How Augmented Reality Technology Can Be The 'Golden Thread' Linking Design And Construction

Hyperscalers are projected to make up two-thirds of total data center capacity over the next five years. This is a big surge from the near 50% they make up today. 

Data centers are being built at a record pace to accommodate demand driven by artificial intelligence, requiring more power, land and capital than ever before. As a result, hyperscalers’ needs and expectations are shifting. 

“The whole sector is a speed game, and the first to the finish wins,” said Anthony Canipa, vice president of customer success at XYZ Reality, a UK-based construction technology company. “There’s a lot of potential associated with being able to monetize quickly and efficiently.”

Data centers take an average of 18 to 36 months to construct, but stringent permitting, approval and energy procurement processes can stretch this timeline to three to six years. In 2026 alone, it’s estimated that about 50% of data center projects may face delays or, in extreme cases, cancellations. 

That’s why it’s imperative for the construction process to go as smoothly as possible. 

“These projects often get delayed or delivered over budget," Canipa said. “A one-off win is usually when you forecast a finish date and achieve delivery close to that date. That's a real challenge in construction nowadays.” 

The industry is realizing that it must shift from one-off wins to a truly efficient delivery system. This takes thoughtful oversight, planning and technological innovation throughout the entire process.

“A true delivery system means being able to estimate with a degree of precision from the offset that you're going to deliver to a timescale, or even better, run analytics or possibly some simulations that start to give you various scenarios,” Canipa said. “XYZ is a bit like navigation in your car: We’re not the drivers, but we can give you all the best routes to get there.”

XYZ's construction intelligence and augmented reality capabilities help to identify risks early on and improve build-phase certainty, Canipa said. Traditionally, contractors build data centers based off 2D drawings — as with almost every building within the commercial and residential sectors. These drawings can often leave room for error and potentially lead to costly schedule setbacks. 

With XYZ’s AR capabilities, contractors build based on real-time 3D holograms. XYZ validates every installation against design tolerances in real time, using Engineering Grade AR at the point of work. This helps to map out any inefficiencies or mistakes along the way before they occur. 

“At the scale these builders operate, it's natural that things are going to be installed incorrectly,” Canipa said. “The pace they're working at, the number of individuals trying to collaborate across different spaces — especially across different trade groups — is immense. Sometimes, communication between the parties could be improved.”

XYZ’s intelligence detects quality issues in real time. Incorrect mechanics or HVAC installations are flagged automatically, not after they’ve buried themselves in the schedule. Having access to that information allows teams to address issues as they arise. Canipa said the teams that don’t have this level of real-time visibility have no choice but to wait until they get to Level 3 commissioning to remedy those issues — or even later.

The end result? Having to stop progress and rectify the issue at one of the most critical stages of construction.

“What we’ve found is that teams that identify the issues and remedy them as quickly as possible see measurable savings in terms of time and cost,” he said. “We’ve seen teams close out quality issues within a month of them being found, and subsequently entering into Level 3 commissioning with a clean quality record. This allows them to move very quickly and lets them feel more confident in their work.”

Having conducted its services on dozens of hyperscale projects, Canipa said XYZ’s live field data has proven to streamline communication and improve project efficiency. Since its inception 10 years ago, the firm estimates it has saved clients $135M in rework costs and saved 15,000 critical construction days across its portfolio. 

XYZ has discovered that there’s approximately a seven-week lag between when a problem during the construction process occurs and when it is found and resolved. Using live data, which is picked up on campus on a daily basis, allows everyone to be on the same page — whether they’re on-site or in the office.

Additionally, Canipa said hyperscale projects can have hundreds, if not thousands, of workers on-site at any given time who are expected to communicate and work together seamlessly. In most other contexts, no one would expect that many people to come together and suddenly be synchronized with a deliverable. Yet in construction, many tend to believe that that can be true, he said. 

“XYZ is one of those products that tries to be the golden thread that can start to link these functions together and help with the communication flows but, more importantly, give a feedback loop to them as well,” he said. “We can take site data and access it from anywhere. This gives all parties ultimate transparency.”

Canipa noted that hyperscale developments are increasingly turning to modular fabrication to achieve maximum efficiency and quality. With its platform’s ability to be accessed anywhere, users can even check the modular equipment at the manufacturing facility — measuring it against the construction site before any materials are moved there.

“When manufacturing and construction processes are brought together, there's a higher degree of confidence that everything will be aligned and can be installed in the quickest and most efficient means possible,” he said. “We’ve made constructing these facilities an iterative process rather than a one-off, and that's our goal. What we do for one project, we can take to the next.” 

Canipa said he expects that data centers, particularly hyperscale facilities, will move to a more manufacturing-focused model. Not only is it safer for on-site teams, but the quality of product and installation increases — all while usually coming in at a lower price. 

He said XYZ has positioned itself in a way to complement this process, bringing what’s going on on-site to the fabrication environment and vice versa.

“We can't be building one-off data centers in far-reaching locations every time,” he said. “We have to find a model and create an ecosystem that allows data centers to grow in the most efficient way.”

This article was produced in collaboration between XYZ Reality and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.