Index dropping 7.3% month-over-month in February, following a 6.3% decrease in January [1][2] Group 1: Planning Trends - Planning momentum normalized in February after a surge in the latter half of 2025, with elevated risks around costs, labor, and geopolitics constraining builder confidence in the near term [2] - Despite the overall decline, there is a robust planning pipeline suggesting an acceleration in construction spending in 2027 [2] - Healthy planning activity was noted in data centers and healthcare facilities, while retail stores and warehouse construction also showed strong demand [2] Group 2: Commercial and Institutional Planning - Planning for commercial projects dropped 8.9% month-to-month but remains 12.3% higher compared to February 2025, largely driven by data center planning [3] - Without data center projects, commercial planning would have increased by 4.4% over the past year [4] - Institutional construction, including education and public builds, saw a month-to-month decline of 4% [4] Group 3: Major Projects - In February, 23 projects valued at $100 million or more entered planning, including significant commercial and institutional projects [4] - Notable projects include the QTS DFW2 data center in Texas valued at $580 million, the CyrusOne data center at $500 million, and the Orange County Convention Center expansion at $400 million [6]