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Architecture & Engineering Services Update 2H 2025

Architecture and engineering firms closed out 2025 navigating a market defined by structural tailwinds and uneven demand. Data centers and power infrastructure drove outsized growth, public funding continued to underpin core end markets, and AI-enabled workflows moved from experimentation to standard practice, even as commercial real estate remained a drag and private sector caution persisted.

The question now is whether firms can capitalize on a generational infrastructure build cycle while managing the technology transitions and consolidation pressures reshaping the industry.

Download the 2H 2025 Architecture & Engineering Services Update to see the data, valuations, and recent deals.

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ae report 2h 2025

Insights include:

  • Data center growth reshapes power and design: U.S. data center energy consumption is expected to exceed 600 TWh by 2030, and sustainability mandates are pushing developers to integrate low-carbon sources into data center design and construction. 

  • AI, VR, and AR are transforming project delivery: AI tools enhance BIM, project management, and visualizations, while virtual and augmented reality are improving design precision and reducing errors across the project lifecycle.  

  • Aging infrastructure and public funding sustain demand: Nearly 70% of U.S. power transformers exceed 25 years in age, and a multi-year supercycle driven by public funding, reshoring, and grid modernization has created durable demand visibility for A&E firms.