Midterms cloud outlook for data center construction, transportation bill
The results of the midterm elections mean more scrutiny on
the data center boom and a probable delay to a long-awaited federal
transportation bill, industry sources say.
A blue wave launched Democrats to successfully flip control
of both the House and the Senate on Tuesday night. Analysts called it a “rebuke”
of President Donald Trump’s agenda.
Democrats, in particular, pushed for data
center moratoriums at the state level, said Daniel Fisher, senior vice
president of government and external affairs at the Associated Equipment
Distributors trade group. He anticipates projects hitting more hurdles now due
to voters embracing that push.
“I’d expect many planned data center projects to be put off
or delayed,” Fisher told Construction Dive.
Still, Fisher said those changes minimally impact total
demand for data center construction.
“However, at the end of the day, Democrats and Republicans
must recognize the economic impact of data center construction and associated
energy projects, and the importance to the country’s ability to compete in the
global AI race,” Fisher said.
The widespread Democrat victory nonetheless increases the likelihood
of policy changes around data center projects. The changes could ultimately
add costs, delays and uncertainty to an important construction growth source,
said Michael Guckes, chief economist at ConstructConnect.
Nevertheless, due to the size and scope of the boom to date,
Guckes also expects strong
demand to persist around these facilities.
“A change in Congressional control would not, by itself,
imply a halt in data center construction,” Guckes told Construction Dive.
“[Policy changes] would not change the fact that data centers represent an
important change to the future of how work will be done, nor does it change
AI’s importance to the future of national security.”
Related to data centers, there is also an immense opportunity
in grid buildouts, said Kristen Swearingen, vice president of government
affairs at Associated Builders and Contractors. She agreed momentum in the
sector will persist.
“It heightens the prospect for moratorium discussions in states like Texas and Michigan, but it doesn’t change what is coming either way,” said Swearingen. “Many governors and their administrations, regardless of party, are seeking to lead on regulatory frameworks around data center construction that aim to address constituent concerns, while hopefully looking to maximize benefits from the boom for workers and the economy.”
On the other hand, temporary pauses help communities prepare
for data center development, said Daren Shumate, founder of data center
engineering firm Shumate Engineering and a former Fairfax County, Virginia,
planning commissioner.
Moratoriums give local governments time to update zoning
requirements to address concerns such as noise and water demand, he said. Some
rural areas, Shumate added, have never faced this type of industrial demand in
their history.
“The organic demand for AI and the data centers that support
it is so strong that the buildout will continue without missing a beat,” said
Shumate. “The key is for local governments to meet the moment and protect their
communities without missing out on the economic benefits provided by such
projects.”
A longer wait for transportation funding
Congress will need to make a decision on the surface
transportation bill by Dec. 11, whether that is a short-term extension or
the passage of the BUILD America 250 Act, said Fisher.
With the massive Democrat electoral victory, however, it now
seems unlikely lawmakers will pass a surface transportation bill this year, he
added. Winning representatives and senators will be sworn in in January, so
current members will likely wait until then to discuss the surface
transportation bill.
“Democrats will be content with extending the current law so
they can draft a bill more to their liking,” said Fisher. “I do think Democrats
will prioritize a surface transportation bill next Congress.”
Swearingen agreed “it is likely to be extended with full
government funding into 2027.” However, the move does not ultimately provide a
stable planning horizon for contractors, said Fisher.
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“The failure to enact a long-term surface reauthorization
bill means a lack of clarity on the future of federal funding for
infrastructure projects across the country,” said Fisher. “State departments of
transportation don’t have the certainty to begin major projects and contractors
won’t be confident of future work.”
The Infrastructure Investment and Jobs Act raised average
annual federal highway funding by about 62% and public transit funding by about
67% in nominal terms compared with the preceding authorization, said Guckes.
“With current authorizations nearing expiration, Congress
will have to decide whether to maintain, increase or restructure those
commitments,” said Guckes. “History suggests that regardless of party control
funding will likely be maintained or increased.”
Pharmaceutical giant Pfizer to invest $650 million in new Groton manufacturing center
Pharmaceutical giant Pfizer will build a “Manufacturing
Technology Center” at its research-and-development campus in Groton, a project that will
involve a $650 million capital investment in the next five years, Pfizer and
economic development officials announced Thursday.
The approximately 220,000-square-foot facility will “produce
clinical active pharmaceutical ingredients and drug products that support
Pfizer-sponsored clinical trials around the world,” according to a news release
issued by the economic-development
nonprofit AdvanceCT. Construction is expected to begin in the second
quarter of 2027, with the goal of “operational startup” in mid-2031.
“Pfizer has a long and proud history of scientific
innovation in Groton, where many of the discoveries that advance our pipeline
begin,” Raja Mangipudy, Pfizer’s Groton site head, said in a written
statement included in the news release. “Building on that legacy, the new
Manufacturing Technology Center will advance our ability to support clinical
research and the development of new medicines for patients around the world.”
The announcement from AdvanceCT also noted that the new
center will “consolidate employees currently working in other facilities across
the Groton campus into a modern, purpose-built center.”
“Pfizer’s decision to make this major investment in Groton
demonstrates the continued value of the highly specialized
research-and-development capabilities that have been built here,” AdvanceCT CEO
and President John Bourdeaux said in a written statement. “The Manufacturing
Technology Center will connect scientific discovery with the advanced
manufacturing capabilities needed to support clinical trials around the world.
It is a significant vote of confidence in Groton, its workforce and
Connecticut’s ability to support biopharmaceutical innovation at a global
scale.”
No state funding will be allocated for the Manufacturing
Technology Center, according to AdvanceCT officials.
The Groton campus, which encompasses 2.17 million square
feet of lab and office space on 175 acres, was established in 1959, according to Pfizer’s website.
Its operations include clinical development and operations, global clinical
supply, drug safety, medicine design, pharmacokinetics, dynamics and
metabolism, as well as pharmaceutical sciences.
“Many of the discoveries and innovations that power Pfizer’s
pipeline originate in the world-class research-and-development laboratories in
Groton,” the website states. “Nearly every Pfizer medicine is developed, in
part, at this site.”
As of last year, Pfizer had about 4,000 employees in Groton,
ranking as the third largest employer in Groton, according to the Town of
Groton’s annual comprehensive financial report for the 2025 fiscal year. The
company also ranks as the second largest local taxpayer, with taxable assessed
value of about $365 million, according to the report.
A message left for Pfizer that inquired how the
Manufacturing Technology Center would affect the company's head count in Groton
was not immediately returned.
Numerous elected officials hailed the project.
“Pfizer’s presence in both the Town and City of Groton is an
extraordinary asset to our community and the southeastern Connecticut
region,” Juliette Parker, mayor of the Town of Groton, said in a written
statement. “We are proud to see Pfizer continue to invest in Groton and look
forward to our continued partnership and supporting the opportunities this
facility will create for our residents, businesses and region.”
State Sen.-elect Joe de la Cruz, a Democrat who will
represent a district that includes Groton, expressed similar optimism.
“Pfizer has been part of Groton for as long as I can
remember. My neighbors work there, and this investment keeps that work here for
the long haul,” de la Cruz said in a written statement. “I spent my career in
the trades, and I know what a project this size means: years of work for the
carpenters, electricians, sheet metal workers and laborers who will build it.
And when the construction crews leave, the jobs stay. This puts the scientists
and technicians on that campus in a modern facility built for the next
generation of medicines, and that keeps good-paying jobs anchored in the region
for decades to come.”
The New York City-headquartered Pfizer is one of the largest
companies in the world, with 2025 revenues of about $63 billion. Based on those
returns, it placed No. 73 in this year's Fortune
500 rankings.
Its highest-selling drug last year was the blood thinner
Eliquis, with revenues of about $8 billion. Other top sellers include Prevnar,
a vaccine against pneumococcal disease; Ibrance, a treatment for breast cancer;
Comirnaty, a vaccine against COVID-19; Paxlovid, a treatment for COVID-19; and
Nurtec, a medication for migraine headaches. Nurtec was developed by the New
Haven-based Biohaven, which Pfizer acquired
for about $11.6 billion in 2022.
Meanwhile, Groton is also benefiting from a boom at
submarine builder General Dynamics Electric Boat, which has a shipyard and main
offices on Eastern Point Road, a few blocks from Pfizer’s campus. Electric Boat
plans to hire 8,000 people this year to support $77
billion in new contracts for submarines for the U.S. Navy.
Electric Boat is the largest local employer, with more than
11,300 employees, and it is also the largest local taxpayer, according to the
Groton annual report.
The U.S. Navy’s submarine base, which is the home of
Electric Boat-made submarines such as the USS
Idaho and USS
Iowa, is the second largest local employer, with about 11,100 employees,
according to the report.
As arena construction continues, Mohegan Sun announces $22M hotel renovation
Alison Cross
Mohegan — Mohegan Sun announced plans for a $22 million
renovation of its Earth Tower hotel as the casino shared more details Thursday
on its multiphase arena transformation.
Mohegan Sun said it intends to start renovations on the
13-story, 400-room hotel next summer. Additional details on the project were
not immediately available. The Earth Tower hotel first opened in 2016.
In an update Thursday, the casino said its overhaul of
Mohegan Sun Arena is moving forward with a $30 million price tag. When Mohegan
Sun broke
ground on the project in August, estimated costs were $25 million.
“We’re really excited for this next chapter of Mohegan Sun
Arena,” Joe Soper, Mohegan’s vice president of sports and entertainment, said
in a statement. “The goal is simple: to create a more immersive, comfortable
and thrilling venue for fans as well as our artists and promoters.”
Although the arena will remain open for the first phase of
construction, Mohegan Sun said the arena will close from Dec. 15 through Feb.
28. When the space reopens, guests can expect new seating, concessions,
lighting, finishes, flooring and digital displays, as well as bathroom and
elevator upgrades.
Mohegan Sun said 25-foot-wide LED screens and 360-degree
“Halo” LED displays will be installed at the arena’s entrances. Beer garden
outlets will be replaced with “refreshed marketplace concepts” with more than
30 beer and craft-cocktail taps and expanded food options.
Another marketplace in the north of the arena will feature
“Just Walk Out” Amazon technology. Guests will be able to swipe their credit
card as they enter, grab a snack or drink, and walk out without having to wait
in a checkout line.
In 2027, Mohegan Sun said, it will start construction on a
4,000-square-foot VIP lounge at the arena’s Casino of the Sky entrance. The
lounge will include a full bar and upgraded amenities, offering a “luxury
pre-show and event experience” for up to 150 guests, according to the casino.
“This investment reflects our commitment to continually
evolving to meet the expectations of guests,” Jeff Hamilton, Mohegan Sun’s
president and general manager, said in a statement.
“We’re focused on reimagining how guests experience Mohegan
Sun at every touchpoint, from live entertainment and dining to accommodations
and premium amenities,” Hamilton added. “By investing in the resort and its
experiences, we’re building on our legacy of innovation and ensuring Mohegan
Sun remains a premier destination for years to come.”
Revolution Wind, staged at New London's State Pier, is fully up and running
Greg Smith
New London — State officials celebrated news Thursday that
Revolution Wind, the offshore wind farm that weathered two stop-work orders
from the Trump administration, reached full commercial operation last month.
The milestone for the nation’s third completed utility-scale
offshore wind farm was announced during Danish energy company Ørsted’s
third-quarter financial report to investors.
“This is a major milestone, and I’m very pleased with the
resilience and efforts that the team demonstrated to achieve this,” Ørsted CEO
Rasmus Errboe said in his presentation to investors Thursday.
Connecticut will receive 304 megawatts of the wind farm’s
output to the New England grid, with the remaining 400 megawatts delivered to
Rhode Island. The Constitution State’s share is expected to meet about 5% of
its overall electricity demand. In total, the wind farm is expected to power
the equivalent of 350,000 homes.
Gov. Ned Lamont called the achievement “a significant
milestone for Connecticut and a welcome addition to our energy mix that will
help lower utility costs for families and improve the reliability of our grid.”
“This moment was a long time coming, and this project
weathered multiple storms in the form of challenges from the federal
administration,” Lamont said in a statement. “I commend everyone involved for
staying the course and keeping focused on the goal: getting this project
completed and online, delivering affordable, reliable and clean power to our
grid for the benefit of our residents.”
Construction of the 65-turbine wind farm off the coast of
Rhode Island was completed in September, and it had been producing some power.
Power purchase agreements are in place with Rhode Island Energy, Eversource
Energy and United Illuminating.
The Trump administration twice issued stop-work orders that
targeted Revolution Wind, citing national security concerns. Courts later
allowed construction to resume.
More recently, attorneys for the U.S. Department of the
Interior asked a federal judge to rescind the department’s 2023 approval of the
project’s construction and operations plan. A decision has not yet been issued
in the case.
The moves are in line with President Donald Trump’s
outspoken opposition to offshore wind development. His administration has
slowed or halted multiple projects.
US. Rep. Joe Courtney, D-2nd District, was among the
legislators to applaud the news Thursday.
“At a time when Americans are facing skyrocketing energy
costs and New England households are being hit with over 70% price hikes on
home heating oil due to President Trump’s war in Iran, Revolution Wind will
deliver much needed cheaper energy to Connecticut’s grid,” he said.
Courtney said the cost of Revolution Wind’s power, 9 cents
per kilowatt-hour, is far less than the average of 30 cents per kWh in the
region. “Crucially, because this power is generated and transmitted from right
off the coast of New England, its price will not be at the mercy of global
energy markets,” he added.
“Congratulations to the talented Connecticut building trades
workers who completed this massive project through the Trump Administration’s
illegal halt work orders that were flatly rejected by every court. Your hard
work and perseverance will bring lower costs to Connecticut households,”
Courtney said in a statement.
Revolution Wind and South Fork Wind are two of Ørsted’s
three offshore wind projects that have been marshaled at State Pier in New
London, which was reconstructed at a cost of about $311 million with a mix of
funding from the state and Ørsted. Ørsted also leases the pier, where activity
continues on the company’s third and largest U.S. offshore wind project —
Sunrise Wind. Electricity from Sunrise Wind is headed for New York.
“The announcement that the Revolution project is now in
operation is the result of the work done by the people at State Pier and
offshore. Their dedication and attention to safety made this achievement
possible,” said the Connecticut Port Authority’s executive director, Michael
O’Connor.
“The Connecticut Port Authority and Ørsted, having
previously collaborated on the renovation of State Pier, continue to work
together to utilize the Connecticut port to install offshore wind,” he added.
Another development highlighted in Thursday’s report was
that Sunrise Wind has completed installation of all wind turbine foundations.
Construction advances on 322-unit apartment complex at former UConn West Hartford campus
Construction is progressing on a 322-unit luxury apartment
complex at the former University of Connecticut campus in West Hartford, with
leasing expected to begin in late spring 2027.
Short Hills, New Jersey-based Garden Communities said
Thursday that work is advancing on The Residences at Heritage Park at 1360
Trout Brook Drive.
The development will feature one- and two-bedroom
apartments, some with dens and balconies, along with a clubhouse featuring a
fitness center, tasting kitchen and office workstations.
Other amenities will include a rooftop gathering area,
outdoor swimming pool, dog park, electric vehicle charging stations, and
covered and surface parking.
Eli Pechthold, managing director of Garden Communities, said
the new community reflects his company’s focus on delivering “high-quality
multifamily housing in sought-after locations.”
The apartment complex received final approval from the Town
Council in April 2024. The project consists of four buildings on 14.86 acres
that previously served as parking for UConn’s former West Hartford branch
campus.
The
property was sold in August 2024 for $22.4 million to Milwaukee-based
Garden Homes Property Management Corp.
While releasing an update on the project, Garden Communities
did not disclose the anticipated rental rates, total construction costs or an
expected initial occupancy date for the apartment complex.
The development is separate from a larger mixed-use project,
also called Heritage Park, approved by the Town Council in February 2025.
That project, located across Trout Brook Drive at 1800
Asylum Ave., calls for residential units, a 90-unit assisted living facility,
retail shops, a restaurant, a spa and a grocery store on the former UConn
campus property.
UConn relocated its West Hartford branch to downtown
Hartford in 2017.