After two relatively quiet years, billion-dollar construction deals are back. The second half of 2025 set the tone, and 2026 has so far delivered the proof point: engineering firms, building products distributors, and construction technology vendors are all consolidating, and the strategic logic behind it is unusually concentrated in two themes.
The first is data centers. The second is the electrical grid that will power them.
The deal sheet
A few transactions tell the story. Engineering firm WSP closed a $3.3 billion acquisition of TRC Companies, locking in a stronger U.S. footprint in environmental and power services. Lowes acquired Foundation Building Materials for $8.8 billion, deepening a pro-channel strategy that puts the home improvement giant squarely in commercial supply. Home Depot bought GMS along the same logic. CRH acquired Eco Material Technologies for $2.1 billion, expanding into supplementary cementitious materials at a time when low-carbon concrete is becoming a procurement requirement on more projects.
These are the visible deals. Underneath, mid-market consolidation is accelerating across electrical contracting, mechanical contracting, civil engineering services, and contech.
Why now
Three forces are converging.
First, the data center boom is real and durable. The continued power and capacity demands of AI workloads are turning data center construction and the grid infrastructure that supports it into the most reliable demand signal in the industry. Buyers see firms that can serve hyperscale clients — design-build engineers, electrical contractors, switchgear vendors, modular builders — as scarce and worth paying for.
Second, the labor problem is not getting easier. Acquiring a competitor is now one of the fastest ways to acquire workforce. Talent capacity has become its own deal thesis.
Third, U.S. trade and industrial policy continues to push buyers toward domestic capacity. Construction firms with significant U.S. manufacturing, sourcing, or installation capability have a structural premium over those exposed to imported materials and components.
What to watch from here
PwC outlook flags two patterns to expect through the rest of 2026: more cross-border interest from European and Canadian buyers looking for U.S. exposure, and increased tuck-in activity from large GCs adding specialty trade capabilities to handle data center and battery plant work in-house.
The other pattern to watch is at the lower end of the market. Mid-sized contractors that built strong franchises during the post-2020 backlog years and now face succession questions are quietly going to market. Most of these will not make headlines individually — but the cumulative effect on competitive landscapes in regional markets will be substantial.
The construction M&A cycle has historically tracked broader industrial dealmaking with about a six-month lag. If the current pace continues, the second half of 2026 will be the busiest stretch of construction transactions since 2022.