Argan, Inc. AGX is gradually building exposure to the data center market through its Teledata segment, which could support revenue growth. The segment aligns with rising demand for digital infrastructure, especially as data centers require reliable power and advanced network connectivity. This positioning complements the company’s broader capabilities in power and infrastructure development.
Teledata provides project management and construction services across power distribution, communication networks and data infrastructure for commercial and industrial customers. The segment also supports federal and military locations that require high security clearance, along with data center-related work. This diversified exposure allows the company to participate in multiple layers of infrastructure tied to data center expansion.
In the fourth quarter of fiscal 2026, Teledata revenues were $5 million compared with $3 million in the year-ago quarter, contributing 2% of consolidated revenues. The segment ended fiscal 2026 with a backlog of $8.4 million, indicating early-stage growth but still a small contribution to the overall business.
The company also added a $125 million project in the Industrial segment linked to the data center market, highlighting broader participation beyond Teledata. Rising electrification, growth in AI and increasing data center demand are putting pressure on aging power infrastructure. This creates a need for reliable 24/7 energy, where the company’s expertise in building complex power facilities becomes relevant.
While Teledata is still a small part of the business, improving demand trends and support from other segments indicate it can contribute to overall revenues over time.