What's Happening?
The traditional model of engineering, procurement, and construction (EPC) contracting is undergoing significant changes due to equipment lead times, workforce shortages, and data center timelines. These
disruptions are challenging the sequence of project development, prompting EPC firms to adapt their strategies to meet new market realities. The shift reflects broader trends in energy infrastructure and project management.
Why It's Important?
The changes in EPC contracting impact the efficiency and cost-effectiveness of energy projects, influencing the ability to meet growing demand from sectors like data centers and AI. This may lead to increased collaboration between utilities and developers, as well as innovation in project execution strategies. The situation underscores the need for flexibility and adaptability in the energy industry.
