Will Data Center Infrastructure Expansion Support Quanta's Growth?

Quanta Services, Inc. PWR is operating in a market where fast-growing data center needs are reshaping power demand. Large load customers are seeking quicker access to reliable electricity and the company is expanding its platform to support this shift. The company is focusing on integrated solutions that combine engineering, construction and craft labor to meet rising infrastructure requirements linked to data center growth.

In the third quarter of 2025, Quanta’s backlog reached a record $39.2 billion, up from $33.96 billion a year ago, and remaining performance obligations rose to $21 billion. The increase reflects accelerating demand in the Electric segment and steady activity across end markets, supported by needs tied to data centers, manufacturing and reshoring, industrialization, electrification and power grid expansion. These trends are closely linked to data center growth, which requires rapid build timelines and a consistent power supply. 

The company noted that customers are seeking faster execution, and data center operators are driving this urgency. PWR highlighted its ability to support generation behind the meter, balance-of-plant work and full facility builds, positioning the platform to participate across multiple stages of data center-infrastructure expansion. The company also emphasized the importance of a scalable craft workforce, which remains central to delivering these projects at the required pace.

Overall, data center-driven power demand is emerging as a key growth catalyst. With integrated capabilities, rising backlog momentum and a stronger presence in generation and storage, data center infrastructure expansion is likely to support Quanta’s growth over the coming years.

Rising Demand for Data Centers Spurs Growth Opportunities

The rapid expansion of digital infrastructure is opening new opportunities across the construction and services industry. Sterling Infrastructure, Inc. STRL and EMCOR Group, Inc. EME are two companies benefiting from the accelerating demand for data center development.

Sterling continues to strengthen its position in large-scale, mission-critical site development. In the third quarter of 2025, Sterling reported an exceptional 125% year-over-year increase in data center revenues, reflecting the growing need for technically complex and high-capacity facilities. The E-Infrastructure Solutions segment remains the key growth driver, supported by broad-based demand and strong execution. With robust project flow and a healthy pipeline, the company is well-positioned to capitalize on the ongoing expansion in data-related infrastructure.

EMCOR’s data center capabilities and nationwide presence give it an edge in serving hyperscale clients and complex mission-critical facilities. While both Quanta and EMCOR benefit from robust demand trends, Sterling’s integrated approach — combining site development and electrical services through its CEC acquisition — offers a distinctive advantage. This synergy strengthens Sterling’s competitive positioning as data center investments continue to expand through 2026.

PWR’s Price Performance, Valuation & Estimates

Shares of Quanta have gained 42.2% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s growth of 15 %.

From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 37.14X, up from the industry’s 25.36X.

Quanta’s earnings estimate for 2025 has remained unchanged in the past 30 days. The estimated figures for 2025 and 2026 indicate 17.8% and 16.7% year-over-year growth, respectively.

PWR’s Zacks Rank

Quanta currently carries 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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This article originally published on Zacks Investment Research (zacks.com).

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