Electrical Contractors NAICS 238210

Jan 10, 2026 - Improved Residential Efficiency Could Offset Data Center Load Impacts

• A preliminary analysis from energy policy firm AnnDyl finds that a 200 MW data center could offset about 10% of its peak load by investing $50 million in residential efficiency upgrades, including smart thermostats, insulation, and air and duct sealing in nearby homes, according to Utility Dive. Modeled in Ohio’s capacity-strained PJM region, the upgrades would also generate roughly $3 million in annual customer savings and create more than 200 jobs. The study builds on Rewiring America’s broader research, which shows that hyperscalers could offset up to one-third of future capacity needs through large-scale residential electrification, such as subsidizing heat pumps, rooftop solar, and battery storage. While the AnnDyl package cannot fully counter a data center’s load, both reports highlight growing interest among tech companies in community-focused investments that ease grid strain, reduce emissions, and help address the rising public pushback against data center development.
• Home builder confidence in the single-family market increased in December but remained solidly in negative territory as builders face ongoing headwinds, including high construction costs, tariffs, and economic uncertainty, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose one point to 39 in December 2025. Any HMI reading over 50 indicates that more builders see conditions as good than poor. Builder confidence readings remained below 50 for every month in 2025 and were in the high 30s in the fourth quarter. The HMI survey also showed that 40% of builders reduced home prices in December to lure potential buyers off the sidelines, and the average price reduction was 5%, down one percentage point from November.

• Demand for building design services declined in November from the prior month, marking the thirteenth consecutive month of weak architectural billings, according to a December report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 45.3 compared to October's reading of 47.6. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 51.4 in November from 54.8 in October, and the new design contracts index dropped to 42.7 from 47.1. The AIA’s Chief Economist, Kermit Baker said, "Weakness in business conditions at architecture firms continues to be widespread, with declining billings across all major specializations and in every region except the Midwest. However, inquiries for new projects continued to increase, and design activity at firms in the Midwest – a region that traditionally has had a disproportionate share of manufacturing activity – appears to have hit its bottom for this cycle and is expected to continue to improve."
• An artificial intelligence investment boom is fueling demand for massive data centers, creating lucrative opportunities for construction workers, according to The Wall Street Journal. Tradespeople, such as electricians, welders, and project managers, are earning 25% to 30% more than they did before as tech giants like Amazon, Google, and Microsoft expand their networks. Workers report newfound stability and perks, as contractors face an estimated nationwide shortage of 439,000 workers, according to the Associated Builders and Contractors. Staffing gaps have disrupted more than half of data-center projects, and backlogs average nearly 11 months. Despite the strain, the surge has transformed lives, drawing apprentices into unions and prompting companies to hire remotely to meet demand. For many, the boom offers higher pay, job security, and opportunities that were once elusive in the construction industry.