The numbers around data center projects are astounding, and at times difficult to comprehend given the massive size of the projects. Reports of double-digit growth in sales revenues this year have become commonplace. If not managed properly, double-digit growth could unknowingly invite double-digit risk.

As manufacturers and distributors prepare their budgets for 2027, current plans for new data centers, along with carry-over projects from this year, present some unique challenges. Unprecedented demand could put a significant strain on capacity. For many producers, capacity is already being pushed to its limits, which has several large providers either planning or already in the process of adding and expanding manufacturing capabilities.

Forecasting product availability may be the most effective and powerful tool your sales organization can use in planning for 2027. The best way to accomplish this is to meet with customers now to discuss expectations and plan together for their needs, rather than waiting for them to call you. In the past, when forecasting a customer specific budget, barring unusual circumstances, the sales team was likely to predict sales growth by assumption (“You grew +5% this year, let’s shoot for the same next year.”)

With the explosive growth of data centers, this kind of planning could become detrimental to growth. For electrical manufacturers, a budget conversation that centers only on sales growth could turn out to be disastrous if as the new year unfolds, your company doesn’t have the manufacturing capacity to support the customer’s needs.

If, as industry trends indicate, it’s safe to predict that there will be revenue growth, then perhaps the question should shift from, “How much business can you give us?” and instead ask, “What you are expecting of us?” Electrical manufacturers should identify what products customers will need and when they think they will they be needed. Information like this is important and should be shared with production teams.

It’s also important to note that data centers are in some quarters a controversial topic. In the 2026 mid-term elections some politicians ran on platforms calling for the curtailment of data center construction or even eliminating it. Data center projects could also be affected by factors such as a slowing economy or increased regulation.

Choosing to have conversations about your customer’s expectations in advance could help you to avoid disappointing your customer and potentially losing business because of a lack of availability of your company’s products. Obviously, you will want to be as prepared as possible to take full advantage of business opportunities driven by the construction of data centers, but it pays to recognize that your organization was built on serving a variety of construction sectors. Companies in construction sectors outside of data centers will continue to have needs, and they will count on your firm to continue to supply them with the materials they use to conduct their business.

Your sales planning and projections for 2027 should, by all means, include your strategy to grow existing business as well. To a sales organization, budgeting is both a snapshot of predicted, results and an essential component in strategic planning. Unlike photographs that we file away for nostalgic purposes, the budget snapshot should be used by sales professionals as a living document continuously refreshed to reflect current trends for risk and for growth.

When it comes to managing data center project contracts, one possible solution for managing customer delivery expectations during this volatile period of product availability is to schedule meetings -- perhaps monthly or bi-weekly -- with your company’s supply chain and production management teams and compare actual monthly results to budget forecasts, Doing this could assist production planning and uncover any hidden lead time issues that could upend existing business commitments.

The challenge for electrical manufacturers and distributors during this planning and budgeting season is to build a strategic plan that puts your firm in a position to take full advantage of special opportunities, while avoiding double-digit risk.

As the founder and president of formed Sincerely Speaking llc, Mark Serafino coaches and mentors individuals and groups in personal communications, leadership and management skills. He spent more than three decades working in the distribution industry, including many years as a senior sales executive with OmnicCable. You can reach him at [email protected].