Weekly Briefing: May 1, 2026
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Week of April 27, 2026
Data Center Construction Growth Is Outpacing Insurance Capacity
Investments in data centers continue to grow at unprecedented levels, with annual investment projected to exceed $300 billion in 2027 and individual campuses reaching $10 billion to $30 billion in total insurable value. The insurance market is struggling to keep up with this fast-paced growth, which is breaking the industry norm of insuring projects to full replacement value.
Insurers are increasingly underwriting these projects on probable maximum loss rather than total project cost, requiring the use of detailed risk modeling across multiple scenarios. This is leading the insured portion to reach only a third, or at most half, of total value, with the remaining exposure retained by developers.
To attempt to absorb the gap in coverage, contractors and owners are utilizing layered insurance programs, quota-share participation, and phasing endorsements that shift coverage as portions of the project are completed. However, the complexity of data centers, compressed preconstruction timelines, and evolving project schedules and scopes make it harder to structure and maintain project-specific insurance programs quickly and effectively.
There are also concerns that the concentration of assets is creating higher and overlapping risk exposure, as a single event could create significant losses across multiple projects, with multiple stakeholders seeking coverage at one hyperscale campus. While the sector has not yet seen a major hyperscale loss, a single data center could generate close to $10 billion in natural catastrophe losses, which would likely make insurers even more cautious.
Trump Administration Dismisses National Science Foundation Board
The Trump administration fired all 22 current members of the independent National Science Board, which oversees the National Science Foundation and has helped support critical independent, peer-reviewed research tied to national health, defense, and welfare.
NSF-funded research has helped engineers design and protect safer infrastructure, including advancing knowledge of how buildings, roads, bridges and other assets can better withstand extreme weather, seismic events, and long-term use.
American Society of Civil Engineers President Marsha Anderson Bomar stated that this decision threatens the advancement of “American innovation, resilience and safety,” noting that NSF-backed research plays a direct role in strengthening the built environment.
The loss of NSF board leadership raises concerns that disruption to federal research funding and oversight could slow progress on resilient design, infrastructure safety and future engineering standards.
April 27, 2026
Fusion Capital Partners (Fusion), a California-based private investment firm specializing in engineered products and essential services within the industrial sector, has acquired AQUALIS, a North Carolina-based stormwater and wastewater management firm serving commercial, industrial, and municipal clients. The acquisition expands AQUALIS’ support, enabling them to continue building their strongest service offerings while increasing growth in other key areas. “The water management ecosystem has been a priority focus area for Fusion for several years,” said Jeff Chaney, Principal & Co-Founder of Fusion. “The importance of stormwater and wastewater infrastructure continues to rise, driven by aging assets, increased regulation, and weather volatility. As this complexity increases, customers are seeking a strategic partner, positioning AQUALIS as a natural solution. We believe our experience in the space can help accelerate the Company’s growth into a leading middle-market platform.”
April 28, 2026
HOK, a Missouri-based design, architecture, engineering, and planning firm, has acquired ROSSETTI, a Michigan-based architecture firm specializing in sports venue design and renovation work. This acquisition brings significant technical expertise and brand recognition to HOK’s sports, recreation, and entertainment practice. “HOK has built a strong global sports practice over time. This partnership accelerates that trajectory with a firm whose expertise, culture and client relationships are exceptionally aligned with our own,” commented Eli Hoisington, Co-CEO of HOK. “This strengthens every dimension of our Sports + Recreation + Entertainment practice while establishing a home in Detroit, a market we believe in deeply. We’re excited to welcome ROSSETTI’s people and give them a global platform for the work they’ve always done best.”
April 28, 2026
Consertus, a Florida-based firm that delivers integrated digital, advisory, delivery, engineering, and design solutions, backed by RTC Partners, has acquired Laceco, a Lebanon-based architecture, engineering, and planning consultancy. This acquisition will expand Consertus’ reach in the Middle East and North Africa while bringing technical expertise in planning, architecture, engineering, and project and construction management. “Laceco is an exceptional addition to Consertus,” said Roy Block, CEO of Consertus. “Their technical expertise, long-standing client relationships, and track record of complex project delivery strengthen our ability to provide integrated solutions across the project lifecycle. Laceco’s regional presence and technical depth strengthen our capabilities and position the company for continued growth. We look forward to partnering with their team to expand in key markets.”
April 29, 2026
Arlington Capital Partners (Arlington), a Washington, D.C.-based private investment firm specializing in government regulated industries, has acquired ENERCON, a Georgia-based specialized engineering firm with a focus on nuclear and other regulated power end markets, from funds managed by Oaktree Capital Management. As part of the transaction, ENERCON will merge with Arlington portfolio company Pond & Company (POND), a Georgia-based full-service consulting firm providing integrated engineering, architecture, planning, and construction management solutions for public and private clients. The acquisition and subsequent merger bring together two firms with complementary services, highly technical staff, and overlapping end-market clients, positioning the combined firm to capture increasing demand for power and energy. “Together, POND and ENERCON will broaden market access and enhance our ability to serve clients,” said Bob Williams, CEO of POND. “We are excited about the opportunity ahead as demand continues to outpace supply across the energy industry. POND also has a significant presence and an exceptional reputation in the life sciences, government, and infrastructure markets, where it will continue to serve clients as POND — an ENERCON company.”
April 29, 2026
Engineering Resource Group (ERG), a Mississippi-based MEP engineering, consulting, and design firm, backed by Godspeed Capital Management, has acquired Haltom Engineering, a Tennessee-based engineering consulting and design firm specializing in mechanical, plumbing, and fire protection systems. The acquisition expands ERG’s service and geographic offerings, enabling them to enter their next stage of growth. “ERG is the ideal partner for our next phase of growth,” stated Jeff Haltom, founder of Haltom Engineering. “This combination allows us to continue delivering the specialized services our clients rely on, while gaining access to additional resources and support. We look forward to working with the ERG team to build on our position as a differentiated provider of mechanical, plumbing, and fire protection design services, now with greater scale.”
May 1, 2026
IMEG, an Illinois-based full-service engineering and design firm, has acquired AGM Energy Services, an Ohio-based firm that specializes in commissioning, master systems integration, and criteria engineering, and Palmer Conservation Consulting, an Ohio-based energy management firm. Together, both firms will bring additional comprehensive energy management, market advisory, and efficiency-focused services to IMEG’s existing capabilities. “By bringing AGM Energy Services and Palmer Conservation Consulting into IMEG, we are significantly strengthening our performance and energy platform and expanding the depth of expertise we bring to clients,” commented Paul VanDuyne, CEO and President of IMEG. “This integration allows us to better connect energy strategy with building systems and operations—delivering smarter, more sustainable outcomes and long-term performance.”
Baxter & Woodman team members took part in their annual spring cleanup by participating in the McHenry County Division of Transportation Program. The program brings volunteers together to pick up litter along county highways, helping keep the area clean and safe. This effort aligns with the firm’s dedication to the Baxter & Woodman vision of making lives better by caring, giving, and serving, and reflects its continued commitment to integrity and goodwill.
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 Clay Han at chan@efcg.com.