Dycom’s National Technology Integrators (NTI) acquisition soups up its data center and communications capabilities

Multifaceted benefits

While NTI may only now be becoming integrated into the Dycom fold, its Power Solutions division has worked with Dycom for several years, which is how it became aware of the company. 

Peyovich said that after Dycom started talking to DTI about opportunities on the communications side and the work inside the fence at other facilities around the country, it identified efficiencies and began conversations about how it could “make them part of the Dycom Family.”

“What you see ultimately is the potential for campuses to have not only Power Solutions doing the electrical inside, but NTI also doing the structured cabling, while our communications business is doing the inside defense work and then ultimately connecting it back to the long-haul and middle mile routes,” he said.

Similar to the way Power Solutions works with general contractors, DTI also has relationships with hyperscalers.

“We get to have conversations on both those fronts, and we're already seeing, before the acquisition, just in conversations to try and sell that as a partnership, a good connection there,” Peyovich said. “And we think that's going to go exponential here now that they'll be part of the Dycom family next quarter.”

Middle mile picks up

Dycom’s timing in ramping up its data center capabilities comes as its customers are expanding their middle-mile and long-haul fiber networks to meet hyperscalers’ data center demands.

The company reiterated the forecast it issued during its second-quarter 2026 earnings call that outside-plant data center network infrastructure will be a $20 billion opportunity over the next 5 years alone.

Peyovich said its customers are being aggressive in pursuing the middle-mile fiber opportunity, which is set to ramp up this year, with significant growth in 2027 and beyond.

“We talked about this $20 billion opportunity probably 5 quarters ago, set related to long-haul, middle-mile. That has certainly grown,” he said. “We've updated numbers internally. What you've seen increasingly is our customers being very vocal about it.”

He added that one of Dycom’s customers said it is in discussions with hyperscalers about routes that could include 7,500 to 10,000 fiber strands per route. This is far beyond today’s usual amount of 864- or 1728-count fiber.

“If you think about getting to 7,500 or 10,000 over time, it goes back to what we said,” Peyovich said. “This is a decade-plus-long build to get the architecture that they need out there to support the continued development and the continued consumption of data.”

Communications and Building Systems dominate revenues

Dycom’s first-quarter 2027 financial results reflected growth in its communications and building segments.

Organic revenue of the Communications segment grew 24.7% to $1.57 billion, and Building Systems grew significantly compared to the prior year quarter. Building Systems represented approximately 20% of total revenue for the quarter.

Driven by ramping fiber-to-the-home (FTTH) programs, increased long-haul and middle-mile fiber infrastructure builds, and growing maintenance and operations services, Dycom’s communications revenue was $1.57 billion and grew 24.7% organically.

Likewise, Dycom saw revenue gains in Building Systems and Power Solutions. Building Systems’ total contract revenues were $395.4 million, while Power Solutions delivered $395.4 million of revenue.

During the first quarter, Dycom reported total contract revenues of $1.97 billion, up 56.1% year-over-year. 

“This reflects the strength of relationships and continued diversification across our customer base,” said H. Andrew DeFerrari, CFO of Dycom.

The company has forecast growth for both its Communications and Building Systems segments.

For the Communications segment, Dycom expects contract revenues of $6.03 billion to $6.2 billion, representing organic growth of approximately 12.6% to 15.8% from last year.

For the Building Systems segment, we expect contract revenues ranging from $1.35 billion to $1.45 billion.

Looking forward to its full fiscal 2027, DeFerrari said Dycom “now expects total contract revenues to range from $7.38 billion to $7.65 billion.”

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