Ride This Infrastructure Supercycle Play to Profitable Growth

Here's one infrastructure play that's set to takeoff as manufacturing projects take center stage.

Before we dive into this month’s Premium issue, we want to say thank you again for being a part of this journey with us. As volatility, shifting geopolitical landscapes, and rapidly changing news developments continue – we remain focused on our long-term philosophy here at Prinsights of researching and supporting investment ideas focused on real tangible things, not noise. And we’ll ensure that’s our true north star in all the opportunities we share with you in the months and years ahead. The in-depth analysis detailed below does just that.

“Scientists investigate that which already is. Engineers create that which has never been.” –Albert Einstein

The Architecture, Engineering, Construction, and Operations (AECO) industry is destined for major growth in 2025. A confluence of factors, including AI, technology, national security, sustainability, and global infrastructure competition challenges, are contributing to this growth.

The expiration of the Infrastructure Investment and Jobs Act in September 2026 presents an opportunity for the White House to put its stamp on future infrastructure policies.

Here’s what we know so far.

During Trump's first term, the White House placed a strong emphasis on revitalizing U.S. infrastructure. Trump's America First plan included enhanced tax breaks and streamlined permitting processes.

President Trump’s first term plan to rebuild American infrastructure contained six principles:

1. Stimulate infrastructure investment: Invest $200 billion in Federal funds to spur at least $1.5 trillion in infrastructure investments with partners at the state, local, Tribal, and private levels.

2. Invest in rural America: Invest $50 billion in Federal funds to rebuild and modernize infrastructure in rural America.

3. Increase state and local authority: Enable an outward ability to invest and jumpstart permit decisions.

4. Eliminate regulatory barriers: Provide needed flexibility for projects to be developed and managed effectively and efficiently.

5. Streamline permitting: Shorten the permitting process.

6. Empower American workers and create long-term jobs.

We expect that new White House policies will also strive to limit regulations and permits while also easing approvals for new construction projects. That's positive news for engineering and manufacturing contractors in several areas and for investors looking to tap into the momentum.

Manufacturing Projects Take Center Stage

Private companies have invested over $988 billion to revive American manufacturing. These projects span multibillion-dollar biotech facilities, chip fab plants, and battery factories.

During his first term, Trump’s America First plan provided enhanced tax breaks and streamlined permitting processes for manufacturing plants. These measures were designed to reduce barriers, boost domestic production, and elevate the U.S. as a global leader in the manufacturing space.

Below, we’ve detailed five core sectors set to benefit.

Roads and Bridges

According to Alex Etchen, vice president of government relations with Associated General Contractors of America, the Trump 2.0 administration will place “a greater focus on more traditional infrastructure like roads and bridges.” And while the Infrastructure Investment and Jobs Act (IIJA) remains intact, there’s every reason to believe that material parts of the law to support roads, bridges and airports should remain.

Data Centers

According to the Associated General Contractors of America's annual survey, data center construction growth is expected to hit new heights in 2025. Indeed, about 42% of contractors surveyed, up from 20% last year, expect the value of projects in the sector to be higher in 2025. Already, tech firms like Microsoft, Meta and Amazon are spending tens of billions of dollars in data center development in 2025. Meanwhile, cities like Atlanta are looking to build a $17 billion data center campus.

Big Tech Companies

We are already seeing evidence from the Washington, D.C. beltway to support this growth.

Last month, the White House announced a new partnership with big tech companies OpenAI, Softbank, and Oracle, called Stargate. The plan entails an investment of $100 billion in artificial intelligence infrastructure in 2025, which could grow to $500 billion by 2028.

Trump called the initiative essential to keeping the U.S. ahead in AI innovation.

He also pledged to fast-track permitting and support energy projects to power data center builds.

Even before the announcement of Project Stargate, data center construction was a top construction market focus, with significant growth forecast for 2025 and beyond.

Energy Projects Powering AI

Growth in the data center sector will also boost power sector activity and construction.

According to the Department of Energy, U.S. data center energy consumption could triple in the next three years and use as much as 12% of national energy.

As the DOE said, “This surge in energy demand is fueled by trends such as the explosive growth of AI, the expansion of cloud computing, and ongoing advancements in digital transformation.”

On day one, Trump declared a national energy emergency. His goal is to hasten the development of certain energy projects, especially fossil fuel facilities. That would benefit new data enter development.

As Trump said, “They have to produce a lot of electricity and we’ll make it possible for them to get that production done very easily.”

AI in AECO

Artificial intelligence (AI) has advanced at a rapid clip. And while its impacts are felt across industries, the AECO sector is on an explosive path of transformation. The industry was valued at around $12 trillion in 2023, a figure expected to double over the next five years.

Leveraging AI technologies can help solve the sector's most pressing problems to date, while building out real, tangible solutions for the future.

Precedence Research

And this brings us to our recommendation for this month.