Electrical Contractors NAICS 238210

Apr 13, 2026 - Dodge Momentum Index Rises

• The Dodge Momentum Index (DMI) increased 1.8% in March 2026 to 250.5 (2000=100), up from the revised March reading of 246.2. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 7%, but institutional declined by 8.8%. Dodge’s associate director of forecasting, Sarah Martin, said, "Planning momentum in March was powered almost entirely by data center projects, with most other sectors easing back,” said Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “For some categories, this reflects a natural reset after the outsized growth in late 2025. But for others, elevated macroeconomic risks are likely beginning to feed into planning decisions."
• North American construction and engineering spending is expected to remain flat in 2026 after declining by 1% in 2025, according to FMI’s second-quarter 2026 North American Engineering and Construction Outlook. Within building segments, office construction is projected to grow 6% in 2026, driven by strong data center demand, while health care (+2%) also expands amid large hospital projects. Education and amusement and recreation are expected to remain stable but notch flat spending growth in 2026. Several segments will decline, including lodging (-4%), commercial (-6%) and public safety (-2%), reflecting financing constraints and uneven demand, while manufacturing construction is also projected to fall (-2%) following a surge in prior years. Residential building activity continues to weaken, with single-family construction forecast to drop 2% due to affordability pressures and elevated mortgage rates. Multifamily spending is projected to be down 1% as high supply levels weigh on rent growth and new development.

• The rapid growth of artificial intelligence is fueling a data-center construction boom, which increasingly crowds out other types of land development, according to The Wall Street Journal. The trend is reshaping construction markets and increasing demand for specialized electrical work as data center developers outbid housing builders for land across several US regions. In Northern Virginia, data centers accounted for 20% to 30% of land development between 2013 and 2021, with activity from 2022 to 2024 rising 50% above the previous nine years combined. Tech companies are paying record prices for land, including a $700 million purchase by Amazon for property originally acquired for about $50 million. For the electrical contractor industry, the surge in data center construction is driving strong demand for large-scale power systems, cabling, and electrical infrastructure. Developers say a single facility can require more wiring than entire housing developments, intensifying competition for electricians and shifting construction activity toward energy-intensive commercial projects.
• Rising US demand for electricity will mostly be driven by increases in utility-scale solar generation, according to the US Energy Information Administration (EIA). Solar generation is forecast to increase 17% in 2026 and another 23% in 2027. Much of the growth will be in Texas, as the amount of solar electricity supplied to the grid by the Electric Reliability Council of Texas (ERCOT) is expected to increase from 56 billion kilowatt-hours (BkWh) in 2025 to 106 BkWh in 2027. Total US utility-scale solar generation is forecast to rise from 290 BkWh in 2025 to 424 BkWh by 2027. Solar's share of total US electricity generation capacity is forecast to rise from 7% in 2025 to 8% in 2026 and 9% in 2027.