Private Equity Storms Into AI Data Center Construction: 529 Deals, 56.5% Surge

Investors are watching the whirlwind of private equity flow into AI data center construction with keen interest.

Sectoral Leak

■529 PE deals marked a 56.5% jump in Q2.

■Data‑center construction spending rose 46% year‑on‑year in June.

■Excluding data centers, private non‑residential spending fell 7.9%.

Numbers in Fury

■HVAC contractors secured 76 PE deals worth $3.8 billion.

■Electrical contractors closed 38 deals, surpassing last year’s 37.

■Plumbing and water businesses logged 21 deals versus 24 in 2025.

Operational Back‑stage

■Data‑center contractors hold an average backlog of 11 months, versus 8.5 for the rest of the sector.

■PitchBook’s lead industrial analyst Jim Corridore noted that interest rates will not affect data‑center deals.

■Cory Markling highlighted potential areas: equipment recycling, directional boring, fiber optics, and electrical engineering.

Turning Points Ahead

■PE is targeting ancillary services, calling the market’s first and second innings.

■Rising demand for data centers fuels sustainable sector growth.

■Business volume and cost management will shape PE’s future strategy.

The surge of private equity into AI data centers is redefining market dynamics. This shift boosts infrastructure growth potential while prompting companies to reassess their expansion strategies. For investors, it signals a period of high‑yield opportunities coupled with critical risk management.