The 2026 Outlook Is Bright For Underground Utility Work
Power demand, grid investment, and broadband construction are lifting demand across the utility sector, and with them the case for non-destructive digging.
Power and Data Centers – An Unlikely Pair of Demand Drivers
The forces reshaping utility construction into 2026 aren't the obvious ones for the water and wastewater trades — they're power and data centers. But it's worth understanding why. According to Deloitte's Center for Energy & Industrials FMI Capital Advisors, 2025 was a strong year across utility and communications construction, with resiliency, interconnection, and population growth keeping backlogs full.
Why data centers are setting the pace
Looking into 2026, FMI expects two forces to dominate: data centers and rising power demand. In some markets, data centers now account for more than 25% of total non-residential building construction. The rapid adoption of AI is accelerating that buildout and putting power availability at the center of where and when projects break ground — Berkeley Lab estimates data centers could consume between 325 and 580 TWh annually by 2030, or 7% to 12% of total U.S. electricity use.
What it Means for Water, Wastewater Industry
The connection to WWETT is direct. Municipal water and wastewater markets are expected to grow meaningfully in 2026, with FMI projecting growth exceeding 7%. FMI also notes that a significant share of utility work across power, gas, water, and wastewater pipelines is repair-and-replacement activity that never shows up in new-construction figures — and that steady non-building structures construction is expected to keep growing above inflation. Data centers themselves depend on wet and dry utilities alongside power and fiber, so the crews and engineers with track records in interconnections, substations, and underground utility work are the ones positioned to capture multi-year backlog.
Hydrovac demand is set to climb through 2034
For the water, wastewater, and utility crews who already run vacuum excavation, the market data points in one direction: up. According to market.us, the U.S. hydro excavation truck market is projected to grow from roughly $501.4 million in 2024 to about $986.3 million by 2034, a compound annual growth rate of 7.0%. North America leads the global market, a position analysts attribute to stringent safety regulations and a large base of aging utility infrastructure.
Why the work keeps coming
Intel Market Research ties the growth to two durable drivers. The first is regulation: in North America, OSHA standards prioritize non-destructive methods near buried utilities, which keeps hydro excavation in demand wherever a strike is a real risk.
The second is aging infrastructure — cities upgrading old water and gas pipelines increasingly need excavation that won't disrupt service in dense, built-up areas. The report also flags 5G and fiber-optic deployment as a growth area, since those installs have to thread through crowded underground utility corridors without cutting existing lines.
The technology curve
The report points to digital integration as a defining trend — leading providers are pairing vacuum systems with GPS and digital mapping for more precise utility location, plus real-time monitoring that feeds cleaner reporting back to clients. For operators, the takeaway is that the equipment edge is shifting from raw suction and water pressure toward how well a rig captures and reports data on the job.
Where the demand concentrates
The report identifies municipal work as the strongest area of adoption, driven by urban safety rules and the sheer density of underground infrastructure in cities. Utility companies lead consumption overall, using hydrovac to maintain aging assets while avoiding the cost of a utility strike. Emergency service — 24/7 response for urgent repairs — is called out as one of the fastest-growing service models, with premium pricing attached to immediate availability. North America remains the largest and most mature market.
The AARCOMM advantage
Aarcomm's wireless remote controls let an operator run vac or sewer truck functions from the point of the dig, with eyes on the tolerance zone rather than on the rig. Increasingly, the equipment edge is shifting from raw suction and water pressure toward how precisely a crew can work and how cleanly a job gets documented. Wireless remote controls are part of that shift. For the OEMs building the next generation of vacuum excavation and utility equipment, that's where Aarcomm comes in: wireless remote systems that are rugged, reliable and 100% waterproof.
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