Big Tech Will Spend $735 Billion on Data Centers. This Boring Electrical Contractor Collects the Checks.

Hyperscalers are going all-in on artificial intelligence (AI). Amazon, Microsoft, Alphabet, and Meta Platforms are expected to spend a combined $735 billion on data centers this year, and this may be just the beginning. PwC estimates global investment in AI infrastructure could reach a staggering $31.6 trillion by 2050.

All that computing power needs electricity, cooling, and a company with the expertise to deliver it. As hyperscalers race to build AI infrastructure, the biggest constraints are shifting from chips to power access and skilled labor. That puts Quanta Services (NYSE: PWR) in an enviable position to collect the checks. Here's what investors need to know.

Image source: Getty Images.

Quanta Services is perfectly positioned to facilitate the data center build-out

Besides chips, hyperscalers need energy. That requires high-voltage electrical, mechanical, and grid interconnection engineering, which is Quanta Services' specialty. The company provides engineering, procurement, and construction (EPC) services, with a particular focus on electric power, renewable energy, underground utility, and other energy infrastructure.

One of the biggest factors that sets Quanta apart is its skilled labor force of 85,000 employees, which the company spends $250 million per year training. Developing a skilled trade workforce, including electricians, lineworkers, plumbers, and engineers, takes years, giving Quanta a robust competitive advantage.

The infrastructure company's revenue and backlog are surging

Quanta focuses on data center build-out outside chips, and its "balance of plant" approach aims to capture 80% of total facility capital expenditure, excluding chips. This includes high-volatility electrical and grid interconnection, cooling infrastructure, site development, and off-site prefabrication and integration. Quanta has made this possible by acquiring specialized platforms such as Cupertino Electric, Dynamic Systems, Phalcon, and Enerfab.

Quanta is seeing robust growth as data center spending rises. In the first half of 2026, Quanta earned $17.4 billion in revenue, a 34% increase from the same period last year. Meanwhile, net income surged 80% to $672 million. It finished the second quarter with a record backlog of $53 billion, with 60% of this expected to convert into revenue within the next 12 months.

Quanta Services is a top beneficiary of hyperscaler spending

The AI data center build-out is driving historic investments in infrastructure and the power solutions that make them possible, and Quanta Services is well-positioned to benefit.

Strong growth has led Quanta to raise its 2026 fiscal guidance, with management projecting full-year revenue around $39.5 billion at the midpoint and free cash flow of $2 billion to $2.5 billion. Management projects earnings per share of $16.70 at the midpoint this year, representing a 55% surge from last year.

Analysts project strong double-digit growth in the years ahead. For investors seeking exposure to the data center build-out unrelated to chips, Quanta Services is a top industrial stock to consider buying today.

Courtney Carlsen has positions in Alphabet, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Quanta Services. The Motley Fool has a disclosure policy.