Data center construction is one of the most unique and complex segments of the construction industry. Each project requires seamless coordination, from navigating stringent compliance regulations to managing diverse workforces and subcontractors. As the demand for data centers continues to rise—driven by the growth of cloud computing, AI, and IoT—successfully overcoming these challenges has never been more critical. Failure to do so can lead to costly delays, safety risks, and regulatory penalties.
This blog article explores some of the top challenges in data center construction and offers insights into best practices and effective solutions to ensure your project stays on track, secure, and compliant.
Key Data Center Construction Challenges and Their Impact
1. Stringent Compliance and Risk Management
Data centers house sensitive information and critical infrastructure, making compliance with local, national, and industry-specific regulations essential.
Outcomes if challenges are not addressed:
- Costly delays and budget overruns
- Legal disputes and penalties
- Reputational damage and loss of future contracts
Key considerations include:
- Adhering to local building codes and zoning laws
- Meeting environmental standards for energy efficiency and sustainability
- Following data security protocols to protect sensitive information
2. Complex Workforce Management
Managing a diverse workforce on data center projects is challenging due to the need for specialized skills and certifications. Poor workforce coordination can lead to inefficiencies, delays, and increased costs.
Outcomes if challenges are not addressed:
- Inefficient workforce allocation leads to missed deadlines
- Increased labor costs due to poor scheduling
- Safety risks from unverified or unqualified personnel
Key considerations include:
- Coordinating multiple subcontractors and specialized teams
- Tracking worker attendance and credentials in real-time
- Ensuring labor compliance with safety and certification standards
3. High-Standard Standard Site Security Requirements
Data centers demand robust physical security during construction to prevent unauthorized access and potential breaches.
Outcomes if challenges are not addressed:
- Unauthorized access, risking theft and data breaches
- Project disruptions from safety violations
- Compliance failures impacting operational approvals
Key considerations include:
- Implementing advanced access control systems
- Preventing theft, vandalism, or damage to infrastructure
- Meeting security standards required for sensitive data storage facilities
4. Safety and Incident Management
Safety risks are heightened in data center construction due to heavy equipment, electrical installations, and confined spaces. Proper safety management is essential to prevent accidents and project delays.
Outcomes if challenges are not addressed:
- Higher accident rates and worker injury claims
- Regulatory fines and shutdowns
- Diminished project timelines and productivity
Key considerations include:
- Conducting regular toolbox talks and safety briefings
- Performing routine safety inspections and checklist verifications
- Ensuring real-time incident reporting and management
5. Tight Schedules and Cost Controls
Speed to market is critical in data center construction, but aggressive timelines increase risks of errors and cost overruns.‘
Outcomes if challenges are not addressed
- Budgets spiral due to inefficient processes
- Delays impact speed-to-market, affecting ROI
- Stakeholder dissatisfaction reduces your competitive advantage
Key considerations include:
- Coordinating schedules across multiple stakeholders
- Managing budgets and controlling project costs
- Implementing strategies to avoid delays and ensure on-time delivery
How BiltOn Can Help Solve These Data Center Construction Challenges
BiltOn’s Construction Operations & Risk Management Software delivers targeted solutions that address these challenges and drive successful project outcomes:
- Seamless Workforce & Labor Management: Automated headcount tracking, time & attendance monitoring, and credential verification ensure workforce efficiency and compliance.
- Advanced Access Control with 3D Facial Recognition: access control technology prevents unauthorized entry and minimizes operational risks.
- Proactive Safety Management: Integrated toolbox talks, safety checklists, and real-time incident reporting support a safety-first culture and minimize project disruptions.
- Robust Risk & Compliance Oversight: Automated management of Certificates of Insurance (COI), diversity reporting, and regulatory compliance documentation reduces legal risks and ensures on-time approvals.
By streamlining operations, strengthening security, and ensuring full compliance, BiltOn empowers General Contractors and Owners to complete data center construction projects efficiently, securely, and on schedule—ultimately safeguarding profitability, enhancing reputations, and unlocking future growth opportunities.
See how we can help you overcome data center construction challenges and achieve operational success.
