Jacobs Solutions (J)
Engineering & consulting for mission-critical facilities.
- Ticker: J
- Sector: construction (engineering)
- DC exposure tier: mid
Jacobs Solutions (J) is a moderate-exposure data-center supply-chain name in the construction sector. Data Center Index tracks Jacobs Solutions's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Jacobs Solutions data center thesis
Jacobs Solutions is an engineering and program-management firm that designs mission-critical facilities (DCs, semiconductor fabs, biopharma, federal) and supervises construction. Backlog reached $19.0B in Q1 2026, up 25% YoY after spinning off Critical Mission Solutions, with the slimmer Jacobs now a higher-margin advanced-facilities design house.
Bull case
- Backlog hit $19.0B in Q1 2026 (+25% YoY) at a 24.8% gross margin; design-led revenue mix is structurally higher-margin than competitors who self-perform construction, and the hyperscaler design-award pipeline is in its early innings.
- Jacobs prices on rate cards with billable utilization as the lever; book-to-bill above 1.1 across mission-critical and advanced-facility verticals translates almost directly to revenue, with no fixed-price construction risk to absorb.
- Hyperscaler campus designs are getting more complex (liquid cooling, behind-the-meter power, on-site SMRs), and the engineering scope per MW is rising; Jacobs is a primary beneficiary of design-fee inflation per project.
Bear case
- Stock just printed at the 0.1st percentile of its 52-week range, down 1.6% YoY despite the broader DC tape ripping, signaling persistent investor skepticism about earnings power post-spin and ongoing portfolio reshuffling.
- Corporate restructuring and segment renaming has obscured the underlying earnings trajectory; until 2-3 clean quarters of organic growth print, the stock will not get a re-rating multiple.
- DC is one of several end-markets for Jacobs; federal/defense, water, transit also drive bookings and any softness in non-DC end-markets dilutes the AI-infrastructure narrative the bulls are paying for.
Data center exposure rationale
Critical Mission Solutions and PA Consulting do meaningful DC engineering work; DC is one of several named growth markets, not the dominant one.
Jacobs Solutions revenue and capex
In fiscal 2025, Jacobs Solutions reported revenue of $12.0B, capital spending of $79.2M and operating income of $863.6M.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $12.0B | $79.2M | $863.6M |
| 2024 | $11.5B | $121.1M | $692.4M |
| 2023 | $10.9B | $137.5M | $676.5M |
Tracked Jacobs Solutions data center projects
- Microsoft Fairwater Atlanta, 636 MW est., Fayetteville, GA · operational
- Microsoft Project Osmium, 190 MW est., West Des Moines, IA · operational
- Microsoft Fairwater Wisconsin, Mount Pleasant, WI · operational