Hotels, Data Centers Drive Up Dodge Construction Index

Sandston, Va., is pretty hard for most to locate on a map, but for data center developers, it’s quite the spot.

A bit east of Richmond on I-64, it was home to the largest of 21 projects with a value of $100 million or more that entered planning in November. In this case, part of a pair of $500 million segments of a Facebook data center.

It was also one of the projects monitored by the Dodge Momentum Index (DMI), issued by Dodge Construction Network.

The index increased 3.8% (2000=100) in November to 207.2 from the revised October reading of 199.6. During the month, the DMI commercial component rose 4.3%, and the institutional component ticked up 2.7%.

Government Admin Buildings and Religious Facilities Also See Boost

Hotel projects also rose – thanks to casino construction in Joliet, Ill., while education and healthcare projects slowed in November and the institutional component remained net-positive alongside a “robust” increase in planning projects for government administrative buildings and religious facilities.

The DMI was 25% higher than in November 2021, the commercial component was up 28%, and institutional planning was 21% higher.

“The Momentum Index continued to rise in November, conveying hopefulness from owners and developers that the construction sector will endure the possible economic slowdown next year,” said

Sarah Martin, senior economist for Dodge Construction Network, said in prepared remarks that labor and supply shortages, high material costs and high interest rates could temper planning activity over the next 12 months to a more modest pace.