The overall value of new project starts nationwide managed just a 1% increase through 2023, according to the Dodge Construction Network, dragged down notably by double-digit declines in the residential sector and a decline in the manufacturing sector. On the positive side, the sector that gained the most ground in 2023 was electricity, which saw a sizeable 56% increase in project starts over the past year.
Judging by Top Starts’ ranking of the largest projects to begin construction during 2023 located in the states of Arizona, Nevada and New Mexico, it’s easy to see that the Southwest did its part to boost construction starts of the energy sector. Based on this year’s ranking, the energy projects, mostly solar installations, collectively accounted for nearly $8.2 billion in global costs.
Topping the list of major Southwest startups is the SunZia Wind project in Lincoln, NM, estimated at $4.5 billion. Quanta Infrastructure Services Group is the engineering, procurement and construction contractor for the transmission line, with Hitachi Energy as the HVDC supplier and Blattner Energy, a unit of Quanta, as the EPC contractor for the wind project. A second SunZia contract, valued at $1 billion, ranks fourth.
In total, of the 20 projects included in the Top Starts ranking, eight will offer solar and/or wind energy.
Meanwhile, the manufacturing sector — forecast by Dodge to see a 16 percent jump in project starts nationwide through 2024 — also delivered numerous projects for this year’s Southwest ranking. For example, LG Energy’s battery plant in Queen Creek, Arizona, valued at $1.6 billion, ranked second. WG Yates & Sons Construction Co. is delivering the project, which is estimated to be completed by November 2025.
Another major project of note is the Thacker Pass lithium mine in northern Nevada, estimated at approximately $1 billion by Dodge Data & Analytics. Project owner Lithium Americas has said Thacker Pass will be the largest lithium mine in North America, eventually producing more than 80,000 tons of battery-grade lithium carbonate per year. Bechtel Corp. leads the project through an engineering-acquisition-construction management contract.
In total, the projects listed in this year’s Southwest Top Starts ranking total more than $14.2 billion.
LG Energy’s $1.6 billion battery plant in Queen Creek, Arizona, ranked second on this year’s Top Starts ranking.
Image courtesy of LG Energy
The impact of Intel
Although Intel Corp. placed no new projects on the 2023 Top Starts rankings for the first time in two years, its $20 billion project to build Fab 52 and Fab 62, with general contractor Hoffman Construction Co., is accelerating towards completion, the first facility is expected to become operational by the end of this year and the second to be completed in 2025.
In recognition of the impact of these projects not only on the construction industry of the Southwest, but also because of the overall national importance of these factories, Intel Corp. was named Owner of the Year 2024. We invite you to read our profile of Intel and how the company and its contractors provide this massive facility in Chandler, Arizona.
