Colocation data center construction is booming, with the market projected to grow from $250.8 billion in 2024 to $417.9 billion by 2030. For colocation owners, success hinges on delivering reliable, scalable facilities on time and within budget. This is where a skilled Construction Management (CM) partner becomes indispensable.
Here’s why CM partners matter:
CM partners bring expertise in managing technical systems, coordinating diverse teams, and ensuring smooth execution across all project phases - from preconstruction to turnover. They also help mitigate risks, streamline procurement, and align infrastructure with future growth needs.
For colocation owners, choosing the right CM partner is the difference between a successful, timely launch and costly setbacks.
CM partners play a crucial role in turning an owner's strategic vision into actionable, day-to-day management. As Broadstaff Global explains:
"Data center construction management is where strategy turns into execution. It keeps owners, general contractors, engineers, vendors, MEP teams, commissioning teams, and operations aligned from planning through turnover."
This alignment is the cornerstone of a CM partner's value - translating high-level goals into clear accountability across every team involved in the project.
The way a CM partner engages in a project hinges on the owner's willingness to share control and risk. Choosing the right delivery model early on is essential. Here’s a breakdown:
Regardless of the chosen model, effective collaboration among all teams is the backbone of a successful project.
Colocation projects demand seamless coordination across diverse teams such as design engineers, MEP contractors, equipment vendors, commissioning teams, and operations staff. A CM partner ensures these groups work together rather than in silos.
One of their key tasks is managing Owner-Furnished, Contractor-Installed (OFCI) equipment - like switchgear, UPS systems, generators, and transformers. These items are purchased by the owner but installed by contractors, making meticulous tracking of long-lead items essential. From order placement to factory testing and site delivery, the CM partner ensures there are no delays that could derail the project. The table below highlights potential risks during team handoffs:
| Role | Primary Ownership | Common Handoff Risk |
|---|---|---|
| Owner/Developer | Business case, budget, and capacity | Delays in decision-making or unclear authority |
| CM Partner | Oversight, reporting, risk tracking | Field issues not escalated to the owner in time |
| General Contractor | Field execution, subcontractor coordination | Unclear scope or contractor responsibilities |
| MEP Contractors | Electrical, mechanical, and cooling installation | Late coordination between electrical and controls teams |
| Commissioning Team | Testing, verification, and validation | Being involved too late, leading to rework |
| Operations Team | Post-turnover performance and maintenance | Incomplete documentation or lack of training |
By aligning these teams, the CM partner ensures smooth transitions and effective collaboration throughout the project lifecycle.
The CM partner’s role extends to managing the intricate systems and processes that underpin colocation builds. Their oversight spans every phase of the project, focusing on both technical and procedural rigor to minimize risks. Each phase of the build demands a targeted approach:
| Phase | CM Focus | Key Systems and Processes |
|---|---|---|
| Preconstruction | Feasibility and utility access | Power availability, fiber connectivity, permitting |
| Design | Constructability and redundancy | MEP alignment, cooling strategies, scalability planning |
| Procurement | Long-lead tracking | Delivery schedules for switchgear, UPS systems, generators, and chillers |
| Installation | Trade coordination | Integrating controls, routing power/cooling, and quality assurance |
| Turnover | Commissioning and closeout | System validation, punch list completion, staff training |
Commissioning readiness is a critical factor in avoiding rework and system conflicts. By involving commissioning teams early - during design and preconstruction - and ensuring that electrical, mechanical, and controls teams collaborate on an integrated plan, CM partners reduce the likelihood of issues during energization. This level of oversight ensures the technical precision needed for colocation projects to succeed.
Generalist vs. Specialist CM Firms for Colocation Data Centers
In addition to managing teams and processes, CM partners must bring a high level of technical know-how to the table. Their expertise ensures that every system operates smoothly, making technical skills just as important as coordination for achieving critical project goals.
When it comes to colocation builds, many CM firms fall short in technical expertise. The systems involved - such as power distribution, cooling, structured cabling, and physical security - are highly interconnected. A failure in one area can create a domino effect, disrupting the entire project.
Take power infrastructure, for example. It’s a major cost driver and demands expert oversight. This includes utility feeds, substations, transformers, generators, fuel systems, switchgear, and UPS systems. Without hands-on knowledge of these components, a CM partner risks costly delays and inefficiencies. Cooling systems are another critical area. As AI workloads push rack densities from 4–10 kW to as high as 40–120 kW, CM partners need to be well-versed in liquid-cooled and hybrid architectures, along with their structural floor loading requirements. Other essential systems include high-speed cabling, biometric access controls, and advanced fire suppression - all critical for mission-critical environments.
This technical expertise carries over into the commissioning phase, where precise validation of systems is absolutely essential.
A key role of CM partners is to verify that systems perform under both normal and failure conditions. This involves overseeing factory witness testing (FWT) for major equipment, coordinating integrated testing across electrical, mechanical, and controls teams, and conducting failover simulations and power outage drills.
"Commissioning should not be treated as a final checklist. It should be planned during design, procurement, installation, and turnover." - Broadstaff Global
Additionally, CM partners should implement tools like Data Center Infrastructure Management (DCIM) systems and Building Management Systems (BMS) during installation. These tools allow for real-time validation of systems from the moment operations begin.
The technical demands of colocation projects expose a clear divide between generalist and specialist CM firms. The table below outlines where they differ:
| Feature | Generalist CM Firm | Mission-Critical Specialist CM |
|---|---|---|
| Primary Focus | Schedule, cost, and general contractor performance | Uptime, redundancy, and operational reliability |
| System Knowledge | Treats electrical and mechanical as independent parallel paths | Understands interdependencies that dictate precise work sequencing |
| Risk Management | Focuses on site logistics and field progress | Emphasizes long-lead procurement, utility readiness, and commissioning gaps |
| Commissioning | Often treated as a final phase or handover task | Integrated from design through turnover to ensure "five nines" reliability |
| Technical Depth | Standard MEP knowledge; building envelope focus | Deep expertise in power density, cooling redundancy, and DCIM integration |
As Leopard Project Controls notes:
"Data center construction rewards teams that think holistically, anticipate constraints early, and treat planning as an active management function rather than a static document."
For colocation owners, choosing the right CM partner can make all the difference - between a facility that launches on time and one that misses critical revenue opportunities.
Building a colocation facility is just the start. To stay competitive, operators must plan for growth, manage risks, and prepare for future demands. Over the past decade, U.S. data center load growth has tripled - and it’s expected to double or triple again by 2028. For colocation owners, this means scalability and risk management are just as critical as the technical systems themselves. A skilled CM (Construction Management) partner helps bring structure to these priorities. Beyond coordinating system commissioning, CM partners ensure scalability and energy strategies align with the owner’s goals. This proactive mindset even influences facility design, where modular planning helps prepare for future growth.
One of the smartest ways to prepare for growth is through modular design. Instead of building out full capacity from day one, experienced CMs use modular MEP systems (mechanical, electrical, plumbing) to allow infrastructure to be added in phases. This phased approach means operators can scale up power, cooling, and floor space gradually, based on tenant demand, which helps reduce upfront costs.
Take DataBank’s 480 MW campus in Red Oak, Texas, for example. It employs a "Universal Data Hall" design that supports power densities ranging from 5 kW to over 50 kW per cabinet. The slab flooring can be converted to raised flooring as cabinet needs evolve, and the layout avoids routing conflicts between current infrastructure and future expansions.
"Modular systems let operators align investment with actual tenant demand, reducing upfront costs and enabling future expansion." - RED Engineering Design
Another tool CMs use is Computational Fluid Dynamics (CFD) modeling, which simulates airflow in mixed-density environments. This ensures that adding high-density workloads, like AI, doesn’t disrupt cooling for other tenants. Solving these issues in a virtual model is far less expensive than addressing them in a live facility. This kind of planning directly supports efficient capacity expansion and cost-effective growth.
Delays in construction often stem from issues like long-lead equipment, unclear procurement plans, and late decisions. CM partners address these risks by resolving high-impact design and procurement choices early in the process. This reduces bottlenecks later on.
The Crusoe hyperscale campus in Abilene, Texas, is a great example of this approach. In April 2026, DPR Construction worked with Crusoe, Rosendin, and Southland Industries to build a 980,000-square-foot facility. Using a multi-prime, risk-sharing delivery model, the team broke ground just 10 weeks after the first design meeting. They delivered all data halls in under 18 months, thanks in part to off-site fabrication of over 600 exterior wall panels, which cut an eight-week installation process down to just seven days.
"Speed comes from reducing decision latency. Teams that move quickly establish early paths to resolve the few decisions that drive the most downstream uncertainty." - Mark Whitson, President, DPR Construction
Clear documentation is also critical. For example, when responsibility for Owner-Furnished, Contractor-Installed (OFCI) equipment isn’t clearly assigned, handoff issues often arise during energization and commissioning. This is exactly when such problems can cause the most disruption.
Energy efficiency is another key factor in risk management and long-term planning.
Power availability has shifted from being a secondary consideration to the main factor in project viability. Between 2020 and 2025, global construction costs increased from $7.7M per MW to $10.7M per MW, with projections reaching $11.3M per MW by 2026. CM partners who engage with utility providers early and challenge assumptions about grid capacity can give owners a real competitive advantage.
"Power is no longer a side conversation. It is not a site-selection detail. It is the filter that decides which deals move, which timelines are real, and which markets can keep absorbing large-scale data center work." - Brian Binke, CEO, The Birmingham Group
CyrusOne’s 760 MW campus expansion in Freestone County, Texas, is a prime example. The company is securing land and grid connectivity years before the full capacity is needed. For CM partners, this means treating utility coordination, permit cycles, and power agreements as critical milestones - not secondary tasks. This approach prevents compressed commissioning schedules later on, especially as commissioning talent is becoming harder to find..
Standardizing block redundant power topologies - such as 4 MW blocks - also simplifies scalability. This method ensures predictable redundancy as the facility grows, making future upgrades easier without requiring a complete redesign of the electrical distribution system.
The success of colocation projects heavily depends on assembling a skilled Construction Management (CM) team. This team acts as the backbone, ensuring every phase runs smoothly by filling the right roles with the right expertise.
A colocation CM team is a mix of specialists, each bringing unique technical expertise to the table. Here's a breakdown of the key roles and their responsibilities:
| Role | Responsibility | Qualification |
|---|---|---|
| Project Manager | Overseeing planning, budgeting, and scheduling | PMP certification and experience with mission-critical infrastructure |
| MEP Specialist | Managing electrical, mechanical, and cooling systems | Expertise in redundancy architectures and Tier III/IV standards |
| Commissioning Agent | Validating and testing systems | Strong background in Integrated System Testing (IST); early involvement in design |
| QA/QC Professional | Ensuring quality and documentation | Skilled in technical documentation and turnover processes |
| Network Engineer | Establishing high-speed connectivity infrastructure | Knowledge of server-to-network integration |
| Safety/QC Lead | Overseeing site safety and installation quality | Experience in high-voltage environments |
"The project manager is the linchpin of the project, responsible for overall planning, execution, budget control and schedule adherence. Experience in data center construction is highly desirable." - Marlissa Collier, Journalist, Procore
One role that often gets overlooked is the commissioning agent. Many projects bring this professional in too late, treating them as a final checkpoint. This approach can lead to costly rework. Engaging a commissioning agent early - during the design and procurement phases - helps ensure systems are properly tested and ready for handover without delays.
When considering a CM partner, it’s not just about their portfolio of completed projects. What truly matters is their ability to foresee potential issues and address them before they escalate into delays.
Focus on their experience with Tier III and Tier IV environments, where uptime requirements demand precise execution. Ask how they’ve managed long-lead equipment in the past and how they track OFCI (Owner-Furnished, Contractor-Installed) items to avoid bottlenecks.
"A delayed data center is not just a late building. It may mean delayed customer capacity, delayed cloud or AI workloads, delayed revenue, and missed market timing." - Broadstaff Global
Scalability is another key factor. A CM partner who excels at single-site builds might struggle with multi-site programs across diverse utility markets and regulations. Instead of relying solely on references, request specific examples of their multi-site execution capabilities. With a clear evaluation framework, partnering with a firm like iRecruit.co can simplify the hiring process for mission-critical roles.
Finding qualified CM talent for colocation projects is no easy task. The stakes are high, making every hire a crucial decision.
"The paramount differentiating factor is the non-negotiable requirement for deep technical fluency in mission-critical infrastructure, particularly within complex MEP/FP systems, advanced cooling technologies, and rigorous uptime standards." - Tanya Gallardo, Managing Director, JRG Partners
iRecruit.co specializes in recruiting for construction roles in data centers, infrastructure, and energy projects. They focus on placing senior project directors, MEP leads, and commissioning experts with the specific expertise needed for colocation builds. By sourcing candidates with direct experience in hyperscale and mission-critical environments, iRecruit.co ensures that CM firms and project owners spend less time sifting through resumes and more time advancing their projects. Their approach integrates workforce planning into the early stages of project strategy, setting the stage for smoother execution.
Aligning construction management (CM) capabilities with project goals is critical for colocation data center construction, where there’s no room for mistakes. With power systems accounting for 40–45% of total construction costs and critical equipment prices increasing by 40–50% since 2021, careful planning is non-negotiable. Treating CM selection as just another procurement task risks derailing the entire project.
A skilled CM partner brings more than just experience - they bring the ability to identify and address potential handoff issues between electrical, mechanical, and controls systems before they become major problems. They also prioritize utility interconnection timelines, which can take 18–24 months, as essential milestones rather than leaving them as afterthoughts. Commissioning, in their hands, becomes an integral, ongoing process throughout design and procurement, rather than a last-minute checkbox.
"What distinguishes successful data center projects from troubled ones is rarely the ambition of the design or the sophistication of the technology. More often, it is the quality of planning and the discipline of scheduling." - Leopard Project Controls
With AI workloads pushing rack densities to 40–120 kW and a projected labor shortfall of 1.9 million workers by 2033, preparing for future capacity - whether structural, mechanical, or workforce-related - is more essential than ever. These challenges underscore the importance of selecting a CM partner who prioritizes technical knowledge, rigorous risk management, and scalability from the start.
Companies like iRecruit.co help address these needs by connecting pre-qualified, mission-critical CM professionals to preconstruction roles, ensuring schedules stay on track and reducing risks during execution.
Choosing between CM at-Risk and CM as Advisor often comes down to the project's complexity, risk tolerance, and how involved the owner wants to be.
CM at-Risk is a great fit for projects that are intricate or have tight deadlines. It brings early design input, preconstruction services, and shared risk between the owner and the construction manager.
On the other hand, CM as Advisor works better for owners who have strong project management skills and want to stay actively involved. In this approach, the construction manager acts as a consultant and doesn’t take on the construction risks.
Ask the construction manager (CM) about the ownership of the OFCI (Owner-Furnished, Contractor-Installed) equipment. Clarify how lead times are monitored and who is responsible for coordinating storage, delivery, installation, and testing. These specifics are essential to keep the project running smoothly and to prevent potential delays.
Commissioning should kick off during the design and preconstruction stages. Getting started early allows teams to validate systems and spot potential problems before construction wraps up. This proactive approach helps ensure a smoother project completion and better operational readiness.
