Dycom Industries is moving to deepen its role in the fast-expanding data center build-out with an acquisition that pulls the company directly into the heart of the electrical infrastructure powering hyperscale and AI facilities.
The U.S.-based specialty contractor, best known for its work in telecommunications and fiber deployment, has signed a definitive agreement to acquire Power Solutions, a major Mid-Atlantic electrical contracting firm focused on data centers and other mission-critical environments. The deal values Power Solutions at $1.95 billion and is expected to close before the end of Dycom’s current fiscal year, subject to regulatory and customary closing conditions.
Power Solutions has built its business around the dense cluster of data centers in and around Northern Virginia and the wider Washington D.C.–Maryland–Virginia corridor, widely regarded as the largest data center hub in the world. From that base, the company designs and delivers electrical systems for hyperscale campuses and critical facilities, supporting the high-density, high-availability requirements of modern cloud and AI infrastructure. With thousands of field and project employees and a multi-decade track record, it has become a contractor of choice for large technology customers seeking experienced partners for complex, multi-year build programs.
Dycom positions the acquisition as a strategic pivot that significantly increases its exposure to data centers and digital infrastructure. While the company has long been tied to the growth of broadband, fiber networks, and 5G backhaul, it has had less direct participation in the electrical systems inside the facilities those networks ultimately feed. By bringing Power Solutions into the group, Dycom gains a large, self-perform electrical capability that can be paired with its existing strengths in fiber construction, outside plant work, and campus connectivity.
In a statement announcing the deal, Dycom president and CEO Dan Peyovich described the acquisition as a milestone in diversifying the company’s revenue base and aligning it with long-term secular trends in digital infrastructure. He highlighted the growing demand for “AI-ready” and cloud data centers and argued that combining Dycom’s fiber and outside plant expertise with Power Solutions’ electrical capabilities gives customers a more integrated path to building and scaling new campuses.
Cloud Workloads and AI Models
The timing reflects broader market dynamics. Hyperscale and cloud providers are accelerating investment in new capacity to support both traditional cloud workloads and emerging generative AI models, which tend to be far more power-hungry. Analysts expect data center demand in the United States to grow at a strong compound rate over the remainder of the decade, with AI cited as a primary driver of new construction and retrofits. No region is more central to that story than the Washington–Northern Virginia area, where Power Solutions is already embedded with key customers and projects.
Financially, Power Solutions adds a substantial, growing business to Dycom’s portfolio. The contractor has delivered double-digit annual revenue growth over the past several years and maintains a sizable backlog of awarded work. Dycom expects those trends to continue as hyperscalers and large enterprises push ahead with new sites and expansion phases in the region. The target has also demonstrated consistent mid-teens profitability, reflecting both the technical complexity and mission-critical nature of its projects.
Post-closing, Power Solutions will retain its brand and continue to operate from its headquarters in Bowie, Maryland. Dycom emphasized that the existing leadership team is expected to remain in place, a signal that it is pursuing an integration model focused on operational continuity rather than rapid consolidation. For customers, that structure may offer reassurance that current project teams, delivery models, and site-level relationships will be preserved while gaining access to Dycom’s broader capabilities and balance sheet.
From Dycom’s perspective, the deal also meaningfully increases its skilled labor capacity in a market where qualified electrical and critical-facility trades are in short supply. Access to a larger, experienced workforce is likely to be a competitive differentiator as data center developers struggle to line up crews capable of delivering ever-larger, more power-dense projects on tight timelines.
Strategically, the company is framing Power Solutions as both a growth engine in its own right and a platform for expansion. Dycom sees scope to follow existing hyperscale and cloud customers into additional high-growth regions over time, using Power Solutions’ expertise and reputation as an entry point while cross-selling Dycom’s own services. The ability to offer more turnkey, campus-scale delivery – spanning fiber, electrical, and supporting infrastructure – is central to that vision.
For the broader digital infrastructure market, the transaction is another signal that specialist contractors are becoming as critical to AI and cloud expansion as semiconductor and server vendors. As facilities get larger, more power-intensive, and more operationally complex, the intersection of fiber, power, and critical systems design is becoming a strategic battleground – and Dycom is betting heavily that being able to execute across that stack is where long-term value will be created.
Executive Insights FAQ
What does this acquisition change for data center customers?
Customers gain a single corporate provider that can combine outside plant and fiber capabilities with deep electrical and critical-facility expertise. Power Solutions’ teams remain in place, but they will be able to tap Dycom’s resources and national footprint for larger or multi-region programs.
Will Power Solutions’ brand and operations be absorbed into Dycom?
No. Dycom plans to keep Power Solutions operating under its existing brand with its current management and headquarters. Integration is focused on aligning capabilities and commercial opportunities rather than renaming or restructuring the acquired business.
Why is the Mid-Atlantic region so central to this deal?
Northern Virginia and the surrounding area represent the largest concentration of data center capacity in the world, with a strong pipeline of AI and cloud projects. Power Solutions is already deeply embedded in this ecosystem, giving Dycom immediate exposure to high-growth, mission-critical work.
How does this fit into the broader AI and cloud infrastructure boom?
Generative AI and cloud workloads are driving demand for larger, more power-dense facilities with sophisticated electrical and connectivity requirements. Dycom is positioning itself as a key execution partner for that build-out by pairing fiber and telecom experience with Power Solutions’ data center electrical expertise.
What are the main risks or challenges with this move?
Key execution risks include integrating cultures while preserving Power Solutions’ performance, managing labor constraints in a tight skilled-trades market, and maintaining profitability as project scale and complexity increase. Dycom will also need to demonstrate that cross-selling and regional expansion opportunities can be realized without diluting focus on delivery quality.
