Private equity activity in the construction and engineering sector reached a record 529 deals in the second quarter of 2026, marking a 56.5% increase from a year earlier. This surge is primarily fueled by the boom in AI data center development. Data center construction spending alone rose 46% year-on-year in June, while private nonresidential spending excluding data centers fell 7.9%. Specialty trades vital for data center infrastructure, such as HVAC and electrical contractors, are also seeing record PE deal volumes in the first half of 2026.