The surge in artificial intelligence (AI) is significantly reshaping power demand. AI data centers can consume significantly more energy than traditional data centers, and Deloitte estimates that power demand from AI data centers in the U.S. could increase by more than 30 times by 2035.
A single data center powering AI can consume as much electricity as a small city, highlighting the urgent need to address growing power demand. Hyperscalers and other industrial players are taking matters into their own hands by bypassing grid connections and investing in on-site natural gas turbines, fuel cells, or other modular energy solutions.
This presents a significant opportunity for companies in the engineering and construction sector, such as Fluor (FLR 0.66%). Fluor has the expertise and scale to help companies navigate the complex permitting process, and was named a top data center constructor by Data Centre magazine in 2025. Here's what investors need to know about Fluor's long-term growth opportunity.
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Fluor is a key player in major infrastructure projects
Fluor offers a range of engineering, procurement, and construction (EPC) services, serving as a general contractor for some of the most complex industrial projects. Fluor isn't just a builder; it also designs and manages the construction of large, multibillion-dollar facilities, including oil refineries, data centers, and mining complexes.
Its largest business segment today is urban solutions, where it provides expertise in building advanced technology facilities, including AI data centers and semiconductor plants, as well as mining infrastructure for the energy sector, such as copper and lithium. It also provides energy solutions, such as liquefied natural gas (LNG) export terminals, chemicals, and nuclear power projects, as well as technical and management services to the U.S. government.
Fluor makes money from lump-sum (fixed price) contracts along with reimbursable contracts, which include negotiated rates and fees plus costs for labor and materials. Approximately 82% of its backlog consists of reimbursable contracts, which helps protect Fluor from cost overruns due to inflation or unexpected construction delays, making its business more stable than previously.
Fluor has multiple growth engines
Fluor's competitive edge comes from its scale and technical expertise developed over its 114-year history. The company has 27,000 employees across 40 countries and is among the few with expertise in complex technical projects, including the construction of nuclear reactors and mining in remote regions worldwide. This ability to handle megaprojects makes it a go-to for many of the world's largest companies.
NYSE: FLR
Key Data Points
The company is positioning itself to focus on massive, complex data center campuses required by hyperscalers in the U.S. It sees itself as well-positioned to address the logistical challenges, supply chain management, and modularization that come with these projects. The company has achieved success in building data centers in Asia and Europe and will apply this expertise to the North American market.
But it isn't just data centers. Fluor's mining expertise is another significant opportunity and a key growth driver for its urban solutions segment. While many focus on AI software, substantial raw materials are required for data center construction, including copper, batteries, and aluminum for advanced thermal management systems.
Fluor is securing front-end engineering and design (FEED) work, which typically leads to full construction contracts, for copper, lithium, rare-earth minerals, and green steel. The company is also a major investor in NuScale Power and the lead EPC partner for its power plants, starting with RoPower in Romania. While Fluor is selling its stake in NuScale, it will continue to play a key role in the buildout.
A top construction stock for the buildout of AI and mining infrastructure
Fluor's backlog (the dollar value of work awarded but not yet completed) stands at $28.2 billion as of Sept. 30, with 82% of these contracts reimbursable. Its biggest growth right now comes from the demand for copper, lithium, aluminum, and steel, with projects across North and South America and the Middle East. The company is also selling its stake in NuScale and will use the proceeds for stock repurchases and other growth investments.
Looking ahead, management expects growth to accelerate after a couple of years of muted growth amid high interest rates and trade policy uncertainty, with larger project awards expected in late 2026 and early 2027. For investors seeking to capitalize on the AI data center, energy, and mining buildouts, Fluor is an intriguing pick-and-shovel stock at a reasonable valuation to buy today.
