Active U.S. Chiller-Boiler Construction Tops $1 Billion

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Facilities throughout the country are installing new equipment or upgrading existing boilers and chillers to produce the hot and cold water and steam needed to keep buildings functioning and occupants happy.

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Always in Progress

Boilers and chillers are necessary components of most medium- and large-scale facilities and can represent substantial construction projects when providing services for multiple buildings at institutions such as college campuses, hospitals and correctional facilities. At seemingly every moment, someone, somewhere in the U.S. is at work on a boiler and/or chiller system.

To this end, Industrial Info Resources data find around $1.3 billion worth of U.S. boiler and chiller projects that are actively under construction, and another $2.4 billion worth that are in the planning and engineering stage.

University Boiler Construction

By far, college and university campuses account for the largest amount of spending for boiler and chiller systems. One of the largest of these projects is underway at Rutgers University's New Brunswick campus in New Jersey. General contractor Joseph Jingoli & Son broke ground late last year on what will be a 32,000-square-foot central heating plant that will house two 20,000-pound-per-hour water tube boilers. The campus' current heating facility is antiquated and requires updates to maintain environmental compliance. It was deemed that starting from scratch with the latest equipment was the way forward for Rutgers. The $129.4 million project is expected to wrap up in the summer of 2027. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

Rutgers is by no means the only higher education institution getting new boilers and chillers. Of the $1.3 billion worth of the projects under construction that Industrial Info Resources is tracking, more than two-thirds of them with a collective value of $900.6 million are at college and university campuses.

While the Rutgers project pushes New Jersey to the top for university utilities spending, Texas isn't far behind, with boiler or chiller projects underway at five different campuses throughout the state, including its flagship university: The University of Texas at Austin (UT). Since 2023, UT has been in the process of replacing 1940s-era 75,000-pound-per-hour steam boilers with two new 175,000-pound-per-hour units. The facility upgrades are expected to be completed later this year and will more than cover the campus' existing needs, with enough capacity for future growth. Subscribers can learn more about the $44 million boiler construction project by clicking here.

Hospital Construction

Hospitals and medical campuses account for about $185 million worth of active U.S. boiler and chiller construction. The U.S. Department of Veterans Affairs, with its multiple medical center campuses, collectively leads spending. It is responsible for one of the largest hospital utilities projects, which is underway at the VA campus in Louisville, Kentucky. Since 2023, contractors have been underway with a new ground-up central utility plant, including boilers, chillers, diesel generators and cooling towers. After more than three years of construction, the $64 million project is expected to wind down this year.

Alternative Energy Projects

While the majority of utilities installed these days are natural gas-fired, Miami University of Ohio is taking a different tack by establishing a geothermal well to power two new 1,000-ton chillers that the university is installing. Work on the chiller/power project has been underway since 2024 and is expected to be completed this summer.

Key Takeaways

• Industrial Info Resources is tracking $1.3 billion worth of U.S. boiler and chiller projects under construction and another $2.4 billion in the planning and engineering stages.
• College and university campuses feature most prominently in this utilities work, with hospitals also underway with substantial investment.
• Miami University of Ohio is wrapping up the installation of two new chillers that will be powered by geothermal energy.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).