European construction companies are betting on computing power, with data centers propping up their performance during the cold winter.

Currently, European construction companies and building material enterprises are deeply mired in the dual dilemma of a sluggish housing market and weak industrial activity. In search of a breakthrough, they are turning their strategic focus to the only sector currently showing robust growth - data centers. According to analysis, in the financial reports of construction and building material companies released this quarter, the keyword "data center" continues to hover near historic highs, and the financial reporting season is still ongoing. This phenomenon fully highlights the increasing importance of the data center market for enterprises at a time when demand in other sectors continues to be suppressed. It is understood that in this financial reporting season, the business layout of server farms has brought significant boost to Irish construction company Kingspan Group Plc; meanwhile, Swedish infrastructure giant Skanska AB has effectively counteracted the adverse impact of a soft residential construction business through its data center business. Analysts Kevin Kouam and Sonia Baldeira of Bloomberg Industry Research note that Sika AG, which supplies chemicals to the construction industry, expects its profit margin to exceed previous expectations by 2026. This is because the sluggish trend in US construction activity will be offset by the "US data center investment boom, as well as strong demand prospects in Europe, the Middle East, and Africa." During a financial results conference call on February 20th, Sika CEO Thomas Hasler stated that the US market is a "tremendous growth highlight." He said, "Data center investments are showing strong growth, significantly driving up commercial construction spending, while other commercial construction activities lag slightly behind." This trend has provided Sika with a glimmer of opportunity for a stock price rebound. Over the past year, the company's stock price has plummeted by 31% due to declining demand from the construction and automotive industries, but this month its stock price has risen by 8.2%. Swiss heating and ventilation system manufacturer Belimo Holding AG established a dedicated data center vertical business unit by 2025 and developed a wider range of solutions for customers. The company stated that by 2025, its data center cooling products accounted for nearly half of its sales growth, while non-residential building expenditures in its various markets have slowed down. At the same time, Kingspan's Advnsys division responsible for data center infrastructure construction has shown an exceptionally strong pipeline of projects, with order intakes so far this year reaching twice the levels of the same period last year. This momentum has helped counteract the impact of a softening industrial and residential market. "It is clear that the group is in a position of significant advantage in the market." Davy analyst Florence O'Donoghue pointed out in a report, emphasizing the "especially optimistic" prospects for Advnsys development. Additionally, O'Donoghue gave Kingspan an "outperform" rating. Similar dynamics are also playing out at Vinci SA and Skanska, where the positive impact of data center projects has eclipsed the previously sluggish real estate market conditions in France and the Nordic region. By 2026, construction companies will continue to benefit from this vibrant market. After all, economic indicators in major markets indicate that the road to industrial recovery is long and winding, and residential construction is still being suppressed by persistently high interest rates. With some end markets gradually shifting towards favorable environments, some companies may start to profit from it. Berenberg analyst Patrick Laager - who gave Sika a "buy" rating - stated in a report that Sika is poised to be "a typical example of the current recovery trend," as its investment logic is becoming "increasingly convincing."