...

Data Center Construction: Contractors Must Step Up

Data Center Construction: Contractors Must Step Up


I attended the Datacenter Forum 2026 in Helsinki last week. Over 400 people packed the room. Walking out, I had one overriding thought: Is construction operating in a different century from the technology it is being asked to house?

Is our industry on par?

Ciarán Forde, Senior Vice President at CTS Nordics, opened the forum with a statement that set the tone for everything that followed: data centers are no longer just a technical challenge; they are a national strategy. Before AI, Ciarán had worked in telecoms, where data centers were already complex. But now, he said flatly, everything has changed, and the industry must rethink everything.

The numbers behind the claim are staggering. Current AI data center racks run at 40 to 100 kW. In three years, 800 kW per rack is on the roadmap. And the development cycle for a new chip is roughly one year, which means deployments begin aging out almost as soon as they are commissioned.

Data centers are no longer just construction projects with a tight schedule, but rather technology production systems with a construction component. Is the AEC sector on par with this development?

The machine sets the terms

In a conventional building project, the structure defines the brief. In a data center, the IT load defines everything else. Design starts with power distribution, cooling topology, and redundancy strategy. Architecture and structure follow. MEP systems can represent 70 percent or more of construction costs in demanding facilities.

The technology does not wait for the building industry to catch up. Paola Manteca of Schneider Electric described how they factory-preassemble pods and skids, integrated power, cooling, cabling, and containment, to cut on-site work and reduce errors. The white space, the customer-facing area housing servers and networking gear, can be integrated in days. The construction timeline is being compressed from the outside by companies whose primary business is not construction at all.

Speed is not a client preference; it is a financial imperative. Any delay in a data center project translates directly into lost revenue for the operator. That changes the contractor’s accountability in ways that most project contracts have not yet addressed.

Paola Manteca presentingPaola Manteca presenting
Paola Manteca at the Datacenter Forum (photo: Aarni Heiskanen)

Where contractors currently stand

Engineering firms that understand power density, thermal management, and digital workflows are becoming embedded partners in the data center process rather than project contributors. To keep up, contractors must also rethink their offering.

If they continue to approach data centers as construction projects with unusual specifications, they will be treated as execution vendors, brought in for the concrete and steel, and then left behind while the real integration work happens elsewhere. The prefabrication trend accelerates this risk.

As Schneider Electric’s model illustrates, system complexity is already moving off-site into controlled manufacturing environments. The on-site role shrinks unless the contractor has expanded their scope upstream.

What contractors actually have to offer

Contractors could have the means to prosper in this environment. Lean construction methods, supply chain discipline, and prefabrication logic are genuinely valuable in data center delivery; more valuable here than in almost any other building type, because the cost of variability is so high.

Sakari Jämsä, Skanska’s Director of Data Center and Industrial Construction in Finland, noted that despite demanding conditions, they have exceeded global industry benchmarks for productivity and reliability. That shows a rigorous process approach in an environment with no room for improvisation.

The question is whether contractors apply that discipline only to their slice of the site or bring it to the whole delivery system. The first option keeps them in the execution tier, and the second opens the door to a fundamentally different role.

Platforms beat sites

Finland has become a Nordic leader in attracting data center construction, as Charlie Enright demonstrated in DC Byte‘s market review. The story of Hyperco is a telling example of this development.

Aleksi Taipale, co-founder and CEO of Hyperco, built his company from zero data center knowledge in 2020 to delivering a facility for TikTok in Kouvola by 2024. The following year, Hyperco was acquired by Dubai-based Edgnex, a subsidiary of the DAMAC Group. Now, the company has six projects either under construction or in the permitting process.

Taipale’s framing of what made that possible was direct: platforms beat sites. And local high-quality execution is non-negotiable. The platform is the business model: repeatable systems, integrated supply chains, digital workflows that carry across projects rather than being rebuilt each time. A contractor who shows up with excellent site management but no platform thinking will remain a subcontractor to someone who has one.

As many construction professionals I talked with at the event stated, data center construction is the brightest spot in the economically challenged industry right now. The contractors who will matter in data center construction are those who are ready to rethink their role from site executor to system integrator. The window is open, but it will not stay open indefinitely.

PS. This was the first event I’ve attended where three stages were physically in the same open space, side by side, and three presentations ran simultaneously. The solution was to provide the audience with headphones tuned to the respective stage’s audio.

audienceaudience
The Datacenter Forum audience with headphones



Source link

Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.