A major Chicago-based contractor is looking to boost its ability to provide data center and advanced manufacturing jobs.
Clayco, a full service construction company, has recently launched Power and Energya new business unit focused on the fast-growing energy sector, according to a March 4 company press release. The unit will offer design, engineering, procurement and construction services for energy infrastructure across the country.
According to the release, the rapid expansion of data centers, domestic manufacturing, electrification of transportation and housing will cause demand for electricity to grow by 15% to 20% by 2030. Newly available renewable energy sources are meeting this increased demand, especially solar.
For that reason, Clayco expects the new unit to generate $300 million in revenue by 2027, according to the company. The builder is already under contract and in the design phase of a solar and battery storage project in Illinois, slated to break ground this year.
Here, Clayco CEO Anthony Johnson talks to Construction Dive about why the company launched the new power and energy unit, how power generation fits into megaproject developments, and what challenges the construction effort could face.
This interview has been edited for brevity and clarity.
CONSTRUCTION DIVE: How does the incorporation of power generation into Clayco’s delivery model change the approach to development as large as data centers?
ANTHONY JOHNSON: Clayco is a leader in advanced technology construction and one of the top five data center builders in the United States, with 57 data center projects actively underway across the country. With the launch of Clayco Power and Energy, we are extending our integrated design and build model to utility-scale energy infrastructure.
Anthony Johnson
Permission granted by Clayco
Access to affordable, reliable and sustainable energy has become essential for modern infrastructures. With the rapid expansion of advanced technology facilities, including data centers that are critical to innovation, economic growth, and national security, the US energy sector is at a major inflection point.
Solar energy will play a significant role in meeting this demand along with other energy sources such as natural gas and nuclear. It remains one of the fastest forms of power generation to come online, and by 2025 about 85% of new electric generation capacity added in the United States came from solar and battery storage.
Clayco Power and Energy’s role is to execute and deliver design, engineering, procurement and construction services at scale to accelerate the deployment of reliable and cost-effective energy infrastructure in the United States. As part of this effort, we envision partnering with utilities, solar panel manufacturers, energy storage battery providers, developers, independent power producers and large energy users to help deliver solar and energy storage projects across the country.
What competitive advantage does an integrated energy and construction offering give Clayco?
Clayco is now the largest data center builder with a dedicated energy team in the United States.
As a leader in the delivery of large-scale integrated projects, the launch of Power and Energy allows us bring to the energy sector the precision, innovation, speed of commercialization and performance that we are known for. With end-to-end design, engineering, procurement and construction under one roof, our fully integrated model minimizes risk, accelerates schedules and maximizes value for customers looking to incorporate energy generation and storage into their advanced technology projects.
Do you expect on-site power generation to become standard for large facilities?
As demand on the U.S. energy grid increases with the continued arrival of advanced technology facilities, on-site power generation will be critical to meeting that demand. Encouragingly, we are seeing a growing appetite for on-site power generation. Owners of data centers and advanced manufacturing facilities are increasingly looking to provide their own power supply by building utility-scale battery and solar energy storage projects.
More recently, hyperscalers have pledged to build, run or buy their own power supply for new AI data centers and have also expressed a willingness to foot the bill for infrastructure upgrades needed to connect to the grid so that Americans’ electricity bills don’t rise as AI demand grows.
How much did data center power demand influence Clayco’s decision to launch this unit?
Given the ever-increasing need for electricity, using solar energy, along with other energy sources such as natural gas and nuclear, is essential to achieve a broader solution.
Interestingly, 85% of all new electric generation capacity brought online in the US was made up of solar and battery storage last year. Solar power remains one of the fastest forms of power generation to come online.
While data center power demand is certainly a key component of this, Clayco Power and Energy will serve a diverse group of customers, including utilities, independent power producers, financial sponsors and advanced manufacturing facilities.
What challenges do you expect?
Large-scale infrastructure projects in the energy and technology sectors are taking place at a time when demand for skilled labor in construction, engineering and energy infrastructure continues to grow.
As investment in data centers and power generation accelerates, labor availability and recruitment remain important considerations for projects of this scale.
Are there other trends you’re keeping an eye on?
As we look to upgrade America’s aging grid infrastructure and meet the growing demand for energy across the country, solar must be part of the solution. Solar energy is the fastest-moving type of energy to market and should be part of a multi-variable approach, along with fossil fuels, natural gas and nuclear, to meet America’s growing energy needs. As demand on the U.S. energy grid increases with the continued addition of advanced technology installations, harnessing all forms of energy, including solar, is critical to technological innovation, the U.S. economy, and our long-term national security.
