Sterling Announces Data Center Project Award Valued at Approximately $100 Million

Rhea-AI Summary

Sterling Infrastructure, Inc. (STRL) has announced that its subsidiary Plateau Excavation secured a $100 million data center project in the southeastern U.S. The project involves 280 acres and 125,000 linear feet of underground infrastructure. CEO Joe Cutillo highlighted the strong demand in the data center market and the company's expertise in delivering mission-critical projects.

Market Research Analyst

The announcement of Sterling Infrastructure's new $100 million data center project is a significant development for the company and its investors. Data centers are a critical component of the digital economy, supporting the vast amounts of data generated by consumers and businesses alike. With the rise of AI and other emerging technologies, the demand for data processing and storage is surging.

From a market research perspective, this project aligns with the broader industry trend towards increased investment in IT infrastructure. The construction of new data centers is often seen as a forward indicator of growth in the tech sector. Sterling's ability to secure such a large-scale project suggests confidence in their operational capabilities and may signal potential for future contracts within the industry.

Moreover, considering the project's scale and the mention of 'mission critical' importance, it's clear that Sterling is positioning itself as a key player in the data center construction market. The impact on Sterling's financials could be substantial, particularly if this project leads to further opportunities in a market that is becoming increasingly essential to the tech industry's infrastructure.

Construction Industry Analyst

The details surrounding Sterling Infrastructure's awarded data center project indicate a substantial undertaking, with 280 acres and 125,000 linear feet of underground infrastructure installation. In the construction industry, such projects are not only lucrative but also technically demanding, requiring a high level of expertise in both planning and execution.

Given the project's magnitude, it will likely contribute positively to Sterling's revenue and earnings during the construction period. It's also worth noting that the data center construction market has specific challenges, including the need for sophisticated cooling systems and redundant power sources to ensure uninterrupted operation. Sterling's subsidiary, Plateau Excavation, will need to navigate these complexities to maintain their reputation and capitalize on the growing market demand.

Investors should monitor the project's progress as its successful completion may enhance Sterling's reputation and could lead to similar future projects. However, any delays or cost overruns could negatively impact the company's financial performance and stock price. The long-term benefits hinge on the execution of this project and the company's ability to leverage its experience for additional contracts.

Technology Industry Analyst

The CEO's remarks highlight the strategic importance of the data center market, especially in supporting emerging technologies like AI. For technology investors, the intersection of construction and tech through data center projects is a growing area of interest. Sterling's entry into this space with a $100 million project is noteworthy.

As emerging technologies continue to evolve, the reliance on data centers will likely increase, potentially leading to a steady stream of similar projects for companies like Sterling. The ability to deliver on-time is important in the tech industry, where delays can have significant downstream effects. Sterling's emphasis on their 'best-in-class capabilities' and 'customer-centric focus' could be a differentiator that attracts further business.

Investors should consider the long-term implications of Sterling's involvement in the data center market, as it may impact the company's growth trajectory. The success of this project could position Sterling as a preferred contractor for future tech infrastructure developments, potentially affecting the company's stock performance positively.

THE WOODLANDS, Texas, March 18, 2024 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company")  today announced that Plateau Excavation, a Sterling subsidiary, has been awarded a data center project in the southeastern U.S. with a value of approximately $100 million. The project scope covers 280 acres and includes 125,000 linear feet of underground infrastructure installation. Work is expected to begin in the second quarter of 2024.

CEO Remarks

"The data center market remains extremely robust as our customers work to build the infrastructure to support future data demand including the needs of artificial intelligence (AI) and other emerging technologies," stated Joe Cutillo, Sterling's Chief Executive Officer. "We are very pleased to have been selected by our customer for this project. Plateau's best-in-class capabilities and customer-centric focus make them a trusted partner in mission critical projects where on-time delivery matters most."

About Sterling

Sterling Infrastructure, Inc., ("Sterling," "the Company," "we," "our" or "us"), a Delaware corporation, operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services for manufacturing, data centers, e-commerce distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, and plumbing services for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society's quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.

Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow."

Important Information for Investors and Stockholders

Cautionary Statement Regarding Forward-Looking Statements

This press release contains statements that are considered forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to risks and uncertainties, including those risks identified in the Company's filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. The forward-looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

Sterling Infrastructure Contacts:

Noelle Dilts, VP of Investor Relations and Corporate Strategy
281-214-0795
noelle.dilts@strlco.com

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SOURCE Sterling Infrastructure, Inc.

FAQ

What project did Sterling Infrastructure, Inc. (STRL) announce?

Sterling announced a $100 million data center project in the southeastern U.S.

When is the work expected to begin on the project?

The work is expected to start in the second quarter of 2024.

Who is the CEO of Sterling Infrastructure, Inc. (STRL)?

Joe Cutillo is the Chief Executive Officer of Sterling Infrastructure, Inc.

What is the scope of the data center project announced by Sterling Infrastructure, Inc. (STRL)?

The project covers 280 acres and includes 125,000 linear feet of underground infrastructure installation.

What was highlighted by CEO Joe Cutillo regarding the data center market?

Joe Cutillo emphasized the strong demand in the data center market and the importance of building infrastructure to support future data needs.

Why was Plateau Excavation chosen for the project according to the CEO?

Plateau Excavation was selected for its best-in-class capabilities and customer-centric focus in delivering mission-critical projects.