According to DCD, their latest construction survey of 171 industry professionals reveals persistent challenges in data center construction that are pushing costs up and delaying operations throughout 2025. The comprehensive report identifies rework, documentation gaps, and uneven digital adoption as the primary culprits behind project failures and budget overruns. The research provides specific strategies to reduce overruns through strengthened coordination and planning, along with approaches to improve project outcomes via smarter commissioning and documentation practices. These findings come at a critical time when global data center construction faces unprecedented demand pressures.
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Table of Contents
The Multi-Billion Dollar Rework Epidemic
The construction industry has been grappling with rework costs for decades, but data center projects present unique challenges that amplify these issues. Unlike conventional buildings, data centers require precision engineering where even minor deviations can cascade into major operational failures. The cooling systems, power distribution, and rack layouts must align perfectly with IT equipment requirements, creating multiple failure points where coordination breakdowns occur. What makes this particularly problematic in 2025 is the sheer scale of current construction pipelines – with AI-driven demand creating unprecedented pressure on delivery timelines while simultaneously increasing technical complexity.
Why Digital Transformation Stalls at Construction Sites
The “uneven digital adoption” noted in the DCD report reflects a deeper industry divide between design capabilities and field execution. While architects and engineers increasingly work with sophisticated BIM (Building Information Modeling) systems, construction teams often revert to paper-based workflows or fragmented digital tools. This creates what I call the “digital handoff gap” – where perfect digital designs get lost in translation during actual construction. The problem isn’t technology availability but rather workforce training, contractual incentives, and cultural resistance to changing established workflows. Construction firms that have successfully bridged this gap typically invest in integrated BIM-to-field solutions that maintain digital continuity from design through commissioning.
The Commissioning Crisis Nobody Talks About
Commissioning has become the silent killer of data center projects, with many owners discovering critical flaws only during final testing phases. The traditional approach of “test at the end” creates massive rework costs when systems don’t integrate properly. What’s needed is a shift toward continuous commissioning – where verification happens throughout construction rather than as a final gate. This requires digital twins that simulate performance before physical construction and real-time monitoring during build-out. The industry is beginning to recognize that AI workloads demand different commissioning protocols than traditional enterprise applications, particularly around power density and cooling validation.
Construction Delays Threaten AI Infrastructure Rollout
These construction challenges have serious implications for the broader technology ecosystem. With cloud providers and enterprises racing to deploy AI infrastructure, every month of construction delay translates to delayed AI model training, slower application deployment, and competitive disadvantages. The $28 billion in rework costs identified across the industry represents not just wasted capital but lost opportunity cost in the AI arms race. Companies that solve these construction challenges will gain significant market advantages through faster time-to-market and lower capital expenditure. This creates opportunities for modular construction specialists and integrated design-build firms that can deliver predictable outcomes.
The Road to Smother Data Center Delivery
Fixing data center construction requires more than incremental improvements – it demands a fundamental rethinking of project delivery. The most successful organizations are moving toward integrated project delivery models where designers, contractors, and equipment suppliers share both risks and rewards. They’re implementing digital thread technologies that maintain information continuity from concept through operations. And they’re investing in specialized training for data center construction teams who understand both construction principles and IT infrastructure requirements. The companies that master this integrated approach will not only reduce rework costs but will position themselves as preferred partners in the era of AI-driven infrastructure expansion.
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