CrossCurrents: Grid Modernization, Supply Chain Risks and the Future of HVACR
Editor’s note: The HVACR industry doesn't operate in a vacuum—and neither should the news you rely on.
Each installment off CrossCurrents curates the most important headlines from outside the traditional HVACR press, drawing on trusted reporting from across our parent company EndeavorB2B's network. From construction and manufacturing to energy, technology, workforce development, regulations, facilities management, and the economy, these are the stories that may not make the HVAC headlines but could influence the way you do business.
1. Designing and Powering the Future Grid
The U.S. electric grid is facing mounting pressure from growing electricity demand driven by AI data centers, electric vehicles, manufacturing expansion, and broader electrification efforts. In response, the Department of Energy has launched its Grid Modernization Initiative, including nearly $1.9 billion in funding to accelerate transmission upgrades, advanced conductors, and other grid technologies. Utilities nationwide are investing in transmission lines, substations, grid automatio.n and energy management systems to improve capacity, reliability, and resilience. However, aging infrastructure, transformer shortages, equipment lead times that can stretch three to four years, permitting delays and workforce constraints are slowing progress. As utilities explore technologies such as battery storage, distributed energy resources, advanced monitoring, and AI-driven grid management, industry experts emphasize the importance of early planning, utility coordination, and long-term infrastructure investments to keep pace with future power needs.
Why HVAC contractors should care: Grid capacity and reliability will increasingly influence HVAC equipment installations, building electrification, heat pump adoption, EV charging, and commercial construction projects. Contractors should understand how local utility constraints, electrical service limitations, and equipment availability could affect project costs, installation timelines, and customer expectations. As electrification drives demand for more electrical capacity, opportunities will also grow for contractors who can help customers improve energy efficiency, manage electrical loads, and plan HVAC upgrades around evolving grid capabilities.
2. Super El Niño: Supply Chain Risks
The 2026–2027 Super El Niño is expected to peak in November and December 2026, with weather-related disruptions potentially continuing through the first half of 2027. According to a new report from Everstream Analytics, shifting weather patterns are creating significant supply chain risks, particularly across Southeast Asia, where drought, wildfires, haze, and typhoons threaten manufacturing, transportation, and agricultural production. Other concerns include low water levels restricting shipping along Europe's Rhine River and continued Panama Canal limitations. While food and beverage supply chains face the greatest exposure, fertilizers, chemicals, energy, electronics, and industrial manufacturing are also vulnerable.
Why HVAC contractors should care: Weather-related supply chain disruptions could affect the availability and cost of HVAC equipment, refrigerants, electrical components, metals, and other essential materials. Contractors should monitor supplier lead times, anticipate potential price increases, and maintain relationships with alternative suppliers to minimize project delays. Proactive purchasing and inventory planning will be particularly important heading into 2027 as contractors navigate equipment availability, project scheduling and tighter operating margins.
3. California Enacts New Water Disclosure Requirements for Data Centers
California Gov. Gavin Newsom has signed a seven-bill legislative package establishing new water, electricity, and land-use requirements for data centers as demand for AI and digital infrastructure accelerates. Two measures, AB 2469 and AB 2619, specifically address water consumption, requiring proposed data center projects to disclose projected water use, identify available supplies, outline efficiency measures, and account for drought conditions. Developers also must cover the cost of water infrastructure upgrades needed to serve their facilities. The legislation gives local governments and water utilities greater visibility into the resource demands of data center development as communities weigh the economic benefits against infrastructure capacity and environmental impacts.
Why HVAC contractors should care: Data center growth represents a significant opportunity for HVAC contractors specializing in high-performance cooling, water-cooled systems, heat rejection, controls, and energy efficiency. However, increasing scrutiny of water consumption could influence cooling-system design, technology selection, and project requirements. Contractors who understand water-efficient cooling strategies, including alternative cooling technologies and heat-reuse opportunities, may be better positioned to compete for data center projects as sustainability and resource management become increasingly important considerations.
4. Tulsa Schools Face 185 HVAC Work Orders as District Plans $67.8M in System Upgrades
Tulsa Public Schools is facing a widespread HVAC maintenance challenge, with approximately 185 open work orders across 62 campuses as extreme heat strains aging cooling equipment. District maintenance crews have been working to address the backlog, with outside contractors brought in to supplement staff. Temporary measures include relocating classes, moving recess indoors, deploying fans, and reducing heat-generating equipment use. The problems come as the district prepares to invest $67.8 million in HVAC repairs and replacements through a voter-approved $609 million bond package, targeting aging and obsolete equipment and controls. Tulsa's situation reflects a broader challenge for school districts nationwide, many of which are dealing with deferred maintenance, aging mechanical systems, and growing infrastructure needs.
Why HVAC contractors should care: School districts represent a significant market for HVAC service, maintenance, retrofits, and equipment replacement, particularly as aging systems struggle to keep pace with increasingly demanding weather conditions. Tulsa's experience also highlights opportunities for contractors to help facilities managers prioritize preventive maintenance, identify equipment nearing end of life, and develop phased replacement strategies that minimize classroom disruptions while improving system reliability and performance.
5. Podcast: How AI is altering the landscape of manufacturing cybersecurity
Artificial intelligence is accelerating cyberattacks against manufacturing and critical infrastructure, giving organizations less time to identify vulnerabilities and deploy defenses, according to a Smart Industry podcast featuring Scott Achelpohl and Dennis Scimeca. The discussion examines recent cyberattacks targeting companies including GE, Philips, and Shell, as well as vulnerabilities involving Siemens programmable logic controllers (PLCs) used across manufacturing, water treatment, and energy facilities. AI is helping threat actors identify targets, develop attack scripts, and exploit weaknesses faster, while manufacturers face challenges applying security patches across complex networks with legacy equipment, multiple software versions, and operational requirements.
Why HVAC contractors should care: As HVAC systems become increasingly connected through building automation, smart controls, remote monitoring, and cloud-based management platforms, cybersecurity is becoming an operational concern for contractors and their customers. Contractors servicing commercial buildings, manufacturing facilities, and critical infrastructure should understand the risks associated with connected equipment, secure remote access, and outdated controls. Cybersecurity knowledge can help contractors protect customers, reduce system vulnerabilities, and become more valuable partners in managing increasingly connected buildings.
