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]

Core Insights - The construction planning pipeline has shown significant growth, indicating potential new projects starting by late 2026 [1][2] - The Dodge Momentum Index (DMI) increased by 7.5% in August, with commercial planning rising by 8.7% and institutional activity growing by 5.4% [2] - Year-to-date planning activity is 30% higher compared to the same period in 2024, following a 20.8% increase in July [2][5] Industry Trends - Stronger construction activity is anticipated in late 2026 or early 2027, driven by sectors such as data centers, warehouses, and hotels [3] - Despite positive trends, there are concerns about fiscal and economic uncertainties that may affect future planning activities [3] - Institutional planning for education and healthcare projects has slowed but remains positive, while public building projects have seen significant gains [4] Project Highlights - A total of 51 projects valued at $100 million or more entered planning in August, with notable commercial and institutional projects [5] - Major commercial projects include significant data center developments and warehouse expansions [6] - Key institutional projects include the $500 million Big Sky data center campus and the $490 million Weld County Judicial Center [6]