President Trump invoked the Defense Production Act to try to help meet energy demand.
Power Infrastructure construction starts have surged in recent years and have potential to move even higher in the future.
The rapidly increasing focus on energy could provide a robust pipeline of potential opportunities for construction firms.
In a memorandum, the President stated, “I find that ensuring the domestic capability for development, manufacturing, and deployment of large-scale energy and energy-related infrastructure is essential to United States national defense."
"However, due to financing risks, regulatory delays, and market barriers, these needs cannot be fully met under existing market conditions.”
Power Infrastructure construction starts nearly doubled from $19 billion in 2023 to $37 billion in 2025, with ConstructConnect forecasting continued growth through 2027. The ConstructConnect Insight Forecast series tracks annual U.S. power infrastructure construction starts by dollar value from 2015 through the 2027 outlook period. Image: ConstructConnect Insight Forecast.
The announcement coincides with a surge in Power Infrastructure construction starts, which nearly doubled between 2023 and 2025. With further expansion anticipated, the sector presents a promising pipeline of opportunities for construction firms specializing in power infrastructure projects.
Invoking the Defense Production Act marks a pivotal move, empowering the President to adjust energy industry policies to address national defense priorities.
The Presidential memorandum specifically designates large-scale energy infrastructure (including engineering, permitting, site acquisition, manufacturing, and financing) as critical to national defense. It highlights that private industry alone cannot meet these demands in a timely manner due to financing risks, regulatory hurdles, and market barriers.
Consequently, the memorandum authorizes Presidential action under the Defense Production Act, enabling measures such as purchases, financial commitments, and production support to ensure the nation’s energy infrastructure needs are met effectively.
Energy infrastructure has become a central focus as the nation contends with surging demand, driven largely by energy-intensive data centers and manufacturing developments. According to the U.S. Energy Information Administration, after 15 years of nearly stagnant electricity consumption, demand has grown by an average of 2.1% annually over the past five years.
Power Infrastructure construction spending has surged dramatically in the post-COVID era while demand started to increase, with starts increasing by an impressive 98.5% during this period. This upward trajectory is expected to continue, with forecasts predicting a further 32% rise in 2026 compared to 2025, before growth stabilizes around a forecasted 5% annually in subsequent years.
Once a relatively small segment of the construction industry, Power Infrastructure has grown from under $2 billion a decade ago to a projected near $50 billion.
This growth is being driven by the rising energy demands of power-intensive data centers and manufacturing facilities, solidifying the subcategory as a critical component of the construction landscape.
[Read the ConstructConnect Data Center Report]
For construction firms, this trend represents a potentially robust and sustained opportunity. Companies with expertise and capacity in power infrastructure-related trades are positioned to capitalize on the growing demand, as the industry continues to expand and attract heightened focus.
Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next.
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com