Jacobs Selected for AEP’s $37 Billion Transmission Program Across Seven States
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Marin Holt
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- 6 minutes read
- AEP five-year transmission program: $37 billion
- Private power construction growth, September: 14%
- Data center construction growth: 90%
- Jacobs fiscal third-quarter backlog: $28.9 billion
American Electric Power selected Jacobs to provide integrated program delivery services for a five-year transmission investment program. Construction Owners reported that the utility is advancing the $37 billion program to address rising electricity demand. The work covers transmission infrastructure projects across seven eastern states: Indiana, Michigan, Ohio, Kentucky, Tennessee, West Virginia, and Virginia. Delivery work is already underway.
Operations will expand as American Electric Power advances its project pipeline. Jacobs will oversee project management and project controls across the multi-state program. The firm will also manage engineering and design, site selection, and environmental support. Additional responsibilities include stakeholder outreach and right-of-way services.
Jacobs will lead a delivery team coordinating with ORC, GFT, and RC Commonwealth. According to Construction Owners, these partners bring direct experience with AEP design standards and right-of-way requirements. In addition, PA Consulting, a Jacobs business, will assist with initiatives supporting long-term strategic priorities for AEP.
The contract adds to Jacobs’ portfolio in energy infrastructure. The company previously served as Owner’s Engineer on Project Hostos, an HVDC subsea interconnector. Jacobs also supported the Bonneville Power Administration on the Grand Coulee Modernization Program. Outside the power sector, the company secured a role upgrading a $1 billion wastewater treatment facility in San Francisco in partnership with PCL Construction.
Rising power demand continues to drive utility spending across the transmission sector. Construction Dive reported that Jacobs CEO Bob Pragada addressed the market shift in a company release. Pragada stated that growing electricity demand is driving significant investment in transmission infrastructure to support reliable and resilient energy systems.
Recent industry metrics point to rapid expansion in power infrastructure. A report from the Associated General Contractors of America shows private electric power construction spending grew by 14% year over year in September. Over the same period, data center construction spending surged 90% despite contractions in other private nonresidential categories. Jacobs reported a record backlog of $28.9 billion in its fiscal third quarter, driven by strong demand for infrastructure and data center work.
Why It Matters
Rising electricity demand is pushing utilities to execute large capital programs. The $37 billion five-year commitment from American Electric Power illustrates the scale of regional grid modernizations underway across seven eastern states. Spending data from the Associated General Contractors of America shows private power construction climbed 14% in September. Data center construction surged 90% over the same period. Those figures contrast with broader drops in other private nonresidential building. For Jacobs, the AEP work follows a record $28.9 billion backlog reported in its fiscal third quarter.
Critical Perspective
Construction Owners reports that AEP is advancing a $37 billion transmission program, but the article provides no project milestones or cost controls against which to judge delivery. Jacobs’ broad remit spans engineering, site selection, environmental support and rights of way, leaving several linked tasks to coordinate. Partners’ familiarity with AEP standards does not establish that approvals or land access are secured. Which projects have completed those prerequisites and have firm construction schedules?
