Jacobs Posts Strong Q3 on Data Center Surge, AI Partnership with Nvidia

Jacobs, the Dallas-based engineering and construction giant, is riding a wave of demand in high-growth sectors — from advanced data centers to life sciences — even as parts of the construction industry slow under political and economic uncertainty.

On its fiscal third quarter earnings call Tuesday, CEO Bob Pragada emphasized that data center construction is now one of the company’s fastest-growing areas.

“The number of inquiries, as well as engagement we have, have grown substantially,” said Pragada. “[It’s] the highest that they’ve been this quarter.”

AI-Driven Data Centers at the Core

One of the most notable drivers is Jacobs’ new partnership with Nvidia, announced in May. The collaboration will focus on creating digital twins for artificial intelligence data centers — virtual replicas that allow engineers to simulate, test, and optimize facilities before breaking ground.

Pragada described the initiative as a breakthrough:

“This opportunity with Nvidia is pretty transformational. This will be the plan of record that Nvidia will give to their customer base using the Nvidia chip, which we’re already getting inquiries from those customers back into Jacobs. We’re excited.”

Through the partnership, Jacobs will develop an end-to-end design blueprint that could become a global reference for Nvidia’s customers. The digital twin approach allows for physically accurate virtual environments that streamline engineering, reduce risks, and cut costs.

Big Wins in the Data Center Space

Beyond Nvidia, Jacobs recently secured a major contract with a confidential client to convert a legacy manufacturing facility in the Southeast U.S. into a high-performance, vertically integrated data center.

“We captured meaningful scope on this program by leveraging our cross-sector capability,” said Pragada. “And we are seeing more and more opportunities like this in the market.”

This move aligns with a broader industry trend toward edge computing and AI-ready infrastructure, as enterprises seek to reduce latency and handle exploding data workloads.

Diversified Growth Across Multiple Sectors

While advanced facilities remain a highlight, Jacobs is also seeing momentum in life sciences, semiconductor, energy, power, and water infrastructure.

Water projects in particular are proving to be resilient. The company recently won more work at the Little Miami Wastewater Treatment facility in Cincinnati — part of a multi-year modernization program — and expects additional long-cycle infrastructure contracts in 2026.

In the consulting space, PA Consulting, Jacobs’ management and strategy arm, recorded a 15% revenue jump in Q3, driven by public sector demand and private sector transformation projects.

Weathering Political and Economic Uncertainty

Pragada acknowledged that political uncertainty has cooled some areas of the U.S. construction market but stressed that Jacobs’ portfolio is insulated by its focus on high-demand, mission-critical projects.

“We’re seeing sector growth drivers in life sciences, semiconductor, data center, energy and power and water sectors that have resulted in continued upward trends in spending across our business,” he said. “We continue to manage well through an uncertain economic backdrop.”

The recently passed One Big Beautiful Bill — a sweeping infrastructure and spending package — is also seen as a net positive, even with some state-level budget tightening. Pragada noted that only about one-third of Infrastructure Investment and Jobs Act funds have been spent, meaning federal disbursements should provide steady opportunities well into FY 2026.

Q3 Financial Performance

Jacobs reported:

• Profit: $179.61 million — up 22.2% from $146.93 million in Q3 2024.
• Revenue: $3.03 billion — up 5.1% from $2.88 billion last year.
• Backlog: $22.69 billion — a 14.3% increase from $19.86 billion a year earlier.

Analysts have responded positively.

“Jacobs reported a solid quarter, underpinned by disciplined cost controls and healthy growth in both its infrastructure and advanced facilities and PA Consulting segments,” said Faisal Hersi, equity analyst at Edward Jones. “We see healthy momentum across key areas of Jacobs’ business, including life science, water and data centers, which should drive further growth.”

Looking Ahead

With cloud computing, AI adoption, and semiconductor investment accelerating globally, Jacobs’ strong foothold in advanced facilities positions it to capture market share even if broader construction demand remains uneven.

Pragada expressed confidence that Q4 will mirror Q3’s momentum — if not surpass it — as AI infrastructure demand expands and infrastructure spending ramps up in both the U.S. and Europe.

Originally reported by Sebastian Obando in Construction Dive.