We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Data Centers Becoming the Core Growth Engine for Quanta?
Read MoreHide Full Article
Key Takeaways
Quanta sees data centers emerging as a key growth pillar amid rising AI-driven power demand.
PWR's Electric Infrastructure unit drives growth, backed by grid upgrades and hyperscaler demand.
Record backlog of about $44 billion and acquisitions boost execution capacity and long-term visibility.
Quanta Services, Inc. (PWR - Free Report) is increasingly positioning data centers as a central pillar of its long-term growth strategy, driven by surging AI-related power demand and expanding utility investments. It delivered strong 2025 results, with revenues reaching $28.5 billion and backed by a record backlog of nearly $44 billion, reflecting robust demand across its core end markets.
Notably, PWR’s Electric Infrastructure Solutions segment, accounting for more than 80% of total revenues, continues to benefit from accelerating investments in grid modernization and large-load infrastructure like data centers. Data centers are emerging as a key catalyst within this growth framework. The rapid expansion of AI workloads is driving unprecedented electricity demand, requiring large-scale upgrades to transmission, substations, and load-center infrastructure. Besides, Quanta’s integrated capabilities, from engineering and construction to maintenance, enable it to capture value across the entire power delivery chain, making it a preferred partner for hyperscalers and utilities alike.
Strategic acquisitions, including Tri-City and Wilson, further enhance Quanta’s ability to execute complex projects tied to load centers and high-voltage transmission—both critical components of data center ecosystems. These investments expand its skilled labor base and strengthen its competitive positioning in a capacity-constrained market.
Looking ahead, PWR expects 2026 revenues between $33.25 billion and $33.75 billion, signaling continued double-digit growth year over year. While execution risks such as permitting delays and supply-chain challenges persist, Quanta’s scale, backlog visibility and exposure to AI-driven infrastructure trends suggest that data centers are fast becoming a core engine of its sustained growth.
Does Quanta Drive Data Boom as Competition Looms?
Quanta is benefiting from the rapid rise in data center construction alongside market peers like AECOM (ACM - Free Report) and Fluor Corporation (FLR - Free Report) , but their exposure and competitive positioning differ significantly across the value chain.
AECOM is focusing on design, engineering and program management for large-scale infrastructure, including data center ecosystems. It benefits from global infrastructure spending and digital transformation trends, but its asset-light, advisory-driven model limits direct exposure to construction upside while supporting higher-margin, lower-risk growth. On the other hand, Fluor is positioned as an EPC contractor capturing large-scale data center builds globally. The company sees data centers as a major growth opportunity, driven by AI and cloud expansion, with rising project pipelines across the US and international markets. However, its exposure remains project-based and tied to cyclical capital spending.
Overall, PWR leads in power-driven monetization of AI demand, Fluor captures construction upside from hyperscale builds and AECOM benefits through advisory roles, highlighting complementary yet distinct approaches to the evolving data center market.
PWR Stock’s Price Performance & Valuation Trend
PWR stock has climbed 24.8% in the past three months, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 40.86, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWR
PWR’s earnings estimates for 2026 and 2027 have trended upward in the past 60 days. The estimates for 2026 and 2027 imply year-over-year growth of 19.4% and 18.5%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Are Data Centers Becoming the Core Growth Engine for Quanta?
Key Takeaways
Quanta Services, Inc. (PWR - Free Report) is increasingly positioning data centers as a central pillar of its long-term growth strategy, driven by surging AI-related power demand and expanding utility investments. It delivered strong 2025 results, with revenues reaching $28.5 billion and backed by a record backlog of nearly $44 billion, reflecting robust demand across its core end markets.
Notably, PWR’s Electric Infrastructure Solutions segment, accounting for more than 80% of total revenues, continues to benefit from accelerating investments in grid modernization and large-load infrastructure like data centers. Data centers are emerging as a key catalyst within this growth framework. The rapid expansion of AI workloads is driving unprecedented electricity demand, requiring large-scale upgrades to transmission, substations, and load-center infrastructure. Besides, Quanta’s integrated capabilities, from engineering and construction to maintenance, enable it to capture value across the entire power delivery chain, making it a preferred partner for hyperscalers and utilities alike.
Strategic acquisitions, including Tri-City and Wilson, further enhance Quanta’s ability to execute complex projects tied to load centers and high-voltage transmission—both critical components of data center ecosystems. These investments expand its skilled labor base and strengthen its competitive positioning in a capacity-constrained market.
Looking ahead, PWR expects 2026 revenues between $33.25 billion and $33.75 billion, signaling continued double-digit growth year over year. While execution risks such as permitting delays and supply-chain challenges persist, Quanta’s scale, backlog visibility and exposure to AI-driven infrastructure trends suggest that data centers are fast becoming a core engine of its sustained growth.
Does Quanta Drive Data Boom as Competition Looms?
Quanta is benefiting from the rapid rise in data center construction alongside market peers like AECOM (ACM - Free Report) and Fluor Corporation (FLR - Free Report) , but their exposure and competitive positioning differ significantly across the value chain.
AECOM is focusing on design, engineering and program management for large-scale infrastructure, including data center ecosystems. It benefits from global infrastructure spending and digital transformation trends, but its asset-light, advisory-driven model limits direct exposure to construction upside while supporting higher-margin, lower-risk growth. On the other hand, Fluor is positioned as an EPC contractor capturing large-scale data center builds globally. The company sees data centers as a major growth opportunity, driven by AI and cloud expansion, with rising project pipelines across the US and international markets. However, its exposure remains project-based and tied to cyclical capital spending.
Overall, PWR leads in power-driven monetization of AI demand, Fluor captures construction upside from hyperscale builds and AECOM benefits through advisory roles, highlighting complementary yet distinct approaches to the evolving data center market.
PWR Stock’s Price Performance & Valuation Trend
PWR stock has climbed 24.8% in the past three months, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 40.86, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWR
PWR’s earnings estimates for 2026 and 2027 have trended upward in the past 60 days. The estimates for 2026 and 2027 imply year-over-year growth of 19.4% and 18.5%, respectively.
Image Source: Zacks Investment Research
Quanta stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.