The Evolving Complexity of Data Centers has Driven an Increased Need for Project Management

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Historically, data center construction was relatively straightforward. The buildings were less complex, and size requirements were manageable. That has changed dramatically. Today’s data center projects are massive undertakings involving significant technical complexity, substantial financial and execution risks, supply chain constraints, and numerous other challenges.

Two of the primary challenges involve electrical capacity and water requirements for cooling systems. The power demand of modern data centers is often equal to or greater than that of the town in which they are constructed. In many cases, the local electrical grid cannot support this level of demand, forcing developers to consider building dedicated power generation sources, which further increases project complexity.

Water requirements present a similar challenge. Modern data centers require substantial cooling capacity, which involves sourcing water, utilizing it efficiently within advanced cooling systems, and properly treating it before returning it to its natural source. Each of these steps adds another layer of technical and operational complexity to the project.

These examples illustrate the type of large-scale initiatives that require world-class project management, project controls, collaborative contracting strategies, and disciplined construction management. A strong owner-side project team is essential in these mega-project environments to effectively manage interfaces, mitigate risks, and ensure alignment with the owner’s business objectives.