Ready, Go, Set: How Disruptions Are Flipping EPC Contracting

Core Insights - The energy sector is experiencing unprecedented load growth driven by data center demand, leading to a shift in generation and procurement strategies among utilities [2][4][5] - Traditional engineering, procurement, and construction (EPC) models are being disrupted by urgent timelines and equipment shortages, necessitating a more integrated approach to project execution [8][9][13] - Workforce shortages are emerging as a critical constraint, with a significant need for skilled labor to support the expanding energy infrastructure [17][18] Group 1: Load Growth and Demand - Utilities are signing large-load agreements to meet accelerated demand, with Southern Co. securing over 2 GW in recent contracts and projecting a 50-GW pipeline through the mid-2030s [2] - NextEra Energy has a 30-GW renewables and storage backlog, driven by partnerships with data centers, highlighting the shift towards bespoke generation agreements [3] - Dominion Energy reports a 17% increase in data center demand, with 47 GW in various contracting stages, emphasizing the need for timely resource development [4] Group 2: EPC Model Transformation - The traditional EPC model is being inverted due to geopolitical tensions and supply chain disruptions, leading to a focus on urgency rather than cost [8][9] - Companies like Burns & McDonnell are integrating consulting with execution to address the complexities of energy transition and project delivery [13] - The urgency of data center timelines is forcing utilities to adapt their project execution strategies, with a shift from "Ready, Set, Go" to "Ready, Go, Set" [13] Group 3: Workforce Challenges - The global power engineering workforce needs to double by 2030 to meet infrastructure demands, with significant competition for skilled labor [17] - Companies are investing in workforce development initiatives, such as Burns & McDonnell's Construction Academy, to address labor shortages [18] - Bechtel and Kiewit are implementing training programs to build a self-sustaining pipeline of skilled workers, recognizing the critical need for labor in project execution [18]