The latest Dodge Momentum Index (DMI) report indicates a sizable increase of 5.7% to a total of 183.2 for September, up from the revised 173.4 figure that was recorded in August. 

The Dodge Construction Network notes that this total falls within 5% of the DMI’s all-time high and was propelled by an 11.7% gain in institutional construction and further increase in the commercial component, which rose by 2.9% bolstered primarily by a sharp rise in the number of data center projects inaugurated in every region. A year-to-year increase of 26% was also recorded over last September’s totals, with 25% and 28% increases recorded in the commercial and institutional components respectively when compared to last year.

Exactly 39 projects with values of $100 million or more were recorded, with a pair of $500 million commercial projects in Virginia and Upstate New York topping the list followed by a $311 million casino in Idaho and another $300 million laboratory project in the Boston suburbs. 

“The gain in the Momentum Index and its components in September reassures us that despite whispers of recession, owners and developers are still looking to move forward with projects to meet demand,” David Reaves, a senior economist for the Dodge Construction Network, said in a statement. “Certain subsectors have shown resilience since the pandemic’s onset, such as data center projects, and continue to stream into the planning pipeline. However, looming challenges still remain for the sector, including supply shortages and the rising cost of materials that could chip away at the flow of new projects if inflation is not tempered.”

The Network also shares that data centers in Florida were particularly affected by the impact of Hurricane Ian, which has caused fears of labor disruptions in the construction industry while providing a litmus test for the necessity of more resilient structures to be delivered across the state overall.