November 2025 Construction Industry Report | Conequip.com

What the Dodge Momentum Index Shows

According to Dodge Construction Network’s latest Dodge Momentum Index (DMI) —a key forward-looking indicator of new nonresidential building activity—the value of projects entering planning slipped 1.1% in November. However, the index remains significantly elevated compared with a year ago, and high-value megaprojects are helping keep the construction outlook more resilient than superficial numbers might suggest.

The DMI is a trusted barometer in the construction industry, tracking the dollar value of nonresidential projects entering the planning stage. Because planning typically precedes actual construction starts by 12–18 months, the index is watched closely by contractors, developers and economists as a bellwether of future spending. In November, the index fell modestly—marking the second consecutive monthly decline in planning momentum. Most of that pullback stemmed from weakness in institutional project categories, while commercial planning barely budged.

Yet viewed on a year-to-date basis, the story looks very different. Through November, the DMI was about 36% higher than its average reading over the same period in 2024. That speaks to the continued strength of certain sectors that are driving much of the planning activity forward.

Data Centers: The Engine of Growth

The standout theme in the current construction landscape remains the boom in data center planning. While most commercial categories have shown softness-—warehouses, hotels and many traditional office or retail projects have slowed–data centers continue to draw developer interest and capital. Projects like the $406 million Novva Mesa Data Center in Mesa, Arizona, the $317 million Compass Data Center in Hoffman Estates, Illinois, and the expansive Medina Technology Data Center Park in Medina, Texas all entered planning in November.

Without this strong data center activity, the commercial segment’s performance would look much weaker In fact, Dodge estimates that commercial planning growth would be about 36% year-over-year rather than 57% if data centers were excluded. That illustrates just how pivotal data centers have become to construction planning momentum.

This trend mirrors broader market data: industry analysts have reported massive year-to-date increases in data center construction spending, with some sources estimating nearly double the previous year’s totals—-a testament to the enduring demand for digital infrastructure as cloud computing, AI and data storage requirements expand rapidly.

Institutional Projects: Mixed Signals

On the institutional side—hospitals, schools, government facilities and similar public sector builds,momentum weakened more noticeably in November. Institutional planning declined by around 3.4%, a sharp contrast with earlier months when health care and public projects helped offset softness elsewhere. Despite this monthly pullback, the institutional segment is still up roughly 37% compared with November 2024. That indicates that while activity has softened relative to recent peaks, longer-term backlogs and previously planned projects continue to support robust planning levels.

Some specific large institutional projects that entered planning in November include renovation work for the Novi School District in Michigan (around $425 million), the relocation of the James City County Government Complex in Virginia (about $250 million), and a new Police and Fire Administration Headquarters in Mountain View, California (about $180 million). These megaprojects illustrate how big-ticket public and community infrastructure investments still play an important role in the planning pipeline.

Weaknesses in Traditional Sectors

With pockets of strength in data centers and select institutional builds, much of the rest of the construction planning landscape looks less vibrant. According to Dodge’s analysis, warehouse and hotel planning activity weakened in November, and many traditional office and retail projects showed minimal momentum. This suggests broader economic headwinds—such as rising financing costs, supply chain challenges and ongoing uncertainty over demand for conventional commercial space—may be making developers more cautious about initiating new builds.

Higher material and labor costs have been another recurring theme for the industry throughout 2025, prompting developers to reevaluate project timelines and scale. Persistent cost pressures have, in some cases, dampened enthusiasm for new projects outside of those sectors that promise strong return on investment, such as technology infrastructure and healthcare facilities. This dynamic was also highlighted in other recent industry reporting, which points to rising input prices and broader economic uncertainty as constraints on planning activity.

What Does This Means Going Forward?

Overall, the November DMI paints a nuanced picture: short-term planning momentum eased slightly, but longer-term fundamentals remain in solid shape thanks mainly to strong data center and health care project pipelines. Forecasting from Dodge suggests that nonresidential construction spending could strengthen into 2027, led predominantly by those same sectors. Developers and contractors watching these trends are likely to keep a close eye on the pace of project planning over the coming months to gauge whether this momentum translates into a sustained increase in actual groundbreakings and jobsite activity.

For construction professionals, investors and policymakers alike, one clear takeaway emerges: not all segments of the industry are created equal. While traditional commercial and institutional planning shows patches of softness amid broader economic headwinds, the data center boom continues to drive substantial investment, shaping the nonresidential construction outlook for the near future.