Artificial Intelligence is reshaping the American economy at a rate not seen since the desktop computing boom of the 1990s. There is hardly an industry in the US that is not taking advantage of AI in some way.
Case in point: trade publishing. As you’ve been reading this issue of CONTRACTOR—either in print or online—you may have noticed a tagline at the bottom of some articles, “Note: this release was rewritten with help from generative AI.”
This is not us being lazy. In fact, this adds additional steps to the publishing process. By running a press release through AI we can make it more tailored to the interests of plumbing and hydronic heating professionals (our key readers) which helps drive reader engagement. It also makes each release—any one of which could be going out to several media channels—unique to us, which helps our search engine ranking.
If this sounds like we are using one set of machines in an attempt to satisfy a different set of machines, well, yes, that is part of it. And if doing that sounds a bit silly (or maybe even a tad dystopian), you’re not wrong. I and my fellow editors have had plenty of conversations about the brave new world AI is creating for media professionals.
The mechanical contracting industry is also adopting AI—either directly or through software tools that have begun incorporating AI-powered features (such as ServiceTitan, Salesforce and Housecall Pro).
But contractors are typically conservative when it comes to adopting new technology, and AI is no exception. According to the 2025 Annual AI Benchmarking Report from BuiltWorlds —which specifically surveyed construction companies—35% of respondents said their companies are still exploring AI’s potential but haven’t fully embraced it. Another 33% reported that AI is a core strategic focus, though limited to specific departments or initiatives. Just over a quarter—27%—said AI is central to their company’s overall strategy, while only 4% said it is not a strategic focus at all.
But for mechanical contractors the growth of AI means more than just a new set of tools. For a segment of the industry—those possessing the right skills and equipment—it has become a huge driver of revenue. AI means data centers, and those data centers are being cooled with hydronic systems.
In this month’s cover story, MSI Economics projects $86 billion in US data center construction by 2026—far exceeding traditional growth models. According to MSI, “Contractors will continue to capture the majority of spend.”
Associated Builders and Contractors have surveyed their members and seen stable backlogs and steady confidence in the face of economic headwinds, which they attribute to two main factors: infrastructure projects and data center construction.
According to ABC Chief Economist Anirban Basu, “approximately 1 in 5 contractors was under contract to work on a data center project in September. While that’s a slightly lower share than in August, contractors that have data center work had significantly higher backlog (12.0 months) than those who did not (8.0 months).”
Now, call me a cynic who has been working this job too long, but any time I see a boom—telecom, dot-com, sub-prime mortgage—I can’t help but worry about the bust. Right now, there are a few factors slowing down this train (labor shortages, permitting delays, and power grid demands to name just three) but we're still moving awfully fast. Let’s hope that when the rush of enthusiasm ends and reality sets in there’s enough real value from AI to prevent too damaging a crash.
