{
  "id": 4625685,
  "title": "AI data center boom sends PE into the trades",
  "url": "https://urgent.news/2026/08/31/ai-data-center-boom-sends-pe-into-the-trades",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-31T10:00:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/technology/ai/articles/ai-data-center-boom-sends-100000656.html"
  },
  "original_language": "en",
  "account": "Private equity firms are expanding their focus to include the construction and engineering trades involved in building and equipping AI data centers. In the second quarter of 2026, private equity activity in construction and engineering reached a record 529 deals, a 56.5% increase from the previous year, according to PitchBook's Q2 Construction and Engineering report. However, the average deal value decreased slightly compared to the prior quarter, as investors prioritized smaller investments over large-scale platforms.\n\nData center construction spending surged by 46% in June compared to the same period the previous year. When data centers are excluded, private nonresidential spending actually declined by 7.9%, based on an Associated Builders and Contractors analysis of Census data.\n\nJim Corridore, PitchBook's lead industrials analyst, attributes the surge in dealmaking to the availability of capital and demand for data center-related infrastructure. Specialized trades, such as site work, electrification, and cooling systems, are experiencing a boom. HVAC contractors completed 76 deals worth $3.8 billion in the first half of 2026, surpassing the 63 deals closed in all of 2025. Electrical contractors handled 38 deals, also exceeding last year's total of 37. Plumbing and water services logged 21 deals, marking a 9% increase from 2025.\n\nIndustry experts predict a continued interest in equipment recycling, directional boring, fiber optics, and electrical engineering. Cory Markling, a partner at EisnerAmper's private equity deal services, notes that the build-out of data center infrastructure is keeping contractors busy, with the average backlog for those working in data centers at 11 months, compared to 8.5 months for other contractors. While the industry is still in its early stages, Markling believes there is ample room for growth in the coming years.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}