Turner Advances Plans to Become a Data Center Developer

Turner Development Co., the largest U.S.-based constructing contractor, is off to an excellent begin in 2025, pumping income into its company mother or father, ACS Group, within the first quarter of 2025 and advancing plans to capitalize on its expertise developing information facilities to grow to be a developer.

Juan Santa Maria, CEO of the Madrid-based mother or father, instructed analysts at a Could 13 earnings conference call that the information middle growth plan introduced final yr was shifting ahead. It includes Turner forming a 50% partnership to develop “from scratch” land and acquire permits and connections with a view to lease information facilities to “hyperscalers,” he mentioned.

Thus far Turner has $568 million invested within the enterprise, with the method of forming the partnership “nonetheless ongoing,” mentioned Santa Maria, “however till now, all [details of obtaining a partner are] very confidential.”

Hyperscalers of cloud computing companies typically embody corporations resembling Amazon, Microsoft and Google and people with cloud-based companies that contain synthetic intelligence.

ACS is majority proprietor of Hochtief, the Essen, Germany-based contractor that owns Turner, which ranks once more as No. 1 on the ENR Top 400 Contractors listing, and figures prominently within the mother or father’s monetary image.

Turner recorded $199 million in pretax revenue on income of $6.6 billion in its newest quarter, up 62.3% and 45.2%, respectively, from the identical quarter final yr, mentioned ACS Group. Progress in its current enterprise constructing information facilities, well being care, sports activities and academic services supplied a lot of the revenue and income, the agency mentioned. Turner’s 2024 acquisition of Irish electrical and mechanical engineer Dornan Engineering additionally added to the monetary excellent news.

Turner’s revenue margin elevated 3%, reflecting the corporate’s “profitable technique targeted on superior expertise initiatives,” ACS Group famous in its monetary report.

Final July, ACS Group announced it was integrating its North American civil engineering and development companies by combining the Dragados unit with Flatiron Development right into a single operation.