Jim Cramer calls one major data center play a no-brainer buy

The next time a hurricane knocks out power across the Gulf Coast, the crews that show up to rebuild hundreds of miles of transmission lines in days are likely working for companies in the Quanta Services (PWR) network.

This is a company most Americans will never think about, but whose work shapes daily life in ways that are impossible to ignore when it stops.

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I think about that when I found Jim Cramer’s Oct. 2 Lightning Round call on Quanta.

I still think it is a buy. I think there is still a buildout. Right now, because of the election, it looks like things aren't going to go well. I think when that's over, you're going to see more building going on. I like PWR.

Midterm elections are scheduled to be held, in large part, on Nov. 3, 2026, U.S. Vote Foundation noted.

Yes, the election uncertainty Cramer references is temporary. But the structural demand for what Quanta does is not.

Also Read: Quanta Services Inc. Latest News

What Quanta Services actually does and why AI depends on it

There is a sequence that almost nobody in the AI investment world talks about enough. Before a data center can house a single GPU, before a single training run can begin, before a hyperscaler can serve a single inference request, someone has to build the substation, run the transmission lines, and connect the facility to power.

That is overwhelmingly likely to be Quanta Services or one of its operating companies, or Eaton, as covered previously for TheStreet.

Quanta is the largest specialty contractor in North America for electrical infrastructure, renewable energy construction, and underground utilities, with more than 69,000 employees at year-end 2025, according to the company’s August 2026 investor presentation.

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In fact, more than 80% of its work is self-performed. That means Quanta’s own crews do the actual work rather than farming it out to subcontractors. When you buy a Quanta project, you are getting Quanta’s certified linemen, training infrastructure, and labor deployment model.

And remember, Quanta was named the top U.S. solar solutions provider by Solar Power World for 2026, having installed more than 6,100 megawatts of domestic solar capacity in 2025 alone, according to Quanta‘s announcement. In fact, it was the third time in four years.

The technology and load center market — data centers, advanced manufacturing, and facility automation — represents an $885 billion total addressable market in Quanta’s 2026 to 2030 forecast, according to its investor presentation.

The broader infrastructure TAM the company addresses is estimated at $2.4 trillion.

Quanta Services Q2 results show the buildout is already here

Cramer’s comment about “more building going on” after the election sounds forward-looking. But the data from Quanta’s Q2 2026 earnings release shows the building has already been happening.

Revenue was $9.56 billion in Q2, up from $6.77 billion in Q2 2025 — a 41% increase in a single year.
Adjusted diluted EPS was $4.24, up from $2.48 YoY.
Total backlog reached a record $53.4 billion.
Free cash flow was $900 million for the quarter alone.
- Source: Quanta Services Q2 Fiscal 2026 Results

The company raised its full-year 2026 revenue guidance to $39.3-$39.7 billion, with adjusted diluted EPS of $16.45-$16.95 and free cash flow of $2.0-$2.5 billion. Moody’s upgraded Quanta’s senior unsecured notes from Baa3 to Baa2 in the same quarter, according to its Q2 report.

Four acquisitions — Phalcon, Enerfab, Percheron, and PSD — were completed for approximately $1.24 billion in upfront consideration and are expected to contribute $1.2 to $1.4 billion in revenue in fiscal year 2026.

Quanta also formed a joint venture with Hyosung HICO in Pennsylvania to manufacture domestic high-voltage circuit breakers up to 800 kV, addressing a supply chain vulnerability that has been slowing data center and grid construction nationally.

Quanta formed a joint venture with Hyosung HICO in Pennsylvania to manufacture domestic high-voltage circuit breakers up to 800 kV.

boonchai wedmakawand / Getty Images

What Cramer is actually saying on Quanta Services and the one risk worth watching

Cramer’s “election” comment is just about near-term sentiment, not the underlying thesis.

That thesis is infrastructure spending. Grid modernization, renewable buildout, and data center electrification have had bipartisan support across multiple administrations. The $53.4 billion backlog does not disappear based on an election result.

The more substantive risk you should monitor as a Quanta investor is labor availability. A 25% 10-year adjusted EPS compound annual growth rate, according to the investor presentation, requires consistent execution across thousands of projects simultaneously.

Quanta has invested more than $250 million in training infrastructure over the past decade, including its ownership of Northwest Lineman College and a 2,300-acre training center, according to the same presentation.

That investment in its own workforce is the structural advantage that keeps it ahead of a market where skilled craft labor is the real scarce resource.

On performance, PWR is up 70.62% year-to-date and 68.33% over the past year, according to Yahoo Finance. The three-year return stands at 318%. At 70% year-to-date, PWR has rewarded investors generously.

And the $53.4 billion backlog suggests the work has not run out yet.