Skanska has secured a $1.2 billion contract to construct four data centers in the United States for an undisclosed client.

      Skanska has secured a $1.2 billion contract to construct four data centres in the southeastern U.S., marking the largest single data centre contract the Swedish construction firm has disclosed. The client is a returning customer, although Skanska has not revealed their identity.

      The four facilities will encompass approximately 75,000 square meters, or about 808,000 square feet. Skanska’s responsibilities include building the exterior shell and the interior installations for technical areas, support spaces, and office areas. Construction is set to commence in the third quarter of this year, with completion anticipated in the third quarter of 2028.

      The contract, valued at around SEK 11.2 billion, will be reflected in Skanska USA’s order intake for the third quarter. In an industry where announcements often precede actual contracts, this detail is significant, as order bookings are subject to audit, unlike press releases.

      This type of contract is influencing the industrial supply chain, impacting suppliers from cable and conduit manufacturers to switchgear producers. This is also a factor behind Prysmian's $3.8 billion acquisition of Atkore earlier this year.

      Skanska has not disclosed the specific state, campus, or tenant associated with this project. Additionally, it remains unclear whether the four buildings will be located on a single site or multiple locations, which is an important aspect given the project’s magnitude.

      What is evident is the momentum building behind these contracts. Skanska has announced several U.S. data centre contracts this year, including a $255 million project in Georgia for a 22,700 square meter facility with five data halls, a $238 million continuation contract in Virginia, and a $94 million second facility on another Virginia campus.

      Some of these were subsequent contracts for projects already in progress, a common trend in the industry where clients often commission a second or third building while the first one is still being constructed. The southeastern contract, however, deviates from this norm by securing four buildings simultaneously.

      The scale of this contract comes at a time when the company has recorded its best quarter ever. In the second quarter, Skanska garnered SEK 68 billion in order bookings, a 20% increase year-over-year, with SEK 39.5 billion sourced from the U.S., and its backlog reached SEK 297.5 billion, equivalent to about 21 months of work.

      Currently, data centres represent roughly one-tenth of that backlog. CEO Anders Danielsson remarked that the 21-month backlog figure is “unusually high,” while CFO Pontus Winqvist cautioned that “one quarter does not establish a trend.”

      While a $1.2 billion order does not resolve Winqvist's concern, it does extend their momentum into the third quarter. The commitment to building four data centres with a 2028 completion date indicates a client’s confidence in future demand when the facilities are operational.

      Geographical considerations also play a role, as American secondary markets are utilizing capacity for similar reasons that have led European operators to exit the major five hubs, such as land availability, power allocation, and costs.

      Over the past two years, Skanska’s U.S. construction division has focused on this type of work, with the projects sharing common characteristics: a shell contract, fitting for technical and support areas, a start date within a quarter after signing, and no disclosed tenant.

      Confidentiality is customary in this sector. Hyperscale operators typically require such secrecy, which explains why a construction firm can announce a billion-dollar contract while not disclosing the identity of the tenant or the intended operations within the buildings.

      The announcement does not address power, water, or grid connectivity, which are three factors that have hindered completed buildings in other areas. Skanska’s role is that of the builder rather than the operator, with those responsibilities usually resting with the client.

      The company did not provide additional financial details, margin expectations for the contract, or any indication of whether further buildings on the same campus are under consideration. The third quarter will conclude at the end of September, when the order will be reflected in the financial records.