Managing Data Center Construction Projects

A 2025 Project Controls Guide

Imagine yourself as the project manager standing at the helm of a $200 million data center construction project. You’re juggling demands for faster delivery timelines with unprecedented technical complexity. Since AI infrastructure requirements change almost weekly, you’re building today, for future infrastructure demands that aren’t as easy to predict as other capital projects. This is the reality of data center construction. The numbers tell a compelling story: development costs range from $9.3M to $15M per megawatt of critical load. Every decision impacts millions, every delay ripples through the schedule, and every risk must be meticulously managed.

At Dokainish, we use a sophisticated project service model that optimizes the interplay between people, process, systems, and data. It is true that data center projects will benefit greatly from fit-for-purpose project controls, real-time risk management, and innovative delivery methods. Data centers also need a centralized design once, build many (DOBM) approach to scale.

Consider these staggering figures:

Annual bandwidth demand growing 19-22% through 2030.
Capacity requirements soaring from 60 GW to 298 GW by 2030
AI workloads projected to represent 70% of total demand
Average project cost: $11.7M per MW of critical load

Data center construction requires precision and efficiency, and a robust project management framework is essential. Our project framework encompasses meticulous schedule management, stringent cost control, and proactive risk mitigation, ensures that projects are delivered on time, within budget, and to the highest quality standards.

1. Schedule Management

From the initial groundbreaking to the final commissioning, every stage of data center construction demands meticulous schedule management. The critical path, spanning site preparation, shell construction, MEP installation, and commissioning can unfold over months or years. To maintain this timeline, modern project managers leverage sophisticated tools and approaches:

Weekly progress tracking using earned value metrics provides insights into project performance, allowing for timely adjustments and course correction.
Resource-loaded schedules facilitate seamless trade coordination, ensuring that the right resources are available at the right time.
Look-ahead planning with a 6-week rolling window enables proactive identification and mitigation of potential bottlenecks.
Milestone tracking with buffer management provides a clear roadmap for project progress, while incorporating flexibility to accommodate unforeseen challenges.
Integration of supply chain lead times (12-18 months for critical equipment) ensures timely procurement and avoids costly delays.

2. Cost Management: The Art and Science of Financial Precision

Based on our experience in capital projects across numerous industries, project costs for data centers can soar. Effective cost management is paramount. Understanding the intricacies of cost allocation is crucial:

Site development typically accounts for 15-20% of the total project cost.
Shell and core construction consumes 25-30%.
MEP systems, the heart of a data center, command the largest share, at 40-45%.
Project management and design comprise 10-15%.

To maintain financial control, project managers employ a suite of robust cost control systems:

Monthly earned value reporting provides a comprehensive overview of project financial performance.
An organizational change management process with executive approval thresholds ensures that any changes to the project scope are carefully evaluated and authorized.
Cost forecasting, updated weekly, provides dynamic insights into future cost projections, enabling proactive cost optimization.
Contingency management, encompassing design contingency (10-15%), construction contingency (5-8%), and owner’s contingency (3-5%), provides a financial buffer to absorb unforeseen costs.

3. Risk Management: Navigating Uncertainty

There are several key features and capabilities in a rigorous risk management framework. Data center projects will benefit from the following

Risk Identification: Identifying potential risks early on, through comprehensive risk assessments and stakeholder engagement, allows for timely mitigation planning.
Risk Assessment and Prioritization: Evaluating the likelihood and impact of each risk allows project managers to prioritize their mitigation efforts.
Risk Mitigation Planning: Developing detailed mitigation plans for high-priority risks ensures that the project team is prepared to respond effectively to challenges.
Risk Monitoring and Control: Continuous monitoring of risks throughout the project lifecycle allows for timely adjustments to mitigation strategies and ensures that risks remain under control.

At Dokainish, we understand the complexities of construction management. Our integrated approach, combining deep industry expertise with cutting-edge technology, empowers our clients to navigate the challenges and achieve project excellence. We provide comprehensive support in schedule management, cost control, risk management, and more, ensuring that your data center project is delivered on time, within budget, and to the highest standards. To learn more about our integrated approach that reduces costs and complexity, please contact us.

About Dokainish & Company

The capital project landscape is impacted with billions of dollars lost from cost overruns. Dokainish & Company stands out with a track record of building award-winning PMOs and lowering cost overages up to 200% on projects in energy, infrastructure, mining, construction, defense, and more. We are the category leaders in project controls and technology consulting. We are ISO 9001:2015 certified, minority owned, and maintain a 97% rate of client retention. We provide integrated project controls, project management, and change management services. Learn more at dokainish.com and follow @Dokainish&Company.