Will Growing Data Center Construction Through 2030 Support Dycom?

Growing data center construction through 2030 is emerging as one of the most durable themes across U.S. infrastructure, supported by rising digital workloads, cloud expansion and sustained investment in high-density computing facilities. Dycom Industries, Inc. DY is increasingly aligned with this long-term shift as data center projects require deeper fiber integration, complex electrical systems and technically intensive construction capabilities.

During the third-quarter fiscal 2026 earnings call, the company cited estimates that global data center infrastructure CapEx from 2025 to 2030 could reach roughly $6.7 trillion. This includes approximately $100 billion devoted to network infrastructure and around $600 billion for labor. More than 40% of this investment is expected to be deployed in the United States, implying about $240 billion of U.S. data center labor spend over the next five years. The company emphasized that its role has expanded due to supporting more work within mission-critical areas of data centers. This gives the company a broader platform to participate in the accelerating construction cycle. 

Backlog performance underscores the momentum. As of October 2025, total backlog increased 4.7% year over year to $8.22 billion, while the next 12-month backlog rose 11.4%. Strong demand for fiber and data center programs remains a key contributor, with momentum expected to continue through fiscal 2027. Furthermore, Dycom’s pending acquisition of Power Solutions strengthens this positioning by extending it into mission-critical electrical infrastructure, a central requirement within modern data center developments. 

The broader environment is also supportive. On Dec. 10, 2025, the Federal Reserve reduced interest rates by a quarter percentage point for the third time this year, lowering the benchmark in the range of 3.5% to 3.75% and signaling another cut in 2026. Moderating borrowing costs may provide incremental support for long-duration infrastructure commitments, including data center construction.

Taken together, the sustained expansion of U.S. data center construction through 2030 aligns well with Dycom’s expanding capabilities, growing visibility and increasingly diversified infrastructure platform.

Competitive Landscape in Data Center Infrastructure

Quanta Services, Inc. PWR and MasTec, Inc. MTZ are among the contractors active in data center and network construction, creating a steady level of competition as project volumes rise.

MasTec operates across communications and power infrastructure and supports fiber expansion programs for large customers. Its scale and mix of services position MasTec to participate in upcoming data center-related network work. Quanta Services is also a key player in utility and electrical infrastructure. Its capabilities in transmission, power delivery and high-voltage systems provide access to data center construction, where electrical demand continues to grow. 

Both companies benefit from broad customer bases and nationwide reach, which keeps competition active across major markets. As data center projects become larger and more complex, contractors with strong technical resources and workforce capacity remain well placed to participate. This backdrop shapes how Dycom competes for new opportunities as digital infrastructure spending increases through 2030.

DY Stock’s Price Performance & Valuation Trend

Shares of this specialty contracting firm operating in the telecom industry have trended upward 38% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

DY stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.68, as evidenced by the chart below.

Earnings Estimate Trend Favors DY

DY’s earnings estimates for fiscal 2026 and 2027 have trended upward over the past 30 days by 5.6% and 36.9%, respectively. The revised estimated figures for fiscal 2026 and 2027 imply year-over-year growth of 25.2% and 42.3%, respectively.

The robust market fundamentals and DY’s strategic in-house capabilities are likely to have induced bullish sentiments among analysts.

Dycom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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