Japanese construction firm Obayashi agreed to purchase Arizona-based GCON and two affiliated companies through its US subsidiary Webcor, Nikkei reported. The deal, signed October 2, targets infrastructure demand driven by artificial intelligence expansion.
The transaction value wasn’t disclosed but is estimated at tens of billions of yen (¥10 billion equals $66.4 million). The share transfer should close by mid-November.
GCON operates across ten states, providing construction services for data centers, semiconductor facilities, healthcare, and commercial projects. The acquisition positions Obayashi to capitalize on surging US data center construction, particularly in Arizona, where the market has experienced explosive growth.
Greater Phoenix posted 669 megawatts of colocation leasing activity by end-2024, making it the nation’s second-largest growth market for data centers. AI facilities require 40-250 kilowatts per rack, compared with 10-15 kilowatts for traditional data centers, necessitating specialized construction expertise.
The move addresses weakness in Obayashi’s domestic market, where the company faces labor shortages and limited expansion prospects. Webcor operates from California, and the acquisition extends its reach into neighboring Arizona.
Obayashi reported 12.7% revenue growth for fiscal 2025, suggesting the company has capital to pursue overseas expansion as it diversifies beyond Japan’s constrained construction sector.
