Quanta Services, Inc. PWR is positioning itself to capitalize on one of the fastest-growing infrastructure opportunities: the rapid expansion of AI-driven data centers and advanced manufacturing facilities. While the company has historically been known for its utility and energy infrastructure business, management now expects technology-related revenues to more than double over the next several years, highlighting data center infrastructure as an increasingly important long-term growth driver.
Quanta projected that revenues from technology-related end markets would grow by more than 110% between 2025 and 2030. The company believes accelerating investments in hyperscale data centers, AI infrastructure, semiconductor manufacturing and other large-load facilities will create a significant new avenue for growth alongside its traditional utility business.
To support this massive influx of demand, particularly from data center customers, Quanta has launched aggressive vertical supply chain initiatives. This includes an investment of $500 million to $700 million to double its power transformer manufacturing capacity and plans to nearly double its off-site manufacturing, fabrication and logistics facilities to approximately 6.7 million square feet.
PWR's technology ambitions are supported by a record project backlog. At the end of the first quarter of 2026, total backlog reached $48.5 billion, while remaining performance obligations increased to $26.2 billion, providing significant revenue visibility across future periods. The Electric Infrastructure Solutions segment accounted for more than $40 billion of backlog, underscoring continued customer demand across transmission, grid modernization and large-load infrastructure projects.
Quanta's record backlog, higher 2026 guidance and expectation for more than 110% growth in technology-related revenues through 2030 indicate that management views this market as becoming an increasingly important contributor to future growth. Although project timing remains subject to permitting, supply chain, regulatory and macroeconomic risks, the combination of expanding AI infrastructure investment and ongoing grid modernization provides a favorable backdrop for sustained long-term expansion.
Peers Also Capitalizing on AI Infrastructure Demand
Quanta is not alone in benefiting from the rapid buildout of AI infrastructure and data centers. Industry peers such as MasTec, Inc. MTZ and Comfort Systems USA, Inc. FIX are also expanding their capabilities to capture growing investment across mission-critical infrastructure, power delivery and data center construction.
MasTec continues to see AI and data centers as a major long-term growth driver across multiple business segments. Management highlighted accelerating demand for data center interconnectivity, power infrastructure and turnkey data center construction while noting that its recent turnkey data center project is progressing well. The company believes its integrated capabilities across civil construction, power, telecommunications and maintenance position it to significantly expand this business as customers increasingly seek full-service infrastructure partners.
Comfort Systems is also benefiting from sustained investment in advanced technology projects. During the first quarter of 2026, advanced technology, led primarily by data center work, accounted for 56% of revenues and remained the company's largest source of backlog growth. To support rising demand, Comfort Systems continues to expand its modular manufacturing capacity, targeting 4 million square feet by the end of 2026 while investing in automation and electrical capabilities to serve large-scale technology customers.
PWR’s Price Performance, Valuation & Estimates
PWR stock has rallied 57.8% in the year-to-date (YTD) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
PWR YTD Share Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 47.37X, well above the industry’s 29.16X, as shown below.
PWR Valuation
Image Source: Zacks Investment Research
Quanta’s earnings estimates for 2026 and 2027 have decreased in the past 60 days. However, the revised estimates for 2026 and 2027 imply year-over-year growth of 30.5% and 17.3%, respectively.
Image Source: Zacks Investment Research
PWR’s Zacks Rank
Quanta currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Quanta Services, Inc. (PWR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).