Megaproject Momentum Cools in August as Year-To-Date Growth Remains Strong

KEY POINTS

• August nonresidential construction starts fell in August, marking the lowest level since early 2025 following summer’s record-breaking months.

• Megaproject activity slowed in August; however, year-to-date totals remain well above 2024 levels. 

• Commercial megaproject starts reached $38.2 billion year-to-date in 2025, a 241% increase from the prior year. 

ConstructConnect announced last week that total nonresidential construction starts dropped to $57.7 billion in August 2025, down 24% from July’s revised figure. This brings construction spending to its lowest monthly level since February. 

But year-to-date megaproject performance remains substantially above prior year levels.

August Megaproject Activity Declines 

Megaproject activity decreased in August, with two megaprojects valued at a combined $12.1 billion breaking ground. This represents a 52% month-on-month decline from July’s starts spending levels. 

However, year-to-date megaproject performance remains substantially above prior year levels.  Megaprojects are those that have a cost of $1 billion and up. August’s additions bring the total to $127.7 billion, representing a 53% increase over the comparable $83.5 billion recorded through August 2024. 

For the second consecutive month, megaprojects maintained an above 20% market share of total nonresidential construction starts on a 12-month moving average basis. July marked only the second time this threshold was exceeded, establishing a benchmark for megaproject influence on the nonresidential construction market. 

For the second consecutive month, megaprojects maintained an above 20% market share of total nonresidential construction starts on a 12-month moving average basis, as shown in this graph. Image: ConstructConnect. Data by ConstructConnect Project Intelligence

Commercial and Industrial Sectors Account for Majority of Megaproject Growth 

Commercial and industrial megaproject growth has almost entirely powered the year-to-date rise in total starts spending.  

Commercial megaproject starts reached $38.2 billion year-to-date in 2025, a 241% increase from the prior year. This growth stems from demand for data center construction and commercial real estate developments. 

Year-to-date megaproject performance remains substantially above prior year levels, as shown in this chart. August’s additions bring the total to $127.7 billion, representing a 53% increase over the comparable $83.5 billion recorded through August 2024. Image: ConstructConnect

Industrial megaprojects reached nearly $50 billion in year-to-date starts, representing a 74% increase over the comparable 2024 period. Notable projects include the $25 billion Taiwan Semiconductor Manufacturing Company fabrication facility in Arizona, which accounts for half of the sector’s activity so far this year. 

Market Outlook and Industry Implications 

The August 2025 megaproject construction starts of $12.1 billion has an above-20% market share of total nonresidential activity. This market concentration represents a shift from historical norms, where megaprojects typically accounted for substantially lower shares of total nonresidential activity.   

The megaproject market may create opportunities based on firm capacity and capabilities. Companies with adequate resources could benefit from substantial project scale and value. Construction professionals can track megaproject development to best position themselves within the industry.