Strength in institutional construction planning in August was largely offset by softer commercial activity over the month, causing overall growth in construction project planning to be relatively flat, according to Dodge Construction Network, Boston.

The analytic firm’s Dodge Momentum Index (DMI) in August was essentially unchanged, falling 0.4% to 282 from the downwardly revised July reading of 283 (2000=100). Over the month, institutional planning grew 4.9% while commercial planning declined 3%.

Commercial planning activity slowed down for data centers, retail stores and warehouses throughout August, while office buildings, parking garages and hotels picked up steam.

“Within the commercial sector, office and hotel planning have generally trended upward since March, rebounding from sharp declines earlier in the year,” said Sarah Martin, director of economic research at Dodge Construction Network. “However, excluding data centers, the commercial component of the DMI was down 18.9% from year-ago levels, reflecting the exceptionally strong pipeline activity recorded in late 2025.”

On the institutional side, education, recreation and public buildings saw a stronger planning pipeline, while healthcare activity slightly pulled back after four months of sustained planning growth.

“Education planning has also stabilized in recent months,” Martin said. “While weaker enrollment trends, tighter state and local budgets, and an uncertain policy environment continue to restrain education construction starts in the near term, spending activity could begin to improve by mid-to-late 2027.”

A total of 31 projects valued at $100 million or more entered planning throughout August. The largest commercial projects included two EdgeConneX Data Centers (Buildings 31 and 32) in Bastrop, Texas, each valued at $462 million; the $378 million Bitdeer Data Center (Phase 1, 150 megawatts) in Shalersville Township, Ohio; and a $358 million Data Center in Secaucus, N.J.

The largest institutional projects to enter planning included the $350 million Colosseum Sports Resort in Stafford, Va.; the $350 million Commonwealth Courts Building in Richmond, Va.; and the $350 million Holistic Health and Fitness building in Newport News, Va.

Overall construction planning in August was 4.2% higher than a year earlier.

“More broadly, project delays and ongoing macroeconomic uncertainty are likely to slow the pace at which planning-stage projects move into construction,” Martin said. “Even so, the outlook for nonresidential construction spending becomes more favorable in 2027 and 2028 as conditions gradually improve.”

The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.