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Dodge Momentum Slows, But Remains Strong

Oct. 12, 2024
With the data center surge peaking, DMI retreated. But interest rate cuts now seem sure to restart activity.

PRESS RELEASE

BEDFORD, MA – October 7, 2024  The Dodge Momentum Index (DMI), issued by Dodge Construction Network, decreased 4.2% in September to 208.6 (2000=100) from the revised August reading of 217.7. Over the month, commercial planning contracted 7.8% and institutional planning improved 5.2%.  

“Despite this month’s decline, the Dodge Momentum Index remains at very robust levels,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “A surge in data center activity drove much of the recent rapid growth in the DMI – so as planning for that sector moderated over the month, overall commercial planning fell back. By mid-2025, the Fed’s rate cuts should spur planning projects to reach groundbreaking more quickly – leading to stronger nonresidential activity as 2025 progresses.” 

Commercial planning generally receded over the month. After gaining some steam in recent months, warehouse, office and stores planning activity all slowed down. Hotels, on the other hand, have been gaining speed over the past five months, expanding steadily in September. Data centers continued to dominate large project activity, but the rate at which planning projects entered the queue continued to moderate from the above-average levels of growth in recent months.

On the institutional side, education, healthcare and recreational projects were the primary drivers of this past month’s expansion, with only religious planning posting a decline. This month, the DMI was 21% higher than in September of 2023. The commercial segment was up 31% from year-ago levels, while the institutional segment was up 4% over the same period.  

 A total of 28 projects valued at $100 million or more entered planning throughout September. The largest commercial projects included the $390 million Project Nova Data Center in Eagan, Minnesota and Phase 1 and 2 of the SNA Data Center in Cedar Rapids, Iowa – valued at $375 million per phase. The largest institutional projects to enter planning were the $300 million Kairos Power R&D lab facility and the $215 million phase 2 of the Kentucky Exposition Center redevelopment in Louisville, Kentucky.  

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. 

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About Dodge Construction Network
Dodge Construction Network harnesses data, analytics, and industry connections to be the leading source of insights and opportunities in the commercial construction industry. With five trusted solutions Dodge Construction Central, The Blue Book, Sweets, IMS, and Principia Dodge connects construction professionals across all stages of the building process. Designed for both small teams and large enterprises, these tools simplify complexity, empowering you to build thriving businesses and communities. With over a century of experience, Dodge Construction Network is the catalyst for modern construction. To learn more, visit construction.com. For more, contact: [email protected].