Manufactured Housing Makers See Orders Surge From Data Center Builders
Cavco Industries reported a surge in orders for manufactured homes tied to data center construction, according to CEO Bill Boor. The company acquired American Homestar for $190 million last year, expanding its manufacturing presence in Texas, where data center development is accelerating. A typical 100-megawatt data center requires hundreds of workers during construction, though only dozens to operate once complete, per a University of Southern California Climate Center report.
US data center capacity is projected to reach 194 gigawatts by 2035, and Texas is expected to overtake Virginia as the world’s largest data center market by 2030, according to Jones Lang LaSalle. Manufactured homes, built in factories and transported on permanent chassis, offer faster delivery than traditional housing and can be relocated when projects finish. That flexibility has historically made them popular for housing workers in remote oil fields in West Texas and North Dakota.
Data center projects face growing community opposition in markets from Texas to South Florida, but approved projects still need temporary workforce housing. Some builders are offering perks including free steaks and golf simulators to attract labor to construction sites. Cavco shares fell as much as 5 percent Friday morning after Thursday’s earnings report before recovering to trade flat.
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