Every June, EC&M unveils the results of its proprietary Top 40 Electrical Design Firms survey. After analyzing this year’s findings, presented in a special report written by veteran freelancer Tom Zind (starting on page 24), I couldn’t help but notice a recurring theme that seems to be reinforced not only in the electrical engineering sector but also in the broader engineering profession. Growth remains strong — key industry players answering our survey generated a combined $5.776 billion in electrical design revenue in 2025, up more than 10% from the previous year and reaching another record high for the survey — yet they are becoming increasingly selective and strategic about where they pursue that growth, inevitably placing bigger bets on vertical markets they believe will hit that sweet spot of stability, profitability, and long-term demand.
It comes as no surprise that the primary driver of growth among Top 40 respondents was data center construction. As I was writing this viewpoint, a notice ironically popped up in my email announcing that construction is underway on a new $16-billion data center in Michigan (The Barn in Saline Township), marking the largest economic investment in state history. Considering the legal battle that ensued following local opposition (which started with the township initially rejecting the data center, followed by the developer filing a lawsuit claiming the denial was illegal exclusionary zoning, and ending with a court-approved settlement that allowed the project to proceed with added conditions and community concessions), this project is a prime example of the debate over whether communities should accept large AI data centers and who should bear the costs of powering them. Again this year, more than half of responding firms identified data centers as one of their three hottest markets, while nearly half expect the sector to represent a significantly larger share of their workload in 2026. According to Faith Technologies Incorporated (FTI’s) Executive Vice President Wade Leipold, this segment isn’t showing any signs of slowing anytime soon. “There’s a lot of money behind this data center activity now, which is a major difference from other phases” of past manias, he said. “Even with a backlog, we don’t see anything tapering off at this point.”
That line of thinking aligns closely with the key takeaways from the ACEC Research Institute’s “Q2 2026 Engineering Business Sentiment Survey,” which identified data centers (+87) as the strongest-performing market across the engineering profession. “The sector is shifting from a growth posture driven by demand and labor constraints to one defined by cautious expansion, cost management, and strategic selectivity,” said ACEC Board Chair Steve Lefton in a recent press release. “Firms are healthy, and they’re planning to grow with greater discipline and a closer eye on the horizon.”
Just as AI is reshaping our work and our world, the electrical design market seems to be at an inflection point. As a growing share of business is becoming increasingly concentrated in power-intensive, technology-driven mission-critical sectors, the demand for electrical expertise will only increase. I thought Nicki Sparks, principal and electrical engineering leader at HED, captured this sentiment especially well. “Energy nodes will become more critical, and that means staff must be open to different perspectives and ways of thinking,” said Sparks. “You can’t be black or white on electrical design anymore, except when it comes to safety.”
