EMCOR Group (EME)
Largest mechanical/electrical contractor in US. Major DC facility builder. Complements Quanta on the mechanical side.
- Ticker: EME
- Sector: construction (epc mechanical)
- DC exposure tier: mid
EMCOR Group (EME) is a moderate-exposure data-center supply-chain name in the construction sector. Data Center Index tracks EMCOR Group's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
EMCOR Group data center thesis
EMCOR is the largest US mechanical and electrical contractor, doing the inside-the-building work (switchgear installation, conduit, chilled-water piping, fire suppression) that turns a DC shell into a live mission-critical facility. Backlog hit $15.6B in Q1 2026, up 32.9% YoY, with Network/Communications and Industrial segments leveraged to hyperscaler awards.
Bull case
- Backlog grew to $15.6B in Q1 2026 (+32.9% YoY) with five consecutive quarters of 28%+ growth; revenue scaled from $14.6B to $17.0B in 2025 and operating margin expanded to 10.1% as gross margin reached 19.33%, structurally better mix vs 14.5% in 2022.
- Mission-critical electrical scope is a margin pool; book-to-bill above 1.2 sustains for 18+ months and EMCOR's national footprint lets it absorb mega-projects competitors cannot self-perform.
- Hyperscaler facility starts are accelerating into 2026-2027; every 1MW of IT load needs roughly $3-5M of M&E install scope, and the named DC backlog inside Network/Communications is the cleanest pure-play exposure in the contractor universe.
Bear case
- Stock is at the 94.1st percentile of its 52-week range after a 110% one-year run, trading at a peak-cycle EV/EBITDA multiple; any margin slip on a fixed-price job re-rates it sharply.
- Skilled-trades labor (electricians, pipefitters) is the binding constraint; wage inflation and union-hall throughput cap how much backlog converts to revenue, and undisciplined bidding erodes the 19% gross margin.
- Concentration risk: a few hyperscaler clients drive an outsized share of the named DC backlog; a pause from one customer (utility-interconnect delay, site re-sequencing) leaves capacity stranded.
Data center exposure rationale
Mechanical and electrical contractor with named DC backlog; Network and Communications segment plus Industrial are heavily DC-tied but other end-markets dilute.
EMCOR Group revenue and capex
In fiscal 2025, EMCOR Group reported revenue of $17.0B, capital spending of $112.8M and operating income of $1.7B.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $17.0B | $112.8M | $1.7B |
| 2024 | $14.6B | $75.0M | $1.3B |
| 2023 | $12.6B | $78.4M | $875.8M |
Tracked EMCOR Group data center projects
- AWS Project Rainier (New Carlisle), 2.2 GW est., New Carlisle, IN · operational
- Meta Prometheus, 1 GW, New Albany, OH · operational
- Azure Northern Virginia, 1 GW est., Northern Virginia, VA · operational
- Amazon Mattameade Tech Campus, 770 MW, Woodford, VA · permitted
- Google New Albany, 250 MW, New Albany, OH · operational