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The Santa Clara Valley Water District announced that it has awarded the Anderson Dam Seismic Retrofit Project contract to a joint venture formed by FlatironDragados and Sukut, with a contract amount of $1.88 billion and a total project cost of $2.8 billion. Construction is expected to start in 2027 and last seven years, involving the reconstruction of most of the dam structure and spillway, as well as the installation of new drainage pipelines.
A risk management feasibility study released by the U.S. Army Corps of Engineers last week indicates that the federal government may cover 65% of the cost of Boston's nearly $10 billion coastal resilience infrastructure plan. The first draft of the plan covers more than 20 infrastructure projects along Boston's 16-mile coastline and is expected to avert approximately $41 billion in losses. Boston began sponsoring this study in 2022, with the final report expected to be released in 2028.
Granite Construction revealed on its second-quarter earnings call Thursday that its data center customer backlog more than tripled year over year, jumping from $65 million to $223 million. Although the company aims to increase data center revenue to 10% of its total, it remains committed to a balanced portfolio across public and private infrastructure and materials supply. Facing the upcoming expiration of the 2021 Infrastructure Investment and Jobs Act and potential cuts to highway funding, company executives said they prefer a funding structure centered on formulaic allocations and bridge investments, and continue to adopt strategies such as short-cycle work and 100% design pricing to manage risk. The company reported second-quarter revenue of $1.46 billion, up 29% year over year, but recorded a net loss of $278 million due to a $360 million non-operating charge related to debt restructuring.
This week's construction industry updates: Amtrak advances New Jersey Dock Bridge renovation, Sundt completes $34 million dam in Texas, Granite subsidiary Memphis Stone & Gravel opens new river material yard, and Douglaston-Little Neck Library in Queens, New York City breaks ground.
Procore announced on Wednesday that it has reached an agreement to acquire DroneDeploy for $845 million in cash. DroneDeploy is a robotics and visual intelligence platform used in over 180 countries. Upon completion of the transaction, the two companies will sell each other's products and integrate vast amounts of construction site data to drive AI-powered automated responses.
The Trump administration announced a $22.5 billion comprehensive renovation of Washington Dulles International Airport, planning to replace terminals, add gates, and replace the existing people mover system with a U-shaped train. The project is jointly overseen by the U.S. Department of Transportation, the airport authority, and United Airlines, with funding raised through municipal bonds and public-private partnership models, significantly expanding on the previous $7 billion modernization plan.
Amtrak announced progress on its $6 billion Baltimore and Potomac Tunnel replacement project while adjusting the project scope in response to construction market conditions. Adjustments include eliminating an intermediate ventilation facility and raising the track elevation at the tunnel's lowest point to reduce community impact and optimize costs. The project's main tunneling work is about to commence, with an expected opening in 2036.
The construction cost index released by Turner Construction Company in New York showed a 5.2% year-over-year increase and a 1.4% quarter-over-quarter increase in Q2 2026. Despite fluctuations in monthly cost data, annual cost pressures remain significant, driven primarily by demand in high-end sectors such as data centers and semiconductors.
Ryan Cos. executives noted that while demand for data center projects is strong, practical constraints such as site selection, permitting, and supply chain are forcing contractors to carefully select projects and reassess construction timeline expectations.
The Federal Reserve kept its federal funds rate target range unchanged at 3.5% to 3.75% at its July meeting, passing by a 9-to-3 vote. Three regional Fed presidents dissented, advocating for a 25-basis-point rate hike. Chair Kevin Warsh described the discussion as a "healthy debate" and emphasized that achieving price stability remains the core task.