Data center development in construction sector

What happened: Cardinal Infrastructure (CDNL) secured a $24 million contract on April 9, 2023, for the initial phase of a large-scale, multi-phase data center campus development. Turner Construction, a leading construction company, has won 10 data center projects worth over $1 billion each in 2026, driving its revenues and backlog higher.

Market impact: This surge in data center development is pushing construction stocks like CDNL higher, while tech companies involved in data center operations and hardware supply, such as CoreWeave, Nebius Group, and Nvidia, also benefit from increased demand. The construction sector's focus on data centers is reshaping the market landscape, with more resources allocated to this high-growth segment.

What to watch next: Investors should monitor CDNL's earnings on May 15, 2023, to gauge the impact of the new contract on its financials. Additionally, keep an eye on Turner Construction's Q2 2026 results, expected in July 2026, for further insights into the data center construction trend. Lastly, track the broader data center market's growth trajectory, as indicated by key economic indicators and tech company earnings.