Industry Forecasts for 2026: Navigating Growth and Challenges in Key Sectors
Industry leaders are bracing for a dynamic 2026, with significant growth anticipated in data centers and manufacturing, while engineering, construction, and renewable energy sectors face evolving challenges. Key trends include the accelerating adoption of AI, persistent labor shortages, and the critical need for energy innovation to support expanding infrastructure.
Key Takeaways
- Data Centers: Expected to double global capacity by 2030, driven by AI and cloud growth, requiring substantial infrastructure investment and innovative energy solutions.
- Manufacturing: Poised for growth, with a focus on smart technologies, agentic AI, and supply chain resilience amidst evolving trade policies.
- Engineering & Construction: Facing critical labor shortages, with a significant portion of the skilled workforce nearing retirement and increased competition for talent.
- Renewable Energy: Navigating policy shifts and supply chain complexities, with a focus on battery storage, hydrogen, and nuclear power, while wind and solar face specific tax credit phase-outs.
Data Centers: An AI-Fueled Expansion
The data center sector is on the cusp of an unprecedented expansion, projected to add nearly 100 GW of new capacity between 2026 and 2030, effectively doubling global capacity. This surge is primarily fueled by the escalating demand for Artificial Intelligence (AI) and cloud computing. By 2030, AI is expected to constitute half of all data center workloads, with inference becoming the dominant driver. This growth necessitates an estimated $3 trillion in infrastructure investment, with $1.2 trillion allocated to real estate asset value creation and an additional $1 to $2 trillion for IT equipment fit-outs. To address grid constraints and lengthy connection wait times, data center operators are increasingly turning to on-site power generation, including natural gas and renewables, alongside battery storage solutions.
Manufacturing: Embracing Smart Technologies and Resilience
The manufacturing sector is set for a period of growth, underpinned by the adoption of smart technologies and agentic AI. These advanced AI systems, capable of independent task completion and collaboration, are transforming factory operations. However, the industry is also navigating a complex landscape of evolving trade policies, including potential tariff renegotiations and a continued focus on supply chain resilience. Manufacturers are actively working to enhance visibility, mitigate risks, and optimize costs through strategies like "should cost" analysis and reshoring initiatives. Workforce development remains a priority, with a need for skilled talent to manage new technologies.
Engineering and Construction: Battling Labor Shortages
The engineering and construction (E&C) sector faces significant headwinds due to persistent labor shortages. A substantial portion of the current workforce is nearing retirement, with a low influx of younger talent entering the field. This is exacerbated by the migration of engineering talent to the technology sector. The surge in demand for large-scale projects, such as data centers and energy storage facilities, will further strain the skilled labor pool, potentially leading to shortages of millions of craft professionals by 2028. In response, firms are accelerating investments in digital tools and automation, including AI-powered scheduling and robotics, while also rethinking human resource strategies to attract and retain talent.
Renewable Energy: Navigating Policy and Supply Chains
The renewable energy sector is experiencing a dynamic shift influenced by evolving tax policies and supply chain considerations. While wind and solar power face expedited phase-outs of certain tax credits, battery storage retains support but contends with supply chain risks from restrictions on Foreign Entities of Concern (FEOCs). Low-carbon hydrogen projects may qualify for production credits if construction begins before 2028, though many are at risk. Hydropower, geothermal, and nuclear energy are receiving strong federal support. The sector is also seeing increased utilization of renewables like solar and wind in regions like EMEA and APAC, often combined with private wire transmission to reduce power costs. AI is also playing an increasing role in optimizing energy storage and operations.
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