Granite Construction Expands into Data Centers Amid Growing Backlog
Granite Construction is diversifying its business by expanding into data center construction, with a threefold increase in backlog from $65 million to $223 million year-over-year. The company aims for 10% of revenue to come from this sector while maintaining focus on rail infrastructure and traditional transportation projects. The firm reported second-quarter revenue of $1.46 billion—a 29% annual increase—and raised its full-year guidance due to a growing project backlog, now at $7.4 billion. However, Granite also faces uncertainty as the Infrastructure Investment and Jobs Act nears expiration with potential funding cuts for public transit. Despite strong growth in infrastructure markets, Granite posted a net loss of $278 million compared to profits last year, citing challenges from rising costs or project execution issues.
Tickers: $GVA
Topics: backlog growth data centers highway funding rail infrastructure