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Is Construction Partners Gaining From America's Data Center Explosion?
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Key Takeaways
Construction Partners highlights Texas and Alabama data center projects tied to AI infrastructure growth.
ROAD reported a record $3.14B backlog, with 80-85% of the next 12 months' revenue secured.
Construction Partners sees commercial demand rising alongside strong public infrastructure spending.
Construction Partners, Inc. (ROAD - Free Report) is increasingly emerging as an indirect beneficiary of America’s booming data center expansion, as hyperscale technology investments fuel demand for road, paving and site development work across the Sunbelt.
The company highlighted several data center-related projects during its fiscal second-quarter 2026 earnings call, underscoring how AI-driven infrastructure growth is becoming a meaningful tailwind. In Texas, Four Star Paving is currently involved in a portfolio of eight data center projects valued at nearly $100 million. Meanwhile, Wiregrass Construction in Alabama is participating in a Mag 7 data center project, signaling growing exposure to large-scale technology infrastructure development.
Management emphasized that data center opportunities are steadily becoming a larger part of its commercial project mix as developers expand aggressively across high-growth Sunbelt markets. The ongoing reindustrialization trend, coupled with rising AI computing demand, continues driving investments in manufacturing hubs, warehouses and digital infrastructure facilities in states where Construction Partners operates. Importantly, ROAD’s strong local-market presence and decentralized operating model position it well to capture recurring commercial opportunities tied to these developments. At the same time, public infrastructure spending remains healthy, creating a favorable dual-demand environment.
Construction Partners is also benefiting from a record $3.14 billion backlog, supported by both public and private-sector projects. Management noted that approximately 80-85% of the next 12 months’ expected revenues are already secured in backlog, providing strong visibility. While roadway maintenance remains its core business, the accelerating data center boom is clearly opening a promising new growth avenue for Construction Partners.
Construction Partners vs. Primoris vs. Quanta: Who Taps on the Megatrends?
Riding the meaningful market tailwinds surrounding data center demand growth, Construction Partners faces notable competition from key market players like Primoris Services Corporation (PRIM - Free Report) and Quanta Services, Inc. (PWR - Free Report) .
Primoris Services capitalizes on the rising demand for power, utilities and renewable infrastructure linked to data centers and industrial expansion. PRIM’s engineering and specialty contracting expertise position it well to benefit from grid modernization, energy transition projects and large industrial construction opportunities emerging from AI-related electricity demand growth.
Meanwhile, Quanta remains one of the strongest beneficiaries of AI infrastructure spending, as hyperscale data centers require massive transmission, substation and power-grid investments. Quanta’s record backlog reflects surging utility spending, electrification trends and long-term demand for resilient energy infrastructure. Together, all three companies are benefiting from the intersection of AI growth, reindustrialization and expanding U.S. infrastructure investment cycles.
ROAD Stock’s Price Performance & Valuation Trend
Shares of this Alabama-based civil infrastructure company have gained 7.2% year to date, outperforming the Zacks Building Products - Miscellaneous industry, but underperforming the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 33.66, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of ROAD
ROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have trended upward in the past 30 days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Is Construction Partners Gaining From America's Data Center Explosion?
Key Takeaways
Construction Partners, Inc. (ROAD - Free Report) is increasingly emerging as an indirect beneficiary of America’s booming data center expansion, as hyperscale technology investments fuel demand for road, paving and site development work across the Sunbelt.
The company highlighted several data center-related projects during its fiscal second-quarter 2026 earnings call, underscoring how AI-driven infrastructure growth is becoming a meaningful tailwind. In Texas, Four Star Paving is currently involved in a portfolio of eight data center projects valued at nearly $100 million. Meanwhile, Wiregrass Construction in Alabama is participating in a Mag 7 data center project, signaling growing exposure to large-scale technology infrastructure development.
Management emphasized that data center opportunities are steadily becoming a larger part of its commercial project mix as developers expand aggressively across high-growth Sunbelt markets. The ongoing reindustrialization trend, coupled with rising AI computing demand, continues driving investments in manufacturing hubs, warehouses and digital infrastructure facilities in states where Construction Partners operates. Importantly, ROAD’s strong local-market presence and decentralized operating model position it well to capture recurring commercial opportunities tied to these developments. At the same time, public infrastructure spending remains healthy, creating a favorable dual-demand environment.
Construction Partners is also benefiting from a record $3.14 billion backlog, supported by both public and private-sector projects. Management noted that approximately 80-85% of the next 12 months’ expected revenues are already secured in backlog, providing strong visibility. While roadway maintenance remains its core business, the accelerating data center boom is clearly opening a promising new growth avenue for Construction Partners.
Construction Partners vs. Primoris vs. Quanta: Who Taps on the Megatrends?
Riding the meaningful market tailwinds surrounding data center demand growth, Construction Partners faces notable competition from key market players like Primoris Services Corporation (PRIM - Free Report) and Quanta Services, Inc. (PWR - Free Report) .
Primoris Services capitalizes on the rising demand for power, utilities and renewable infrastructure linked to data centers and industrial expansion. PRIM’s engineering and specialty contracting expertise position it well to benefit from grid modernization, energy transition projects and large industrial construction opportunities emerging from AI-related electricity demand growth.
Meanwhile, Quanta remains one of the strongest beneficiaries of AI infrastructure spending, as hyperscale data centers require massive transmission, substation and power-grid investments. Quanta’s record backlog reflects surging utility spending, electrification trends and long-term demand for resilient energy infrastructure. Together, all three companies are benefiting from the intersection of AI growth, reindustrialization and expanding U.S. infrastructure investment cycles.
ROAD Stock’s Price Performance & Valuation Trend
Shares of this Alabama-based civil infrastructure company have gained 7.2% year to date, outperforming the Zacks Building Products - Miscellaneous industry, but underperforming the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 33.66, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of ROAD
ROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have trended upward in the past 30 days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.