How An Industrial Design-Build Firm Overcomes The Unique Challenges Of Data Center Construction

In the digital arms race that began with personal computing and continues on the battlefront of artificial intelligence, tech titans rise and fall on the creativity of their software and the integrity of the data centers that deliver products and services to end users. 

That is why data center demand seems to be one of the only constants in the modern commercial real estate market, and with the growing call for AI tools, demand is only expected to rise. McKinsey & Co. estimates that by 2030, companies will invest almost $7T in capital expenditures on data center infrastructure globally, with more than 40% of this spending happening in the U.S. alone. 

Developers and end users count on experienced construction partners they can trust to bring these facilities to life — general contractors well versed in the unique complexities of building data centers, including site acquisition and security, power supply, and complex mechanical, engineering and plumbing considerations. 

FCL Builders got its start in the data center world in the early 2000s, working on large-scale projects for Equinix and Microsoft. When the market slowed in 2008, the firm kept up its momentum with warehouse, distribution, manufacturing and cold storage facilities.

When data demand began to soar in the 2020s, FCL had the experience needed to jump right back in. By then, the Chicago-based company had expanded into some of the most robust data center regions in the country, from the Midwest outward to the Sun Belt and East and West coasts. National expansion supported by 11 offices enabled FCL to turn data centers into one of its core products. 

“FCL has more than 50 years of experience in the construction industry,” Senior Vice President of Strategy Jeff Bonfoey said. “We've leveraged expertise in other asset classes, particularly large-scale industrial, to our advantage in building data center core and shells.”

The success of these spaces can hinge on a builder’s competency with site selection, advanced climate control systems, unique fire suppression systems and significant power supply and redundancy. These variables align to provide operational efficiency and zero downtime. Experienced GCs understand how to coordinate core electrical, plumbing and HVAC components with highly specialized racks and chip cooling technology to drive the performance of modern data centers.

Vice President of Project Development Chris Moore said site selection has become particularly complex for data center operators, whose ideal municipal partners have access to power and appropriate zoning regulations to allow a project to move forward. Some of the more traditional locations for data centers have become overwhelmed with the demand, driving newer projects to more remote locations, adding the challenge of finding skilled labor to take on the complexities of data center construction and operation.

While some of the top names in the industry have perfected their requirements and ability to source their projects, huge demand for these facilities has inspired some developers with less data center experience to enter the market or dramatically expand their presence in it. Moore said an experienced GC partner like FCL can help customers navigate potential issues, contributing valued counsel from early sketches through project completion.

Moore said that while a traditional industrial facility may just need the basics — 3,000 amps of power, air changes, heat and lights — data centers require megawatts or even gigawatts of power, a unique configuration of electrical systems, generators and highly specific cooling equipment. 

“When I discuss this with more traditional developers, they often say, ‘Those components can just fall into tenant improvements after we build the shell,’” Moore said. “But if you’re waiting until shell completion, it could be too late or costly to revamp.” 

Bonfoey said that in the race to build more data centers more quickly, some firms assume that every project is the same. While there may be similarities between sites, old infrastructure has unique requirements.

“We look at every project independently and try to solve specific issues that exist on that particular site,” he said. 

Bonfoey said it is important that people hiring contractors to build data centers appreciate the value the team brings to the project, rather than focusing solely on the cost of the job. A project’s overall return on investment begins with a competitive construction estimate, but the actual return is based on completing the project on time, hitting all quality and compliance milestones, eliminating safety incidents and delivering a high-performance product that is built to last and operate efficiently.

Swapping out a seemingly inconsequential building material for a cheaper one might bring the project in under budget, but poor product performance down the line might result in costly repairs, higher operating costs or a shorter facility lifespan. These facilities also have greater expectations for uptime, and the cost of the facility construction is often a fraction of the cost of processors going into the building or the revenue generated by the data center.

Moore said that while data center projects may take time, the day-to-day exchange of information among project stakeholders happens so fast it is almost as though they are in the middle of a “sprinting marathon.” This is why proper preplanning, on-site planning, including building information modeling with cloud-based, integrated data management, and 3D modeling and collaborative project execution need to take place as early as possible, even in the preconstruction phase. 

Bonfoey added that it is equally important for the relationship between the data center contractor and owner to be a true partnership to ensure smooth communication and success. 

“They are hiring us as professionals to perform oversight on the execution of the project, playing a mission-critical role alongside architects, engineers and all other prime stakeholders,” he said. 

FCL recently wrapped up a project in Ohio that initially had permitting challenges. Project leaders worked alongside other stakeholders as a team, through design calls, preconstruction and beyond, identifying adjustments that could be made to allow the project to be successful in the face of these hurdles. Despite four months of preconstruction delays, FCL worked with the owner and subcontractors to meet the original schedule.

This outcome was why the client hired FCL, Bonfoey said. 

“We were selected as the partner for that facility based on our past success with them, combined with the level of commitment FCL has given to all of its projects, including data centers,” Bonfoey said.

“Each new challenge that arose presented an opportunity for us to pull our best minds together, think creatively and solve a problem that other data center developers and operators will likely face down the line. As the digital arms race speeds up, our mission is to deliver the engines that our customers need to finish first.” 

This article was produced in collaboration between FCL Builders 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.