Contractors note that despite the recent increase in announcements about data center construction, the actual implementation of such projects is progressing much more slowly. According to Dodge Construction Network, the volume of planned data center construction in June decreased compared to the beginning of the year; however, this sector remains one of the main sources of contracts for the country’s largest construction firms. At the same time, zoning and permitting issues continue to play a crucial role for developers and contractors.

Main Challenges in Project Implementation

In one of Google’s data center projects, delays could lead to additional costs exceeding $5 million. Such delays are often caused by the need to comply with state environmental review requirements. These restrictions force construction companies to carefully select the projects they take on.

Criteria for Project Selection

Contractors are increasingly favoring clients who understand the complexities and challenges associated with building data centers. When choosing projects, the focus is not only on initial costs but also on safety, quality, and the overall concept of the facility. Special attention is given to sustainability, innovative solutions, and the energy efficiency of future infrastructure.

Construction Timeline Features

There is a common misconception that data centers can be built as quickly as the software they are designed to support. In reality, construction timelines are determined by physical constraints such as the availability of electricity, procurement and assembly of specialized equipment, which can take years given the state of global supply chains. Timely project completion requires strategic planning and phased execution.

The Importance of Site Selection

Choosing a site for a data center is one of the most critical decisions, as it affects the timeline, budget, and viability of the project. Success depends on reliable access to large amounts of electricity, which requires long-term relationships with energy providers. The ideal site should also allow for future expansion, have an effective cooling strategy, and offer a favorable regulatory environment to simplify permitting. Another important factor is the site’s attractiveness to construction specialists, including ease of access and the availability of necessary infrastructure.

Main Causes of Delays

Delays are most often related to zoning challenges, permitting requirements, and compliance with environmental regulations. Obtaining all necessary approvals can take considerable time, and changes in industry standards and regulations add further complexity. Even with an experienced procurement team, difficulties may arise with the availability of electrical and mechanical equipment with long lead times, as well as with securing specialists to commission and test equipment on site.

Current Trends in Data Center Construction

The number of data center construction projects in the planning or implementation stage exceeds the capacity of equipment and materials supply chains. This puts additional pressure on commissioning and testing processes at the final stages of each project.

The industry is shifting toward a broader focus on sustainability, including the adoption of modern liquid cooling systems instead of traditional air cooling. New facilities are being designed to minimize water consumption and increase efficiency. There is also a noted increase in power density in data halls due to higher energy demands and the miniaturization of new chips. Currently, it is the electrical and mechanical equipment that determines the size of buildings, not the area of the data halls. This increases the need for careful safety planning and risk analysis before starting electrification work.