Construction News for the Week Ending May 8, 2026
Maine Governor Vetoes Data Center Ban Bill
Maine Governor Janet Mills vetoed a bill that would have imposed a ban on data centers larger than 20 megawatts for over a year. The veto was upheld due to the bill’s failure to accommodate a popular data center project in Jay, which is expected to create jobs and increase tax revenue.
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Kiewit Removed from Baltimore’s Key Bridge Project
Kiewit, the design-build contractor for the replacement of Baltimore’s Key Bridge, has been removed from the project by the Maryland Transportation Authority (MDTA). The MDTA cited Kiewit’s unacceptable cost proposal for Phase 2, which exceeded the state’s independent cost estimates and would have further extended the project timeline. Despite the change in contractors, work on the project will continue, with Kiewit fulfilling its contractual obligations for Phase 1.
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$1.29 Billion Contract Awarded for Hudson Tunnel Project’s Package 1C
The Gateway Development Commission awarded a $1.29 billion contract to a joint venture for the Hudson Tunnel Project’s Package 1C, covering 1.5 miles of tunnel boring under the Hudson River. This marks a significant milestone for the $16 billion project, with six out of ten construction packages now in progress or complete. The Package 1C contract involves constructing two parallel tunnel tubes, installing tunnel segments, and ground stabilization efforts.
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Turner Construction Offers Free AI Safety Tool
Turner Construction is making its AI-powered safety tool, SafeT Coach, available to the broader construction industry for free. The tool, developed through Turner’s AI Innovation Challenge and deployed within OpenAI’s ChatGPT environment, provides safety guidance based on Turner’s EHS framework and OSHA standards. It has already been successfully used on Turner jobsites and will be available in two versions: one for internal use and one for external users.
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“All In Together: Construction Safety Week”
Construction Safety Week, focusing on the theme “All In Together,” emphasizes unity and standardization in safety practices across the industry. Leaders aim to simplify safety protocols, ensuring consistent recognition, response, and respect for high-risk work, regardless of the jobsite or company.
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Build America, Buy America Compliance Act Introduced
U.S. Senators Tammy Baldwin and Jim Banks introduced the Build America, Buy America Compliance Act, requiring federal agencies to comply with the Build America, Buy America Act for infrastructure projects funded by the Infrastructure Investment and Jobs Act. The bill mandates annual reports detailing BABA implementation, transparency, and accountability. It also requires agencies to identify infrastructure programs, specify BABA implementation status, and provide timelines for compliance.
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Cleveland Browns’ New Stadium Construction Begins
AECOM Hunt and Turner Construction broke ground on the Cleveland Browns’ new domed stadium, Huntington Bank Field, in Brook Park, Ohio. The $2.4 billion project, facing a lawsuit over state funding, will anchor a mixed-use entertainment district and open for the 2029 NFL season.
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AbbVie’s $1.4 Billion Investment in Durham Manufacturing Campus
AbbVie will invest $1.4 billion to build a manufacturing campus in Durham, North Carolina, creating 734 jobs and supporting production of immunology, neuroscience, and oncology medicines. The facility, located near Research Triangle Park, will be AbbVie’s U.S. center of excellence for small-volume parenteral drug manufacturing. This investment is part of AbbVie’s $100 billion commitment to U.S. research and development over the next decade.
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Bally’s $1.7 Billion Chicago River Casino Development Complete
Bally’s topped out its $1.7 billion casino development along the Chicago River, featuring a hotel, entertainment theater, and parking spaces. The project is part of a 30-acre redevelopment of the former Chicago Tribune site, aiming to reconnect neighborhoods to the river.
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Minnesota DLI Recovers $1.28 Million in Wage Theft Case
The Minnesota Department of Labor and Industry recovered $1.28 million in back wages for construction workers after investigating Property Maintenance and Construction and Advantage Construction for wage theft. This is the largest recovery in a wage and hour investigation by the Minnesota DLI.
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Schneider Electric Hits Record Revenue Amid AI Boom
Schneider Electric reported record quarterly revenue, driven by strong demand from data centers, particularly in North America. The company’s energy management segment saw a 13% year-over-year increase, fueled by the AI boom and rising geopolitical tensions. While Schneider reaffirmed its 2026 financial targets, it acknowledged potential challenges from geopolitical and macroeconomic uncertainties, particularly in the Middle East and Africa.
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Jacobs Sees 40% AI Infrastructure Growth
Jacobs experienced significant growth in its fiscal second quarter, driven by strong demand for AI-driven infrastructure, particularly data centers. The company’s data center business grew over 100% year over year, contributing to a 40% growth in the AI infrastructure portion of its portfolio. This growth is expected to continue, bolstering total revenue growth and enabling an increased full-year outlook.
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Stagnant Construction Labor Market Amid Iran War Concerns
The construction industry’s labor market remained stagnant through March 2026, with 224,000 unfilled jobs, a 19% decrease from the previous year. This indicates soft construction demand, with firms maintaining their current workforce rather than expanding. The ongoing Iran War could further impact the industry by raising energy prices and increasing uncertainty, potentially delaying or reprioritizing projects.
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WSP’s Growth Strategy: AI and M&A in Focus
WSP is leveraging AI and M&A to drive growth, particularly in data center and power generation projects. The company’s acquisition of TRC has strengthened its power and energy service offering, while its AI usage focuses on improving quality, decision-making, and risk mitigation. WSP has rolled out AI tools to over 30,000 employees and continues to explore M&A opportunities.
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Rising Demand for Skilled Trades
The demand for skilled trades is increasing due to building complexity, construction activity, and the retirement of older workers. While job postings for skilled trades have doubled over the past decade, existing talent pipelines are insufficient, with 2.1 million jobs projected to go unfilled by 2030. Organizations are addressing this by lowering education barriers and providing hands-on training to attract new talent.
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Jacobs Sees 40% AI Infrastructure Growth
Jacobs experienced significant growth in its fiscal second quarter, driven by strong demand for AI-driven infrastructure, particularly data centers. The company’s data center business grew over 100% year over year, contributing to a 40% growth in the AI infrastructure portion of its portfolio. This growth is expected to continue, bolstering total revenue growth and enabling an increased full-year outlook.
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Skanska’s U.S. Construction Success Amid Challenges
Skanska reported success in its construction sector, particularly in building data centers and infrastructure projects in the U.S. Despite the Iran War and potential material cost impacts, the company remains optimistic about future projects and is prepared to help clients develop data centers in alternative locations if needed.
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Tutor Perini’s Growth Outlook in 2026-2027
Tutor Perini, a heavy civil contractor, anticipates significant growth in 2026 and 2027 due to ongoing megaprojects. While exploring opportunities in data centers, the company remains focused on its core business.
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