Jacobs has secured a $200 million progressive design-build contract to upgrade the San José–Santa Clara Regional Wastewater Facility, the second largest advanced treatment plant in the western U.S. Under the agreement, Jacobs will replace and modernize mesophilic digesters, install a new Fats, Oils & Grease receiving station and enhance the facility’s award-winning cogeneration system. The firm’s role is supported by Walsh Construction and Structural Technologies, boosting Jacobs’ design-build backlog and reinforcing its leadership in large-scale water infrastructure projects.

This project is expected to contribute to Jacobs’ top-line growth over the next five years, with design-build revenue recognized in phases as engineering, procurement and construction activities progress. The firm estimates that digester improvements and the FOG station will generate incremental service and maintenance revenue streams tied to performance guarantees. Investors should note the high-margin nature of Jacobs’ integrated delivery model, which typically delivers a gross margin uplift of 200–300 basis points compared with traditional engineering contracts.

Jacobs projects that integration of its Microbial Hydrolysis Process could boost biogas output by up to 36% and reduce biosolids generation by as much as 74 wet tons per day—equivalent to the weight of 50 mid-size cars. These enhancements are designed to cut natural gas consumption, lower greenhouse gas emissions and extend the facility’s operational life through 2077. The upgrades underscore Jacobs’ position in the growing market for renewable energy from waste and align with municipal priorities for carbon reduction and resource recovery.

The San José award follows Jacobs’ delivery of more than 150 water design-build projects over 25 years, including previous modernizations at this very facility and the Donald C. Tillman Advanced Water Purification Facility. This latest contract further cements Jacobs’ reputation among U.S. municipalities and utilities as a turnkey provider. The company’s expanding water business, combined with its diversified portfolio in energy, transportation and environmental services, positions it to capture additional opportunities arising from federal infrastructure funding and state-level decarbonization mandates.