Weekly Briefing: July 10, 2026
- 5 days ago
- 5 min read
Week of July 6, 2026
PFAS Treatment and Infrastructure Funding Dominate Water Utility Concerns
At the American Water Works Association’s ACE26 conference in Washington, D.C., utility managers and engineering consultants identified PFAS treatment and project funding as two of the sector’s most pressing concerns with already cash-constrained utilities having to balance competing demands.
AWWA estimates that U.S. drinking water utilities will require between $2.1 trillion and $2.4 trillion in infrastructure investment through 2050, leaving an annual funding gap of approximately $56.6 billion.
EPA assistant secretary for the Office of Water Jess Kramer said the agency plans to streamline the distribution of federal funding, noting that $14.8 billion within the State Revolving Fund loan program remains uncommitted to projects.
EPA has proposed allowing eligible systems to seek a two-year extension, from 2029 to 2031, to meet federal PFOA and PFOS limits, but the extension would not be automatic and may not supersede applicable state requirements. At the same time, contaminants such as microplastics could face future regulations. For utilities and engineering firms, shifting deadlines and evolving standards make it more difficult to schedule projects and allocate limited capital.
States Compete for AI Data Center Investment as Infrastructure Constraints Intensify
Supporting AI data center development requires a combination of abundant water resources, state-certified shovel-ready sites, affordable electricity, and sufficient grid capacity, making infrastructure a key differentiator as states compete for new projects.
CNBC identified Tennessee, Pennsylvania, South Carolina, Michigan, New York, Arizona, Indiana, Ohio, Virginia, and Illinois as states well positioned to support AI-related development.
Various states remain highly optimistic about the economic opportunities associated with AI infrastructure. Tennessee, for example, established the AI Tennessee initiative to coordinate government, industry, and academic efforts, while South Carolina, Michigan, and Virginia are committing significant resources to shovel-ready site programs.
However, public and political opposition is intensifying as communities weigh investment and job creation against concerns over electricity demand, water use, land development, grid reliability, and ratepayer costs. Opposition has emerged in Michigan, some Virginia municipalities are considering restrictions, and Illinois and Arizona have paused certain data center tax incentives. These competing priorities may create a less predictable environment for utilities and AEC firms.
July 1, 2026
EFCG, through its registered broker-dealer affiliate EFCG Transaction Services LLC, is pleased to share that our client, New Mountain Capital, LLC (“New Mountain”), a leading growth-oriented investment firm, announced that funds managed by New Mountain have made a majority investment in SAM, a leading independent provider of mission-critical geospatial and inspection services to the utility and critical infrastructure markets, acquiring the ownership interest of Peak Rock Capital, the majority investor in SAM since 2021.
“New Mountain has had a multi-year focus on geospatial services as part of our long-standing sector effort in infrastructure services and technology, and we are proud to partner with SAM. We look forward to supporting the Company, both organically and through strategic acquisitions, in this next phase of growth,” said Joe Walker and Lars Johansson, Managing Directors at New Mountain.
EFCG served as financial advisor to New Mountain.
July 8, 2026
EFCG, through its registered broker-dealer affiliate EFCG Transaction Services LLC, is pleased to share that our client Verdantas, a Sterling Investment Partners-backed leader in digitally enabled technical consulting for the environment, water, and energy transition markets, announced its acquisition of American Engineering & Environmental Consultants (AEEC), a technology-driven environmental engineering and consulting firm headquartered in Reston, Virginia with capabilities spanning digital transformation, environmental engineering, and advanced data solutions. The addition of AEEC strengthens Verdantas’ ability to deliver integrated solutions that combine engineering, environmental services, and custom digital build and advisory, while expanding its presence across federal and commercial markets.
“When we think about where our industry is going, it’s clear that engineering and environmental services are only part of the solution. Our clients and people need better ways to use data, make decisions, and manage projects. What stands out about AEEC is how they apply technology in a practical way. Their work is focused on helping clients make better decisions, move faster, and manage assets more effectively, whether that’s through smarter use of data, automation, or AI-enabled tools that improve how projects are delivered over time,” said Jesse Kropelnicki, CEO of Verdantas.
EFCG served as advisor to Verdantas on the transaction.
June 30, 2026
Hennick & Company (HennickCo), a Canada-based long-term investment firm focused on consulting, advisory, and professional services businesses, has completed a strategic partnership with PAE Engineers (PAE), an Oregon-based engineering and design firm specializing in sustainable building systems, regenerative design, and high-performance engineering. This partnership provides PAE with additional resources to expand its geographic footprint, strengthen its technical capabilities, and pursue strategic acquisitions, while maintaining the firm’s employee-first culture and longstanding commitment to sustainability. “PAE has built a remarkable reputation by combining technical excellence with a genuine commitment to improving how buildings perform,” said Bradley Hennick, Managing Director of HennickCo. “The firm's culture, leadership and long-term vision align closely with our own.”
July 1, 2026
Atwell, a Michigan-based consulting, engineering, and construction services firm, backed by Advent International, has acquired NEI Electric Power Engineering (NEI), a Colorado-based multidisciplinary engineering and consulting firm specializing in transmission engineering, substation design, and power systems engineering. This acquisition creates an integrated national platform serving the rapidly growing power and energy infrastructure market, combining Atwell's land development, environmental, and program delivery capabilities with NEI's expertise in transmission, substations, renewable interconnections, and power systems engineering to support data center development, grid modernization, and the energy transition. “NEI has built a remarkable organization known for technical excellence and solving complex power engineering challenges,” said Matthew C. Bissett, President and CEO of Atwell. “By combining NEI’s expertise in transmission, substations, renewable interconnections, and power systems engineering with Atwell’s capabilities in land development, permitting, surveying, environmental, and program delivery, we can move a project from raw land to an energized grid as a single integrated team.”
July 8, 2026
Salas O'Brien, a California-based employee-owned engineering and technical consulting firm, backed by Blackstone, has acquired DWG Consulting Engineers (DWG), a South Carolina-based engineering design firm specializing in mechanical, electrical, and plumbing services. This acquisition strengthens Salas O'Brien's presence in coastal South Carolina, expands its multidisciplinary engineering capabilities, and enhances its ability to serve clients across healthcare, education, commercial, hospitality, and municipal markets. “DWG has built an outstanding legacy in coastal South Carolina by putting people first and delivering dependable engineering solutions,” stated Darin Anderson, Chairman and CEO of Salas O’Brien. “Together, we will expand what we can offer our clients and create new opportunities for our team while preserving the local relationships that have made DWG successful.”
Terracon, a Kansas-based, employee-owned engineering consulting firm, partnered with the America 250-Ohio Commission and the Ohio History Connection to create a statewide system for identifying and documenting the graves of Revolutionary War veterans across Ohio. Many graves had never been documented, had deteriorated, or had been lost to time or development, prompting the organizations to establish a single, publicly accessible record ahead of the nation’s 250th anniversary. The team developed an app that enabled public researchers to document grave locations, capture photographs, record inscriptions, and submit GPS coordinates using standardized forms. Hundreds of volunteers responded, documenting thousands of grave markers across the state, while Terracon reviewed, validated, and organized the submitted information. As of June 2026, the final resting places of nearly 4,500 Revolutionary War service members had been documented throughout Ohio.
The EFCG Weekly Briefing summarizes the week’s key news in the AEC industry, including M&A updates, and micro- and macro-trends, aggregated from industry-focused and global news sources.
To send any additional press releases or news from your firm that you would like us to share please email Fatima Moumen at fmoumen@efcg.com.