Simply Wall St
3 min read
Jacobs Solutions announced it has been selected by Hut 8 to deliver engineering, procurement and construction management services for the River Bend data center in Louisiana, a 245-megawatt AI and high-performance computing facility under a 15-year, US$7.00 billion lease, with initial capacity targeted for commissioning in early 2027.
This contract enhances Jacobs’ role in large-scale AI-ready infrastructure, adding to its global data center and quantum computing project portfolio and underscoring its capabilities in high-density, sustainable compute environments.
Next, we will examine how this large-scale AI and high-performance computing EPCM win could influence Jacobs Solutions’ broader investment narrative.
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To own Jacobs Solutions, you need to believe the company can convert its deep engineering footprint into better quality growth, especially in higher value, AI-ready infrastructure. The Hut 8 River Bend award reinforces that narrative by extending Jacobs’ reach in large-scale data centers, but it does not on its own resolve the near term concern around sluggish earnings and historically modest returns on invested capital, which remain key watchpoints for shareholders.
The most relevant recent announcement alongside River Bend is Jacobs’ expanded work with PsiQuantum, where it serves as Owner’s Representative for the Illinois Quantum and Microelectronics Park. Together, these wins highlight Jacobs’ growing exposure to advanced compute infrastructure and digital projects that underpin its backlog catalyst, while also increasing the execution and capital intensity risks tied to rapidly evolving data center and quantum technologies.
Yet investors should also be aware that heavy investment in fast changing data and AI infrastructure could…
Read the full narrative on Jacobs Solutions (it’s free!)
Jacobs Solutions’ narrative projects $14.4 billion revenue and $971.8 million earnings by 2028. This requires 6.7% yearly revenue growth and a $486.8 million earnings increase from $485.0 million today.
Uncover how Jacobs Solutions’ forecasts yield a $159.69 fair value, a 14% upside to its current price.
J 1-Year Stock Price Chart
Five members of the Simply Wall St Community currently see Jacobs’ fair value between US$120 and US$233 per share, reflecting wide divergence in expectations. Against this spread, Jacobs’ push into AI grade data centers and quantum projects raises important questions about execution risk and how reliably that backlog can translate into sustained improvements in returns and earnings quality.
Explore 5 other fair value estimates on Jacobs Solutions – why the stock might be worth as much as 67% more than the current price!
Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.
A great starting point for your Jacobs Solutions research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
Our free Jacobs Solutions research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Jacobs Solutions’ overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include J.
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