The surge in synthetic intelligence (AI) is considerably reshaping energy demand. AI knowledge facilities can eat considerably extra power than conventional knowledge facilities, and Deloitte estimates that energy demand from AI knowledge facilities within the U.S. might enhance by greater than 30 instances by 2035.
A single knowledge heart powering AI can eat as a lot electrical energy as a small metropolis, highlighting the pressing want to deal with rising energy demand. Hyperscalers and different industrial gamers are taking issues into their very own fingers by bypassing grid connections and investing in on-site pure gasoline generators, gas cells, or different modular power options.
This presents a big alternative for firms within the engineering and development sector, comparable to Fluor(NYSE: FLR). Fluor has the experience and scale to assist firms navigate the complicated allowing course of, and was named a prime knowledge heart constructor by Information Centre journal in 2025. Here is what traders must learn about Fluor’s long-term progress alternative.
Picture supply: Getty Pictures.
Fluor affords a variety of engineering, procurement, and development (EPC) providers, serving as a normal contractor for a few of the most complicated industrial initiatives. Fluor is not only a builder; it additionally designs and manages the development of enormous, multibillion-dollar amenities, together with oil refineries, knowledge facilities, and mining complexes.
Its largest enterprise section immediately is city options, the place it offers experience in constructing superior know-how amenities, together with AI knowledge facilities and semiconductor vegetation, in addition to mining infrastructure for the power sector, comparable to copper and lithium. It additionally offers power options, comparable to liquefied pure gasoline (LNG) export terminals, chemical compounds, and nuclear energy initiatives, in addition to technical and administration providers to the U.S. authorities.
Fluor makes cash from lump-sum (fastened value) contracts together with reimbursable contracts, which embrace negotiated charges and charges plus prices for labor and supplies. Roughly 82% of its backlog consists of reimbursable contracts, which helps defend Fluor from price overruns because of inflation or sudden development delays, making its enterprise extra steady than beforehand.
Fluor’s aggressive edge comes from its scale and technical experience developed over its 114-year historical past. The corporate has 27,000 staff throughout 40 nations and is among the many few with experience in complicated technical initiatives, together with the development of nuclear reactors and mining in distant areas worldwide. This potential to deal with megaprojects makes it a go-to for lots of the world’s largest firms.
The corporate is positioning itself to give attention to large, complicated knowledge heart campuses required by hyperscalers within the U.S. It sees itself as well-positioned to deal with the logistical challenges, provide chain administration, and modularization that include these initiatives. The corporate has achieved success in constructing knowledge facilities in Asia and Europe and can apply this experience to the North American market.
Nevertheless it is not simply knowledge facilities. Fluor’s mining experience is one other vital alternative and a key progress driver for its city options section. Whereas many give attention to AI software program, substantial uncooked supplies are required for knowledge heart development, together with copper, batteries, and aluminum for superior thermal administration methods.
Fluor is securing front-end engineering and design (FEED) work, which usually results in full development contracts, for copper, lithium, rare-earth minerals, and inexperienced metal. The corporate can be a serious investor in NuScale Energy and the lead EPC accomplice for its energy vegetation, beginning with RoPower in Romania. Whereas Fluor is promoting its stake in NuScale, it should proceed to play a key function within the buildout.
Fluor’s backlog (the greenback worth of labor awarded however not but accomplished) stands at $28.2 billion as of Sept. 30, with 82% of those contracts reimbursable. Its greatest progress proper now comes from the demand for copper, lithium, aluminum, and metal, with initiatives throughout North and South America and the Center East. The corporate can be promoting its stake in NuScale and can use the proceeds for inventory repurchases and different progress investments.
Wanting forward, administration expects progress to speed up after a few years of muted progress amid excessive rates of interest and commerce coverage uncertainty, with bigger mission awards anticipated in late 2026 and early 2027. For traders looking for to capitalize on the AI knowledge heart, power, and mining buildouts, Fluor is an intriguing pick-and-shovel inventory at an inexpensive valuation to purchase immediately.
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Courtney Carlsen has no place in any of the shares talked about. The Motley Idiot recommends NuScale Energy. The Motley Idiot has a disclosure coverage.
