How Data Centers & Rising Electricity Demand Are Reshaping Commercial Contracting_image
Reports and Insights

How Data Centers & Rising Electricity Demand Are Reshaping Commercial Contracting

Read time

2 Minutes

Last updated

May 6, 2025

Electricity demand is expected to surge over the next decade—a shift that’s set to reshape commercial infrastructure across the U.S. From data centers and electrification to energy mandates and backup systems, contractors aren’t just responding—they’re stepping into the lead.

Why Electricity Demand is Spiking

  • Data centers are scaling faster than ever
  • High-tech manufacturing is re-surging
  • Buildings and vehicles are going electric
  • In the Pacific Northwest alone, electricity demand could rise over the next 10 years by 7,400 average megawatts—the equivalent of powering seven Seattles

What This Means for Contractors

  • Backup systems are now expected—generators, batteries, and microgrids
  • Energy efficiency is driving budget decisions—owners want smarter installs
  • Grid strain is increasing demand for maintenance and service contracts
  • Contractors who understand energy planning and tech integrations are winning more work

Spotlight on Data Centers

The Infrastructure Race Already Underway

  • 24 GW of new capacity announced in H1 2024—3x year-over-year
  • Amazon has allocated $100B to data center expansion in 2025
  • 70% of global internet traffic flows through Northern Virginia daily
  • High-dollar, high-complexity builds are increasing demand across all MEP trades

By the Numbers

  • $2B average project value for new AI-focused data centers
  • 23,000+ employed in WA’s data center sector—up 70% since 2018
  • $178B projected global spend on data centers by 2025
  • Every trade—install, integration, maintenance—is seeing momentum

What Comes Next

This demand surge isn’t slowing down. The contractors who win the next decade will be the ones ready to:

  • Expand their scopes and capabilities around energy-focused infrastructure
  • Become strategic partners in system design, reliability, and sustainability
  • Secure the high-margin maintenance contracts that follow the install

Want to hear how others are getting ahead? Watch our panel discussion on how contractors are winning big in the new energy boom.

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