The Data Center Boom Will Push Construction Into the Digital Age

Analyst Insight: The demand for compute power is rapidly outpacing supply, prompting tech giants to invest billions in artificial intelligence-powered infrastructure. The growth of the high-tech ecosystem now depends on construction, an industry that is progressively adopting technology. To meet the speed and scale required for this data center boom, builders must modernize their systems and processes. 

Data center projects amplify nearly every construction challenge, from building speed and coordination, to regulations and community impact. Tech companies need the power supply as soon as possible, and with so much money invested, even minor construction delays mean millions in lost revenue. These buildings also require more energy, water and regulatory approvals than typical projects. A data center’s size and resulting infrastructure stress create public pushback. 

Construction companies relying on spreadsheets and siloed systems aren’t equipped to overcome these challenges, especially when managing multiple data center projects. The successful completion of the new wave of power infrastructure will require a risk-averse industry to digitize. 

To meet this moment, construction firms must invest in digital capital portfolio management. Most teams manage a network of simultaneous builds; integrated electronic systems allow managers to see project interdependencies, including materials, permitting timelines, and supply logistics. With this visibility, managers can optimize resource allocation, track budgets, and identify potential conflicts and risks in real time. 

Manual workflows often break at handoff points because each team uses separate systems. An integrated project management platform creates a single source of truth, so everyone is on the same page. Cloud-based systems ensure that every change is reflected in real time. This capability is especially pertinent in data center construction, as power and cooling specifications constantly evolve. The alignment prevents rework, reduces delays, and mitigates risk while also creating an audit trail. 

Data centers receive intense scrutiny from regulators and the public. Project managers must be ready to provide documentation and answer questions. Siloed systems and spreadsheets make accurate reporting very difficult. With digital tools, construction teams can track and report compliance. 

Construction leaders can also use this data to build goodwill with the community. In a PMWEB consumer survey, one-third of respondents said clear timelines and milestone updates would increase their trust in construction management. Residents also wanted completion dates, transparency about delays, and schedules for disruptive activities. Digital capital portfolio management provides project leaders with the information needed to answer those requests, which can help reduce community resistance to projects. 

Of course, construction companies must be cautious when implementing tech. We’re still in somewhat of a Wild West with AI. Many are not ready to make decisions that affect people’s safety or to shape a multi-million-dollar project.  AI’s best use for construction sites is decision support — identifying issues and suggesting solutions. A human must actually make the decision. 

Outlook: The future of AI runs through construction sites, and the industry must evolve alongside the technologies it enables. By the end of the decade, construction firms serving the data center market will resemble their clients: digital, integrated and data-driven.

This article was originally published on Supply Chain Brain.