Comfort Systems USA has substantially increased its focus on data center construction, with technology‐related projects now accounting for 42% of total revenues. Over the past four quarters, the company has secured new HVAC and electrical contracts at eight hyperscale facilities, representing a 120% increase in square footage served compared to the prior year. Management reports that average project size has risen to $18 million, up from $12 million a year ago, reflecting both higher build-out complexity and accelerated deployment by major cloud providers.

As of the end of Q3 2025, the company’s total backlog reached a record $9.38 billion, marking a 65% year‐over‐year increase. Data center‐related jobs represent approximately 55% of the current backlog by value, up from 30% one year earlier. Despite widespread concerns about potential overcapacity, Comfort Systems USA sees no signs of demand waning; in fact, bid pipelines for calendar 2026 are 35% higher in dollar terms than during the comparable period in 2024. The sustained strength in backlog underpins visibility into revenue growth well into next year.

With tech projects lifting margins by roughly 200 basis points relative to legacy commercial work, Comfort Systems USA’s gross margin has expanded to 24.8% from 22.8% a year ago. Operating income is projected to grow at an 18% compound annual rate through fiscal 2026, driven by higher utilization on large-scale data center sites and continued pricing discipline. For investors, the combination of secular AI infrastructure demand and a backlog equating to nearly two years of current run‐rate revenues makes Comfort Systems USA a compelling play on long-term tech build-outs without direct exposure to equity market volatility.