Stantec to acquire Environmental Systems Design, Inc., a leading building engineering design firm specializing in mission critical and data center expertise

EDMONTON, Alberta and NEW YORK and CHICAGO, June 08, 2023 (GLOBE NEWSWIRE) -- TSX, NYSE: STN

Stantec, a global leader in sustainable design and engineering, has signed an agreement to acquire Environmental Systems Design, Inc. (ESD), a 270-person engineering firm headquartered in Chicago. Founded in 1967, ESD has built a reputation for excellence and innovation in high-performance design with a roster of industry-leading clients. The terms of the transaction are not disclosed.

The acquisition of ESD significantly deepens Stantec’s expertise in mission critical facilities and data center design. Mission critical facilities represent a rapidly growing segment of purpose-built infrastructure that require an increased level of reliability. These facilities—spanning nearly every major industry—are designed to maintain building infrastructure, emergency dispatch, data storage, or other critical functions in the face of inclement weather and utility outages. Data centers, such as hyperscale facilities, require special, resilient design considerations developed by uniquely qualified teams with regular exposure to the evolving needs of large-scale companies. 

The acquisition of ESD expands Stantec’s mechanical, electrical, and plumbing (MEP) and structural engineering practice by 40 percent in the US. These added resources significantly deepen the firm’s smart building engineering capabilities that support the workplace of the future and the emerging trends of decarbonization, building repositioning, and adaptive reuse.

“Merging talent with ESD positions Stantec as one of the top integrated design firms in the US market,” said Leonard Castro, executive vice president and business operating unit leader for Buildings at Stantec. “Our expanded services in data center, smart building design, and high-performance buildings will offer our clients the flexible and stable facilities that meet their operational needs into the future.”

“Stantec is a top-tier firm that shares our vision to improve society through the built environment,” said Raj Gupta, executive chairman at ESD. “ESD has increased the depth and breadth of its services in recent years. Joining Stantec expands our offering globally and creates exceptional career growth opportunities for our employees.”

Critical Project Experience
ESD provides data center design services for several industry-leading technology clients. ESD was recently retained by a confidential client to provide peer review and hyperscale data center design services and subsequently engaged in multiple hyperscale data centers on its behalf across the US. Hyperscale campus developments scale from a single 500,000 square foot (20 to 30 megawatts capacity) facility to multiple facilities spanning several million square feet (300+ megawatts capacity). Multiple sites throughout the country share a baseline design with local adaptations and are designed for efficient phased buildouts without interruption to live facilities.