Building data centers is one of the most complex construction challenges today, requiring expertise far beyond traditional projects. These facilities demand precision, technical knowledge, and the ability to manage high-stakes environments. Here's what you need to know:
The demand for data center construction is surging, with the U.S. hosting 45% of global facilities and energy consumption projected to reach 720 terawatt-hours by 2030. Success hinges on combining technical knowledge with leadership and precise execution to meet strict deadlines and zero-downtime requirements.
Data Center Construction: Key Statistics and Industry Growth
Building data centers isn't your average construction project. These facilities demand pinpoint accuracy and a deep understanding of complex systems because even a minor mistake can result in costly downtime. This is a high-stakes field where the required expertise goes far beyond general construction knowledge.
Mechanical, electrical, and plumbing (MEP) systems are the lifeblood of any data center, often making up 30% to 40% of total construction costs. They're also the most common source of delays. Construction managers need a strong grasp of power distribution systems, including high-voltage power service, switchgear, transformers, uninterruptible power supply (UPS) systems, and backup generators designed to handle massive electrical demands.
Temperature control is another critical area. Data center servers must operate within a tight temperature range of 68 to 72 degrees Fahrenheit. Managers need expertise in computer room air conditioning (CRAC) units, chillers, cooling towers, and airflow management techniques like hot/cold aisle configurations. Scott Bornman, Principal of Operational Excellence at Procore Technologies, highlights the importance of proactive problem-solving:
"The really good contractors interpret the drawings, ask questions and then iterate on the interpretation. They continue to ask follow-up question after follow-up question to understand the intent."
Redundancy is non-negotiable. For Tier III data centers, downtime is limited to just 1.6 hours per year, requiring N+1 redundancy (every critical component has a backup). Tier IV facilities go even further, demanding 2N redundancy - complete system duplication. Managers must also be proficient with Building Information Modeling (BIM) tools like Revit and Navisworks to detect clashes in spaces packed with conduit, chilled-water piping, and fire-suppression systems.
Another challenge is managing lead times for critical equipment, which can range from 16 to 60 weeks. For instance, switchgear and transformers may take up to 60 weeks, while generators and chillers require 16 to 24 weeks. Aligning these timelines with the project's critical path requires careful planning and expert scheduling.
Data center construction demands precise scheduling to account for specialized trade sequences and dependencies on long-lead equipment. Projects must be broken into clear phases, ensuring that electrical, mechanical, and structural teams complete their work in the correct order to avoid cascading delays.
To keep everything on track, construction managers rely on tools like Gantt charts and centralized project management platforms. These tools provide visual timelines and help identify potential conflicts between trades before they escalate into costly problems. Regular coordination meetings with electrical, mechanical, and IT contractors are essential to prevent sequencing issues.
Modular construction methods are increasingly popular. Prefabricated cooling skids and electrical raceways are built off-site, speeding up timelines and reducing congestion on-site. However, this approach requires just-in-time delivery schedules to minimize waste and manage limited lay-down space effectively.
The data center sector is growing fast. Back in 2014, data center construction accounted for just 5% of office construction spending. By 2024, that number is expected to hit 32%, with projections reaching 40% by 2028. For hyperscale facilities, budgets can exceed $3 billion, adding another layer of complexity to scheduling and quality management.
Technical expertise and meticulous scheduling set the stage for commissioning, a process that ensures every system performs as intended under demanding conditions. Commissioning isn't a one-time event; it's a continuous process that spans the entire lifecycle of the facility.
Commissioning involves five levels, each building on the last:
For complex facilities, Level 5 commissioning can take 20 or more working days. Ryan Orr from the Uptime Institute underscores the importance of this process:
"Commissioning is a continuous process that, when executed properly, helps ensure that the systems will meet mission critical objectives, design intent, and contract documents."
When systems fail commissioning tests, root-cause analysis becomes critical. Instead of simply re-running tests, managers must identify and address the underlying issues to prevent future failures. This is especially important because data centers are 70% to 75% more likely to experience outages caused by human error compared to other facilities.
Managing external partners effectively is just as important as having technical expertise when it comes to ensuring smooth project execution.
Picking the right contractor can make or break your project by influencing timelines, budgets, and quality. To ensure you’re partnering with the best, prequalify contractors by checking their recent megawatt delivery track record, confirming their Experience Modification Rate (EMR) is below 1.0, and verifying they have in-house MEP oversight with proficiency in BIM tools like Revit and Navisworks. Brett Semans, Managing Principal at DCi Data Center Infrastructures, emphasizes this point:
"When choosing a partner to help manage data construction project, remember that they are a proxy for you, the owner. That means your needs should always come before the needs of the contractor".
Selecting the right contract structure is equally important. For cost certainty, consider a Construction Manager at Risk (CMAR) agreement with a Guaranteed Maximum Price (GMP). If your project is MEP-intensive, an Integrated Project Delivery (IPD) model might be better, as it shares both risks and rewards. To stay on schedule and within budget, include delay penalties in contracts and demand full transparency on procurement costs, such as freight, storage, and surcharges.
Coordination is key. Assign a sequencing specialist to manage over 15 disciplines simultaneously, conduct daily 15-minute huddles to review plans for the day, and implement Inspection & Test Plans with clear hold points to verify each critical stage before moving forward. Protect yourself legally by collecting conditional lien waivers with pay applications and unconditional waivers upon payment. As Semans points out:
"Coordinating tradespeople and tasks isn't just a task for the beginning of a project, it is a living part of project management that must be continually monitored and realigned".
Proactively manage procurement by defining who is responsible for securing major assets and tracking long-lead items to align with your project’s critical path. Establish a submittal register based on specification sections with required lead times, and involve your Commissioning Agent (CxA) early in the process to ensure there’s enough time for Level 4 and Level 5 testing. These steps help minimize human error and keep your project moving forward as planned.
When it comes to mission-critical projects, technical know-how alone won't cut it. Strong leadership is essential to steer these high-stakes initiatives. In fact, top managers spend 60% to 80% of their time addressing human factors, compared to just 8% to 12% for average managers. This difference often explains why some projects succeed under pressure while others fall apart.
Overseeing a data center build requires tailoring communication to two very different audiences: on-site teams and executives. While on-site workers benefit from hands-on guidance, executives expect concise, data-driven updates delivered through centralized project management tools.
Decisiveness is another hallmark of effective leadership, particularly in high-pressure environments. Phil Schwarz, Senior Project Manager at Executive Construction Inc., emphasizes this point:
"Effective leadership isn't just about issuing directives; it's about inspiring teams, navigating challenges, and drawing from past experiences to chart a course forward".
Hesitating over small decisions can derail progress. To avoid this, gather the necessary information quickly, set personal deadlines for making choices, and rely on your expertise to push forward. Tools like mobile platforms and BIM software can help managers make informed, timely decisions while maintaining transparency and trust within their teams. These tools also allow for real-time adjustments when issues arise and provide the authority to decline changes that don't align with project specifications. Combined with technical expertise, these leadership and soft skills are critical for delivering data center projects successfully.
Notably, these decision-making practices also play a direct role in upholding strong safety protocols on-site.
Nathan Hatch, President and CEO of C7 Data Centers, underscores the connection between organization and safety:
"A poorly organized person invites crisis. A well-organized data center manager will significantly reduce incidents caused by human error".
Leadership and organizational skills are particularly vital in environments where projects could consume as much as 720 terawatt-hours of electricity by 2030.
To maintain a culture of safety, aim for an EMR below 1.0 and conduct daily job-hazard analyses. Near active data halls, implement negative-pressure tents to control dust and use real-time accelerometers to monitor vibrations. Daily safety briefings ensure that various trades can work together effectively, while regular site drills and Emergency Operating Procedures prepare teams for critical failures.
Emotional intelligence is just as important as safety protocols. Russell Padilla II, Project Manager at Guido Construction, explains:
"You use your 'emotional intelligence' and people skills along with your technology intelligence and help every day to transfer the senior superintendent knowledge of decades of building experience and put that into your data".
Building trust through active listening, offering multilingual communications (e.g., Spanish), and ensuring PPE fits all body types are small but impactful steps. These inclusive practices not only improve safety but also boost efficiency on-site.
Right now, more than half of data center operators are grappling with one major issue: finding top-tier talent. In fact, 42% of these operators also face major hurdles in keeping employees, all thanks to what experts are calling a "competitive talent market". And it’s not slowing down - by the end of 2025, the industry will need 325,000 new full-time data center jobs worldwide. The problem? Traditional hiring methods just aren’t cutting it. While the typical hiring process drags on for 90 days, skilled trades in high demand are snatched up in just 10 days. This growing gap calls for a fresh approach to recruitment.
Specialized recruitment firms are stepping in to bridge this gap. These firms leverage vast networks of pre-vetted candidates who bring hands-on expertise in areas critical to data center operations, like MEP systems, project scheduling, and commissioning. They focus on professionals who’ve climbed the ranks from practical trade roles to leadership positions in design-build projects. This allows them to quickly deploy talent to booming data center hubs such as Arizona, Virginia, and Texas [1,3].
Dr. Glen Duncan, Data Center Research Director at JLL, highlights how the industry is adapting:
"Many operators are resorting to engaging external services firms with data center practices... to staff and run these facilities in the interim".
Take firms like iRecruit.co - they’ve fine-tuned their process to meet this demand. They specialize in finding candidates for mission-critical roles, including project management, MEP systems, scheduling, and commissioning. Their approach? A heavy emphasis on skills-based screening. For example, they assess proficiency in Primavera P6 or experience with power-intensive projects for major hyperscalers. This method can expand the talent pool by up to 20 times compared to conventional hiring practices that rely heavily on background checks.
Specialized recruitment also plays a key role during the bidding phase of projects. Having access to bid-ready resumes can showcase immediate project readiness, which is a huge advantage in emerging markets where experienced local talent is hard to find. As AEC expert Brent Arnholter puts it:
"The ability to scale quickly through interim staffing is also a great way firms can stay competitive when bidding on data center projects outside of the common geographic areas they do business within".
With global data center expansion expected to hit $3 trillion over the next five years, the demand for specialized recruitment solutions has never been clearer.
Building data centers is no small feat - it’s a job that calls for leaders who combine technical know-how with strong management skills. Brent Arnholter from Actalent describes these projects as "high-tech puzzles", requiring precision at every step. Successfully delivering these facilities hinges on coordinating multidisciplinary teams across MEP systems, project management, and commissioning processes. With uptime being non-negotiable, minimizing human error through meticulous organization and attention to detail becomes absolutely critical.
Despite the growing demand for data center construction, the industry is grappling with a recruitment trends and talent shortages. In fact, half of operators report difficulties in finding qualified professionals. This talent gap poses real challenges, especially in emerging markets like Virginia, Texas, and Georgia, where local expertise is limited. For firms scaling into these regions, the shortage creates risks that could delay projects or compromise quality.
To tackle this, bridging the talent gap is essential. Specialized recruiters play a key role here. Firms like iRecruit.co focus solely on mission-critical construction roles, maintaining networks of pre-vetted candidates with hands-on experience in power-intensive projects. They provide bid-ready resumes that showcase immediate project readiness, giving companies an edge when competing for contracts in new locations. Additionally, they can deploy travel-ready consultants in just days or weeks, ensuring tight deadlines are met without compromising quality.
With energy demands projected to hit 720 terawatt-hours by 2030, the need for skilled construction managers is only going to grow. Success in this field will hinge on the ability to balance technical expertise, leadership, and flawless execution to deliver these mission-critical facilities on time and within budget.
MEP systems - mechanical, electrical, and plumbing - are the backbone of data center construction, ensuring the infrastructure can handle the demands of high-performance operations. These systems manage critical functions like power distribution, cooling, and water flow, all of which are essential to keeping operations running smoothly and avoiding costly equipment failures.
Because data centers require such a high level of precision and complexity, it's crucial to have skilled experts who can design, install, and maintain these systems. Their work directly impacts the reliability and efficiency of the facility. By prioritizing MEP systems, data centers can meet the rigorous demands of modern operations, including energy efficiency and uninterrupted performance.
Data center construction managers are tackling talent shortages head-on by implementing strategies that address both immediate challenges and future workforce needs. A standout solution is prioritizing focused training programs. These programs are designed to enhance the skills of current employees while equipping new hires with the expertise required for the industry's unique demands. This approach not only fills skill gaps but also creates a consistent flow of qualified professionals.
Many companies are also speeding up their hiring processes to bring in pre-qualified candidates for key roles like project managers, cost estimators, and technical specialists. Beyond that, fostering partnerships with educational institutions and building strong industry networks has proven essential for developing a steady talent pipeline. Together, these efforts help ensure construction projects stay on schedule, even in a tight labor market.
Commissioning plays a crucial role in building data centers, as it guarantees that every system and piece of equipment is thoroughly tested, functioning properly, and ready to support essential operations right from the start. This meticulous process helps prevent unexpected problems, costly downtime, or system breakdowns once the facility is up and running.
By ensuring all components align with design specifications and meet performance standards, commissioning not only reduces risks but also ensures the data center is ready to meet the rigorous demands of today’s business environments.
