May 2026 Vol. 81 No. 5
Editor's Log
Data center boom ignites pipelines, fiber and power construction
By Robert Carpenter, Editor-in-Chief
(UI) — Spring has sprung. Summer has arrived. And the underground infrastructure is basking in the warm weather as construction season ramps up across every nook and cranny of North America.
For the domestic underground infrastructure industry, we’ve seen remarkable flexing of market muscle despite geopolitical churning seas. While increased fuel prices, concerns of possible supply bottlenecks and tariff impacts are frequent topics of conversation, those impacts in U.S. construction have been relatively nominal to date.
In mid-May, the Fiber Direct Conference attendance was projected to be up another 20 percent. This remarkable growth industry is showing no signs of slowing down for several years. (Underground Infrastructure is proud to be a sponsor of this event produced by the Fiber Broadband Association).
Oil and gas pipeline events were well attended over winter and spring months as anticipation – and launch – of active projects continues. More and more pipelines have been announced and stand a good chance of actually getting approved and to market before the end of the Trump administration. Most are gas pipelines largely driven by continued LNG export growth but now the data center evolution is having impacts on pipeline builds, as well. Oil pipelines are also beginning to emerge on the playing field.
This is a far cry from the pipeline depression caused by the President Biden administration. There is understandable concern about what could happen in the 2028 presidential election. I have no idea who the Democrats or Republicans will nominate for president nor how the two houses of Congress will be shaped by then. But in this anything-can-happen-in-politics era, we can’t take pipeline construction for granted. My advice: enjoy improved markets while we can for who knows what tomorrow will bring.
As mentioned, data centers are progressing from proposals to reality and are extremely hungry for fiber and power generation. And I haven’t seen electric markets this excited since … well … I don’t think I’ve ever heard so much positive market chatter since I took over as editor-in-chief of Underground Infrastructure in 1992.
Sewer, water and stormwater markets remain strong in 2026 though there is growing concern of what will happen as Infrastructure Bill monies run their course this year. With Trump’s budget plans to reduce funding of the Clean Water Act and state revolving loan funds, there is a sense among cities that 2026 may be their last hurrah for a while in terms of available federal funds.
States and even local communities have also been spending mightily the last few years for their infrastructure needs. And that is apparently the plan from the federal government – to let the states and cities take responsibility for their local infrastructure as the federal government can no longer afford discretionary funding to cities who have dug themselves into an infrastructure abyss and subsequent budgetary crisis. Cities and states are expected to step up and address their own problems without a helping hand extended continuously from the feds.
Admittedly, there’s a lot with that attitude that bears serious thought – and even acceptance to some degree. Infrastructure problems have been simmering for decades. Federal programs became an avenue to inject direct funding into states for dispersal to critical needs via State Revolving Loan Funds and EPA’s Clean Water Fund.
Now, there is a good chance that money will largely dry up as the Infrastructure Bill funds expire in 2026. Communities and states that were hooked on federal funding for answers to their infrastructure funding needs may now experience the end of their federal funding addiction if it is reduced to minuscule levels per current budget proposals.
But I wonder if cutbacks in sewer/water spending also equate to reductions in funding for local highways, bridges or airports? Or are sewer and water programs just convenient targets? Further, federal environmental and regulatory parameters have continued to cost cities/states vast amounts often without reasonable justifications. It makes work challenging, often delayed and all the while running up costs. Will the Trump administration continue its anti-red tape campaign in our markets as well? One can only hope.
It’s not just the federal funding programs that have created red tape. Cities and states must look in the mirror. The time involved in getting any infrastructure project going must wait for all kind of local rules, regulations and inspections to be met before shovels can turn dirt – and much of the time it’s all so unnecessary or exceedingly costly and time consuming.
When you add it all up, sewer and water projects have just as many – probably more – regulations, rules, inspections, etc. governing their industry as oil and gas pipelines. Fiber and electric builds are tightly regulated as well. In these days of construction pricing going up for all markets, barriers to growth need to be re-examined, adjusted and perhaps even eliminated. We can no longer afford the unnecessary time sink or bleeding away of precious funds.
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