Electrical Equipment Manufacturers NAICS 3353

Jan 26, 2026 - Nonresidential Building Spending to Remain Sluggish Through 2027

• Weak nonresidential building construction activity may soften demand for architectural paints. Construction spending for nonresidential buildings is expected to remain sluggish in 2026 and 2027, according to the latest American Institute of Architects’ (AIA) Consensus Construction Forecast. Spending on nonresidential building construction is expected to rise 1% in 2026 and 2.2% in 2027. Through 2027, commercial facility growth will be led by data centers, with spending increasing 26.3% in 2026 and 16.5% in 2027. However, offices are expected to see a sharp decline in spending over the forecast period, while warehouse and retail will see weak growth this year and modest gains in 2027. Manufacturing construction spending will fall 3.9% in 2026 and drop 2.8% next year. Spending on institutional projects will grow 2.7% this year and 2.8% in 2027, led by steady growth in the health sector, but educational, and amusement and recreation project spending will be flat.
• Contractors are entering 2026 with subdued expectations as economic uncertainty, tariffs, immigration enforcement, and persistent labor shortages weigh on confidence, even as demand for data centers and power projects remains strong. The Associated General Contractors of America’s latest outlook shows contractors are optimistic about data center growth, with 65% expecting the market to grow. Still, contractor sentiment regarding education, lodging, office, and retail construction all declined sharply compared to last year. Many firms report project delays or cancellations due to financing challenges and rising material and labor costs, and more than 80% struggle to fill both craft and salaried positions.

• The Electric Reliability Council of Texas (ERCOT) is evaluating how to handle a massive surge in large-load interconnection requests from data centers, according to Utility Dive. Texas grid planners are evaluating more than 233 GW of potential new demand, with over 70% tied to data centers. ERCOT officials said the total large load capacity under review near the end of 2025 was almost 300% higher than the previous year, overwhelming processes designed for far fewer requests. The Public Utility Commission of Texas, which regulates ERCOT, is implementing state law SB 6 to standardize interconnection rules, improve load forecasting, and set data center curtailment requirements. ERCOT is also reviewing 2,000 new generation interconnection requests totaling 432 GW, mostly solar and storage. Utilities such as Oncor are beginning regulatory filings for major lines expected to come online by late 2028.
• Chevron plans to build a 2.5-gigawatt off-grid power plant in West Texas by 2027 that's powered by the company's natural gas, according to The Wall Street Journal. The facility, designed to support an AI data center, could expand to 5 gigawatts, signaling rising demand for large-scale, private energy infrastructure. Partnering with GE Vernova and Engine No. 1, Chevron’s move reflects growing interest from hyperscalers as grid limitations intensify. Chevron’s experience operating remote power in Kazakhstan and Australia positions it to scale quickly, though its long-term commitment to power remains uncertain. As tech firms seek reliable energy, electrical equipment manufacturers may see increased opportunities in turbine installation support, transmission systems, and off-grid energy development.