GCs Who Build Health Sciences Are Well Suited to Build Data Centers, Panelists Say

By KERRY SMITH BUCK

The pace of data center construction is in many ways akin to – or arguably even faster than – high-complexity health sciences construction, specifically because both are considered mission-critical projects.

That said, the current data center building boom, according to a panel of industry experts who spoke at AGC of America’s annual conference in March, is largely outpacing most other sectors due to AI-driven demand. Experts described the data center construction boom as having an “endlessly accelerating pace” that is changing construction techniques.

“Life sciences and healthcare construction experience provide great entry points into the data center (construction) space,” said Matt Raponi, senior manager of data center construction procurement for the Americas at Amazon Web Services. “GCs that already have a proven relationship of delivering highly complex, fast-paced projects with specialty mechanical and electrical contractors are the firms sought after by data center (project) owners.”

These centers are heavily leveraging prefabrication practices, manufacturing cooling skids and electrical raceways offsite, to meet more-than-expedited construction schedules and reduce the already-enormous labor onsite, often totaling thousands of workers. “They’re (centers) going up at a breakneck pace with no float in the schedule,” said Raponi.

Even if GCs are seeking to bid on constructing the core and shell for these mammoth developments, Raponi adds that they need to demonstrate proven, strategic, well-tested working relationships with specific electrical and mechanical specialty contractors that are already building data centers.

“For GCs, there needs to be a purposeful entry of a collaborative nature with MEP (mechanical, electrical and plumbing) specialists,” Raponi said, “because the AI servers that power data centers demand high-power density of 15 to 50 kilowatts per rack with specialized, high-capacity liquid cooling and electrical systems.”

Alex Vess, senior project management director of Turner & Townsend’s Atlantic Market Advisory, agrees that mission-critical and hyperscale data center developments are driven by savvy owners that are often orchestrating hundreds of these projects nationwide.

“Expect a great deal of cost scrutiny from owners,” said Vess. “Every change order, every cost…they’re going to be sitting in construction trailers right next to yours,” he told GCs in attendance at the AGC conference. “These hyperscalers display an administrative intensity that can be anticipated in mission-critical projects like these. You’ve got to have a project manager and superintendent who possess specialized skills in MEP and commissioning.”

Co-panelist Bryan Kelley, senior VP at Balfour Beatty Construction, said competitors will be “nipping at your heels to get into a data center campus.”

“Early engagement with your dedicated MEP specialist partners is essential,” Kelley said. “Data center developer-owners will demand this, helping the team identify design clashes via BIM (Building Information Modeling) before construction begins to prevent costly delays.”

Construction and commissioning of these data centers resemble that of power plant facilities, according to Raponi.

Where life sciences construction and data center construction differ, AGC panelists agreed, is that the former generally faces longer, more rigid planning and regulatory processes.

And unlike health sciences, which are often burdened by slower public funding cycles and strict, lengthy code compliance, data center developers are motivated by aggressive “time-to-revenue” goals, creating a “blue-collar gold rush” to build as fast as possible.

While both sectors have strong planning momentum, data center construction is currently dominating the construction starts metrics, according to the Bureau of Labor Statistics.