Argan, Inc. (AGX) has expanded its scope beyond traditional power-generation projects to include data center infrastructure, indicating a growing strategic focus on this niche. The company secured a $125 million contract in November 2025 for a U.S. data center project that involves fabricating thermal expansion and energy storage tanks. This contract is set to provide multi-year revenue visibility up to 2028, as Argan taps into increasing demand driven by artificial intelligence (AI) and cloud computing.
To further capitalize on these opportunities, Argan is constructing a new fabrication facility in North Carolina, expected to be operational by the third quarter of fiscal 2027. Currently, the Industrial segment represents 20% of Argan’s revenues, with a backlog of approximately $225 million, while the Power segment holds $2.5 billion. This shift indicates the data center business’s potential as a critical growth pillar despite its current smaller scale.
Shares of Argan Inc. have surged 144% year to date, reflecting strong market interest. The company anticipates year-over-year growth rates of 29.4% and 32.2% for fiscal 2027 and 2028, respectively, driven by expanding fabrication capacity and the increasing importance of data center infrastructure.
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