Shovels hit dirt on a $1.5 billion data center site in Ohio and a $1 billion multifamily complex in Florida, the latest in a series of billion-dollar projects to start construction across the country.
QTS Data Centers, a subsidiary of investment management company Blackstone, announced the data center project located in New Albany, Ohio, last year amid the resurgence of U.S. manufacturing construction. Other tech giants, such as Amazon and Google, also picked lots in New Albany to build massive data center facilities.
Meanwhile, Sunny Isles Beach, Florida-based Dezer Development also broke ground on what is set to be the tallest U.S. oceanfront building. The 63-story Bentley Residences will feature 216 units and a slew of amenities, such as a car elevator, according to the project fact sheet.
But despite these projects moving forward, total groundbreakings tumbled to kick off summer after showing strong momentum in the spring, according to Dodge Construction Network.
Total construction starts plummeted 19% in June to a seasonally adjusted annual rate of $1 trillion, according to the report. The drop ends a two-month growth streak, which included the largest monthly increase of the year, said Richard Branch, chief economist for Dodge Construction Network.
Much of that decline was due to a stark drop in utility and gas projects, said Branch. Nonbuilding starts, which include utility and gas as well as highway, street and bridge projects, decreased 46% in June, following a 49% gain in May.
The construction market remains sluggish as high interest rates continue to reverberate through the sector, said Branch.
However, the Dodge Momentum Index, which tracks nonresidential building projects entering the planning phase, has been steady over the last year. That suggests owners and developers remain cautiously optimistic about future construction conditions, he added.
“Moribund starts activity means that these projects are piling up like water behind a dam,” said Branch. “Lower rates in 2024 will allow these projects to start flowing again, resulting in a quicker pace of activity towards year-end.”
Here are the top nine U.S. projects to break ground in June:
- The $1.5 billion QTS Albany data centers in New Albany, Ohio.
- The $1 billion Bentley Residences in Sunny Isles Beach, Florida.
- The $600 million Cipriani Residences in Miami.
- The $550 million First Solar manufacturing plant in New Iberia, Louisiana.
- The $520 million TGH Taneja Tower surgical building in Tampa, Florida.
- The $510 million Airo Ivy City Yard rail improvements in Washington, D.C.
- The $434 million Marketplace apartments in Irvine, California.
- The $400 million Cadillac El Dorado solar facility in Callahan County, Texas.
- The $400 million replacement of the Belmont Park racing facility in Elmont, New York.
Year-to-date growth
Through the first half of the year, total construction starts remain up 7%, according to Dodge.
Nonresidential starts, which include retail, office and warehouse projects, ticked up 1%, while groundbreakings in residential and nonbuilding increased 14% and 8%, respectively.
Nonresidential building starts tumbled 13% in June compared to a month earlier, predominantly due to a 34% slide in manufacturing starts, according to the report. Institutional projects, such as healthcare, also fell 19% in June. Year-to-date institutional starts remain up 11% compared to the same point in 2024.
Nonbuilding construction dropped 46% in June. The drop follows a large increase in May due to both an $11 billion LNG plant in Texas and a $10 billion offshore wind project off Virginia Beach, Virginia, according to Dodge.
Residential starts increased 9% in June, according to the report. Multifamily starts jumped 23%, while single-family groundbreakings increased 4% during the month. Year to date, total residential starts gained 14%.
