Why Data Centers and Power Infrastructure Are Driving Construction M&A in 2026

Data centers and power infrastructure have moved from specialized construction niches to strategic priorities for the broader economy. Artificial intelligence, cloud computing, electrified manufacturing, electric vehicles, and other power-intensive technologies are creating demand for new facilities: and for the electrical systems capable of supporting them.

That demand is reshaping construction M&A in 2026. Buyers are no longer evaluating contractors only by revenue, backlog, or geographic footprint. They are looking for scarce capabilities that are difficult to build organically: high-voltage electrical work, advanced cooling, commissioning, fire suppression, grid modernization, and experienced field teams.

For construction business owners, this shift creates both opportunity and risk. If your company has the technical depth and operating discipline required by mission-critical projects, you may attract significant acquisition interest. If your business depends on speculative backlog, a few customers, or one key executive, the same market may expose material weaknesses.

The central question is not whether data centers are receiving attention. It is whether your company is positioned to create durable value after the attention moves elsewhere.

Why AI Is Creating a Construction Demand Shock

Artificial intelligence requires substantial computing capacity. That capacity requires data centers, and data centers require reliable power, cooling, connectivity, and specialized construction expertise.

According to PwC’s 2026 engineering and construction outlook, global data center capacity is projected to nearly triple by 2031, adding approximately 75 gigawatts of incremental load. That projected growth is increasing demand for:

• Electrical infrastructure and distribution

• Precision cooling and mechanical systems

• Fire suppression and life-safety systems

• Grid interconnection and power delivery

• Commissioning and testing

• Civil, structural, and site development work

This demand is also occurring while many conventional construction markets face elevated interest rates, labor shortages, tariff uncertainty, and material-cost volatility.

That distinction matters. If a contractor serves a market supported by long-term technology investment and infrastructure spending, then its backlog may be more durable than a contractor dependent primarily on discretionary commercial development.

Power Availability Is Now a Strategic Asset

Data center development depends on more than land and building permits. It depends on the availability of reliable power.

Many regions do not have sufficient generation, transmission, or distribution capacity to support the expected growth in AI-related electricity demand. As a result, developers and technology companies are seeking sites with committed power, faster interconnection potential, and access to generation assets.

PwC’s power and utilities outlook describes a growing convergence between the technology and power sectors. Hyperscalers and other large technology companies are increasingly exploring direct ownership, partnerships, and acquisitions involving power generation and infrastructure.

The implications extend beyond utility companies. Every new generation project, substation, transmission upgrade, and behind-the-meter system requires engineers, contractors, equipment installers, and maintenance providers.

Power availability is therefore becoming a construction opportunity.

If your company can help customers secure, distribute, or manage power, then you may occupy a strategically important position in the development chain. If your company only performs general work without specialized technical differentiation, you may face more competition and less pricing power.

Why Specialty Contractors Are Attractive Acquisition Targets

The construction market is fragmented. Many specialty contractors have strong customer relationships, skilled employees, and deep technical knowledge, but lack the capital or management infrastructure to pursue larger opportunities.

That makes them attractive targets for a well-capitalized buyer.

Capstone Partners reported that construction services M&A activity expanded for the third consecutive year in 2025. The firm identified data center and power infrastructure exposure as a major driver of acquisition interest entering 2026.

The most sought-after targets generally share several characteristics.

1. Mission-critical technical capabilities

Buyers are prioritizing companies that perform work where failure is costly and project requirements are difficult to replicate. Examples include:

• High-voltage electrical contracting

• Medium-voltage distribution

• Data center mechanical systems

• Advanced HVAC and liquid-cooling installation

• Fire protection and suppression

• Commissioning and testing

• Utility and grid modernization

• Industrial controls and automation

These capabilities can support stronger customer retention because clients often prefer proven specialists for complex, high-consequence work.

2. Demonstrated backlog quality

Revenue alone does not establish business quality. Buyers want to understand the source, timing, and profitability of that revenue.

A strong target can show:

• Contracted backlog rather than speculative pipeline

• Repeat work with established customers

• Clear change-order and escalation provisions

• Predictable project schedules

• Diversification across customers and geographies

• Historical evidence of profitable execution

If your company has a large backlog but routinely experiences margin erosion, then the backlog may not create the value you expect. If the backlog is supported by strong contract controls and capable project management, it becomes a strategic asset.

3. Skilled labor and leadership depth

The labor shortage is not a temporary inconvenience. It is a central factor in construction valuations.

A buyer may be acquiring your field supervisors, estimators, project managers, licenses, certifications, and training systems as much as your customer list. Capstone’s research noted that more than 80% of surveyed contractors reported difficulty hiring for craft and salaried positions in 2025.

This creates a practical test:

• If your company’s performance depends entirely on the owner, then a buyer may view transition risk as high.

• If your company has a capable second layer of leadership, documented processes, and a reliable workforce pipeline, then the business is more transferable.

Transferability is one of the foundations of a successful business acquisition.

How Buyers Are Evaluating Construction M&A Opportunities

The current market rewards strategic fit, not just growth claims. Buyers are examining whether a contractor can contribute to a broader platform.

A disciplined M&A advisory process should evaluate five areas.

End-market exposure

Determine how much revenue is directly connected to data centers, utilities, grid modernization, industrial electrification, or other durable infrastructure markets.

Do not rely solely on customer descriptions. Review actual project scopes, contract types, locations, and end users.

Margin durability

A specialty contractor serving a high-growth market may still be vulnerable if it underbids work, lacks purchasing controls, or cannot manage labor costs.

Review margins by project, customer, service line, and geography. Look for patterns rather than isolated strong quarters.

Operational scalability

Ask whether the company can grow without compromising safety, quality, schedule, or cash flow.

Important indicators include:

• Standardized estimating procedures

• Project-management systems

• Safety performance

• Workforce training

• Procurement controls

• Working-capital discipline

• Technology adoption

Customer concentration

Data center work can involve large contracts with a limited number of customers. That concentration may be acceptable when relationships are durable and contracts are well structured, but it must be understood.

If one customer represents a substantial share of revenue, then the valuation should reflect renewal, project timing, and relationship risk.

Strategic adjacency

The strongest acquisition targets may offer more than one capability. An electrical contractor with commissioning expertise, maintenance services, or utility relationships may be more valuable than a contractor with a single narrow offering.

Strategic adjacency allows a buyer to expand services for existing customers while reducing dependence on one project type.

The Difference Between a Patient Buyer and a Flipper

Strong market demand can attract opportunistic capital. Some buyers seek to acquire a contractor, reduce costs, increase leverage, and resell the business within a short period.

That approach is not appropriate for every owner or company.

A permanent-ownership buyer evaluates a construction business differently. The objective is not simply to purchase current earnings. It is to protect the company’s reputation, strengthen its operations, and build a durable platform for future growth.

At Brothers Keeper Holdings LLC, we approach acquisitions with a keeper mindset. We focus on:

• Long-term ownership

• Hands-on operational improvement

• Disciplined capital allocation

• Risk management

• Founder-led governance

• Workforce and customer continuity

• Sustainable, multi-sector growth

Our perspective is informed by the broader portfolio, including strategic M&A advisory and experience evaluating businesses for long-term value creation.

That does not mean every opportunity is a fit. It means the right opportunity should be evaluated with patience, transparency, and respect for what the founder has built.

What Construction Business Owners Should Do in 2026

If you own a specialty contractor, you do not need to pursue a sale immediately to benefit from current M&A conditions. You should, however, operate as though strategic buyers will eventually review your business.

Start with these actions:

The best time to prepare a business for a potential transaction is before you need to sell. Preparation gives you more choices, stronger negotiating leverage, and greater control over your company’s future.

The Long-Term Opportunity

Data centers and power infrastructure are driving construction M&A because they have exposed a fundamental constraint: digital growth cannot continue without physical infrastructure.

The contractors best positioned for this environment will combine technical specialization, disciplined execution, skilled labor, reliable backlog, and adaptable leadership. Buyers will continue to pursue these capabilities because building them internally takes time: and time is increasingly scarce.

For owners, the opportunity is not limited to achieving a higher valuation. The more important opportunity may be finding a partner that can preserve your legacy while providing the capital, systems, and strategic support required for the next stage.

At Brothers Keeper Holdings, we believe enduring businesses should be stewarded, not flipped. If you are considering a partnership, succession plan, or business acquisition, explore our company website or review our guidance on selling a construction business in 2026.

Build what lasts. Keep what matters. Own the future.