Utility System Construction NAICS 2371

Jan 17, 2026 - Judges Rule Two Offshore Wind Projects Can Resume

• A federal judge ruled that construction on the $5 billion Empire Wind project off Long Island can resume, according to The New York Times. The decision was the second setback in a week for the Trump administration’s effort to halt five offshore wind farms on national security grounds. Judge Carl Nichols said the Interior Department’s stop-work order would cause irreparable harm and likely violated legal requirements for notice and due process. The decision follows a similar ruling that allowed Revolution Wind to continue building. Developers warned that delays threatened billions in contracts and critical equipment, while states argued the administration offered no evidence of security risks. The projects, worth $25 billion and expected to power millions of homes, had already cleared years of environmental review. Several developers and states continue to challenge the administration’s orders in court.
• Rising construction input prices are creating new pressure on the utility construction industry, which relies heavily on materials that have been hit hardest by recent tariffs, according to an Associated Builders and Contractors analysis of US Bureau of Labor Statistics data and Construction Dive reporting. November costs rose 0.6% over October, with year-over-year increases of 11.1% for switchgear and controls and 11.7% for copper wire and cable, all core components for power and grid projects. Aluminum mill shapes jumped 28% under a 50% tariff, while steel products used in transmission structures and substations also climbed. Industry economists warn that tariffs are driving costs faster than contractors can adjust bids, which rose only 2.7% over the past year. The uncertainty around future tariff impacts is making utility owners more hesitant to commit to major projects, raising concerns that 2026 could bring delays, tighter margins, and greater financial risk for firms building and maintaining critical energy infrastructure.

• 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, utility contractors may see increased opportunities in turbine installation, transmission systems, and off-grid energy development.
• In October, the Interior Department canceled Esmeralda 7, a massive solar project in Nevada that would have spanned 118,000 acres and powered nearly two million homes, according to The New York Times. Though the reason was not disclosed, the move aligns with the Trump administration’s broader efforts to slow renewable energy development on public lands, while encouraging oil and gas development and coal mining. The project, led by NextEra Energy and Invenergy, had advanced under the Biden administration but stalled after the Bureau of Land Management withheld its final environmental impact statement. Developers may reapply for permits, but delays are likely. Lawmakers and clean energy advocates expressed concern over new political reviews, which have disrupted wind and solar projects nationwide. The cancellation highlights growing tension between federal energy policy and climate goals.