Data Center Construction: Building the Cloud

As the demand for digital data increases, so does the demand for the physical structures and equipment needed to store and process data. Data centers are facilities that house computer systems that store, process and direct data used in every part of our digital lives.

Data centers have a lot of specific needs, and meeting these needs starts with construction, either by building new data centers or expanding existing ones. This article explores the construction of data centers, common challenges, best practices and the phases of the process.

The Basics of Data Center Construction

Data centers are usually exclusively devoted to housing the hardware needed for storing and processing digital information. The demand for data center capacity has been steadily growing for years and is expected to grow around 10% every year until 2030.

The aesthetic considerations for the interior of a data center are usually minimal — and the exterior is usually intentionally nondescript to avoid drawing attention to the building. This makes the process of building the facility relatively predictable, as each center must have: 

• IT hardware, including servers, cables, routers and modems
• Storage for hardware, specifically racks and cabinets. Racks are open metal frames that hold servers and cabinets are enclosed, secured frames that hold servers. 
• Industrial systems and equipment, including mechanical, electrical, and plumbing (MEP), cooling, fire suppression and backup generators

The real challenge — and perhaps the most important part of data center construction —  is finding suitable sites and ensuring they can meet the facility’s specific needs, particularly in regard to space and energy. 

Some data centers are built in reconstructed factories or warehouses. New data centers are often built in the areas around large cities, where they can find enough open space but can connect to an expansive, established electrical grid. 

Many owners and general contractors (GCs) have extensive due diligence checklists that they use to assess a potential site and determine whether it meets a data center’s minimum requirements. Here are a few key considerations during site evaluation and design.

Energy

Servers require extraordinary amounts of electrical power and must be kept at specific temperatures at all times. A site must have access to a power grid that can keep the servers running and the cooling systems working around the clock.

Size

Data centers are huge, and, with the increased demand, are only getting larger. New and reconstructed sites must be able to meet the demands for data center capacity, which is usually measured in three ways:

• Racks: the number of racks conveys the amount of space available for servers 
• Square footage: Many new facilities are now larger than 250,000 square feet
• Power capacity in megawatts: Many new facilities have a power capacity between 80 to several hundred megawatts

Reliability

Like the internet itself, data centers need to be on at all times, with no exceptions. Beyond having enough power, most data centers have extensive backup systems that can keep servers and cooling systems functioning, even when local power goes out. This often includes power generators or uninterruptible power supplies, which provide automated backup when the main power source goes down.

The Data Center Construction Process

The construction of a data center follows the typical phases of construction, but has a few unique processes and considerations.

Planning

Much of the planning phase focuses on thoroughly analyzing potential sites to determine that they can meet the minimum requirements of hosting a data center.

Many GCs and owners have a due diligence checklist of minimum requirements needed for a site. These lists vary based on the owner’s needs. 

Once a site meets the minimum requirements for a data center, the design process tends to happen quickly. Designs and plans for data centers are often heavily replicated from site to site, accommodating any unique characteristics of the surrounding area. 

Many owners have designs they can deploy in different scenarios, such as a facility they plan to rent, a repurposed warehouse, or building on a site with the potential to expand in the future.

Preconstruction

Data center owners often open bids to GCs after their site has been vetted and secured and designs have been made. Owners usually open the bidding to only a very short list of contractors – often between three and five — who they know are specialized, experienced, and can be trusted to get the job done quickly and at a reasonable price. Once selected, GCs often consult heavily with the design team to revise the drawings based on constructability, value engineering and available materials.

Similarly, owners and GCs usually have a short list of trusted vendors and manufacturers, who can provide reliable materials and equipment and are able to give accurate estimates for procurement times. Given the specialized nature of the equipment, delays in procurement are common, have increased in the last few years and are a very real threat to the project finishing on time. 

Data centers are often built with quite a few redundancies because of the building’s extreme, around-the-clock energy needs. The facility should have secure access to electricity and water, as well as plans in case local utilities go down, which might include backup systems such as heavy-duty MEP generators, alternative forms of energy, and extra cooling systems.

Construction

GCs and the design team are often changing, updating and revising design drawings throughout the construction process, based on how the build is going, the availability of equipment, and material procurement. 

GCs are constantly assessing the cost impact and the schedule impact of alternative construction methods or materials, sending requests for information (RFIs), and submitting changes to the drawings and for new materials. GCs are always looking for ways to keep the project moving forward and avoid any delays, as a completed data center almost immediately begins to earn an immense amount of money for the owners. Delays can sometimes result in a GC having to pay liquidated damages.

Post-construction

Because of the specialized nature of data centers, commissioning reports are an extremely important element of closeout documentation. During commissioning, the newly installed system is tested to ensure its performance is at or above acceptable levels. 

In data centers, commissioning reports are prepared throughout construction and into post-construction to verify servers, MEP systems, cooling systems, and generators are installed correctly and functioning properly. Similarly, the closeout documents will need to include operation and maintenance manuals for each of the systems.

Roles and Responsibilities in Data Center Construction

Data center construction is often a repetitive process, but the people who work on these projects are usually very specialized.

Common Challenges in Data Center Construction

Below are some common issues faced during data center construction.

Numerous Stakeholders

Compared to other types of commercial construction, data centers have many more stakeholders. Many owners are multinational companies who need to coordinate their efforts across the globe. Locally, data centers rely on numerous utility companies and local municipalities. In many cases, data centers will rent out racks in their facilities to tech companies that have specific needs or preferences for the building’s design.

High Cost of Delays

Data centers make an immense amount of money from the second they open. GCs can be on the hook for extraordinarily high liquidated damages if they miss deadlines or the project is delayed. GCs are constantly looking for ways to speed up the build or keep it on track, possibly by adjusting the design, submitting RFIs, or putting in change orders when necessary.

Varying Standards & Regulations

Most owners are multinational corporations, but their data centers are built in places with their local regulations, processes, material procurement issues, and expectations. Data center owners often create their own standards for construction to ensure their facilities are completed with the utmost levels of quality and safety.

Best Practices in Data Center Construction

There are a few things that almost always improve the data center construction process. 

Create digital systems for document and project management.

Owners and their preferred GCs are often doing work that spans the globe, so they have come to rely on systems that standardize and streamline the ways they develop, store and share plans, designs, and schedules. These systems, like Procore, have sped up the construction process by organizing and centralizing progress reports, submittals, and invoicing.

Plan for redundancies.

Data centers make the internet work, so they can’t go offline – ever. Data centers should have elaborate and thorough backup systems that ensure – even in emergency situations – power will stay on, rooms will stay cool, and servers will keep working. 

The Sustainability of Data Centers

Most data centers’ massive demands for energy can come at a great cost to owners paying the electric bill, local energy providers working to meet demand, and to the environment. Data center construction will likely continue to be a fairly predictable process, but the ways data centers use and store energy is likely to change, as owners and designers are increasingly looking for energy options that are more efficient, affordable and sustainable. 

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