Data Center Construction: Costs, Timeline, and Delivery Steps

Data center construction means building a secure space for servers, power systems, cooling, and network gear. It’s a capital project with high stakes, tight specs, and zero room for delays.

This guide walks you through what makes these builds unique, what they cost, how long they take, and how to keep your team on track. We'll cover real-world issues, such as permitting, long-lead items, testing, and handover, without using technical jargon.

What is Data Center Construction?

Data center construction delivers purpose-built facilities that support large-scale IT infrastructure. These capital project buildings are engineered from the ground up for uptime, resilience, and performance.

If you’re planning a data center build, here’s what’s in scope:

• Power systems with utility feeds, switchgear, generators, and battery backups.
• Cooling infrastructure that includes Computer Room Air Handlers (CRAHs), chillers, containment, and airflow control.
• Fire protection is designed around sensitive electronics, not sprinkler heads.
• Security layers with physical access controls, fencing, and surveillance.
• Redundant systems across every service line to eliminate single points of failure.

Some owners are starting to combine IT and construction into a single contract. That move helps teams avoid last-minute surprises during commissioning and keeps everyone accountable to the same go-live date.

What Types of Data Centers Can You Build?

You can build four common types of data centers depending on power requirements, site conditions, and user needs. Here are the main types of data centers you can build, each with unique design and delivery needs:

1. Hyperscale Data Centers

These are massive facilities that support cloud platforms, AI systems, and heavy computing loads. Most projects span multiple buildings, requiring significant utility coordination.

Key traits of hyper scale builds include:

• Load range: 20 to 100+ megawatts.
• Typical clients: Tech giants like AWS, Microsoft, and Google.
• Key features: Private substations, custom cooling, and long-term growth capacity.
• Delivery needs: Staged programs, early utility engagement, multi-phase turnover.

2. Colocation Data Centers

Colos are shared buildings where tenants lease racks or suites for their IT. You build the core capital infrastructure and deliver space that meets strict uptime and access rules.

Core characteristics for colocation builds include:

• Load range: 1 to 20 megawatts.
• Typical clients: SaaS providers, telcos, global enterprises.
• Key features: Isolated white space, shared plant rooms, SLA-driven performance.
• Delivery needs: Flexible layouts, tenant-ready fit-outs, redundant systems.

3. Enterprise Data Centers

These facilities serve one organization with specific internal policies and risk thresholds. Construction often requires tailored solutions for compliance, security, and capacity.

Enterprise builds typically include:

• Load range: 0.5 to 10 megawatts.
• Typical clients: Banks, government agencies, healthcare networks.
• Key features: Custom layouts, secure rooms, private support spaces.
• Delivery needs: Close coordination with in-house IT and legal teams.

4. Edge Data Centers

Edge builds bring compute power closer to users and devices. These sites are fast, compact, and built for speed-to-market.

Most edge builds are defined by:

• Load range: 50 kilowatts to 1 megawatt.
• Typical clients: Telecoms, logistics firms, retail chains.
• Key features: Modular setups, local fiber access, small footprints.
• Delivery requirements: Fast installations, repeatable designs, and efficient commissioning.

Should You Build or Lease a Data Center?

Building a data center gives you full control over the infrastructure, layout, and long-term performance. Leasing one gets you online faster but locks you into someone else’s design, terms, and limitations.

Use this table to weigh construction impact, control, and program budget planning:

If your data center project demands tight uptime targets, data sovereignty, or future scalability, building usually pays off. Leasing might suit shorter-term workloads or early-stage expansions while you plan for a long-term build.

What are the Stages in the Data Center Construction Process?

Each phase of data center construction comes with distinct design, procurement, and risk and opportunity management demands. Here’s the full construction workflow for data centers, from early planning to final commissioning:

1. Planning and Feasibility

This stage confirms if the data center site, power, and business case are strong enough to proceed.

• Assess IT load projections, redundancy requirements, and future growth needs.
• Analyze site viability for grid access, utility infrastructure, and zoning approvals.
• Build financial models that balance capital expenditure (CAPEX) with total cost of ownership (TCO).

2. Design and Engineering Development

You translate operational goals into engineered blueprints and data center infrastructure layouts.

• Define rack layouts, cable paths, white space zones, and equipment rooms.
• Choose Tier classification (Tier II, III, IV) based on required uptime and fault tolerance.
• Run CFD models for airflow and simulate PUE (Power Usage Effectiveness).

3. Procurement and Long-Lead Equipment Strategy

You lock in the backbone systems that often delay data center construction projects if left too late.

• Pre-order backup generators, UPS systems, electrical panels, and chillers.
• Consider factory-built modules (e.g. power pods) to shorten install time.
• Secure pricing, delivery, and warranties through vendor agreements and framework contracts.

4. Civil Works and Shell Construction

This is when you break ground and raise the physical data center structure on site.

• Execute bulk earthworks, drainage, and slab pouring.
• Construct the shell using steel frame or tilt-up concrete panels.
• Waterproof and weather-seal the envelope, ready for internal trades.

5. MEP Installation and System Integration

You bring in the mechanical, electrical, and plumbing systems (MEP) that keep the data center facility online.

• Install power chains from utility feeds to PDUs at rack level.
• Fit chillers, CRAHs (Computer Room Air Handlers), and airflow containment systems.
• Configure BMS (Building Management System) for real-time monitoring and control.

6. Testing, Commissioning, and Final Handover

This is where every system is verified and the data center is prepped for occupancy.

• Run Level 1–5 commissioning across power, cooling, fire protection, and security.
• Simulate live load and fault scenarios to verify uptime performance.
• Finalize as-built documentation, O&M manuals, and train the client’s facilities team.

One of the most common mistakes in data center construction is delaying equipment orders. Fast-moving teams place procurement in construction milestones inside the design phase, not after it, which helps keep timelines tight and delivery smooth.

How Much Does It Cost to Build a Data Center?

Most data center construction projects fall between $600 and $1,100 per gross square foot or $8 million to $12 million per megawatt of IT load, depending on site conditions, utility access, and infrastructure requirements. Costs scale with design complexity and redundancy levels, especially for Tier III and Tier IV builds.

Here’s how the budget typically breaks down for a new greenfield data center:

Here’s the key drivers that shape final construction cost:

• Tier level: A Tier IV facility can cost 25% to 40% more than Tier III due to higher redundancy requirements.
• Power density: High-density loads need advanced HVAC systems and extra electrical infrastructure, driving up per-square-foot and per-megawatt spend.
• Site location: Grid strength, permitting lead times, and labor availability can increase total development time and labor cost by up to 30% in established markets like San Francisco.
• Supply chain volatility: Equipment like switchgear, chillers, and UPS systems now take 36–48 weeks to deliver, impacting budgets and schedules.

Markets such as Dallas and Reno offer more predictable construction costs, often 10–18% lower than Tier 1 cities. But they may come with trade-offs in fiber access or labor availability, which should be factored into your TCO analysis.

Sources: Dgtl Infra, Cushman & Wakefield Development Cost Guide 2024

Which Standards Certify Data Center Design and Build Quality?

Uptime Institute, ASHRAE, ISO, NFPA, IEC, and PCI DSS set the main standards for data center design and construction. These frameworks define how to build systems that meet strict requirements for uptime, energy efficiency, fire safety, electrical integrity, and physical security.

Each one supports a specific part of the infrastructure and reduces the risk of failure, downtime, or non-compliance.

Here are the key standards that apply to most data center builds:

Uptime Institute Tier Standards (I to IV)

Defines four levels of infrastructure resilience:

• Tier I: No redundancy; scheduled downtime expected
• Tier II: Partial redundancy for basic fault resistance
• Tier III: Systems stay live during maintenance (concurrent maintainability)
• Tier IV: Full fault tolerance; no downtime from any one failure

ASHRAE TC 9.9 Guidelines

Sets temperature and humidity ranges for safe IT operation. These limits shape HVAC design and help achieve ideal power usage effectiveness (PUE) without overcooling.

ISO 50001 (Energy Management)

Establishes methods for monitoring and improving energy performance. Used to reduce PUE over time with data-driven system adjustments.

NFPA 75 (Fire Protection for IT Equipment)

Covers fire risk in critical areas. It includes guidance on detection, suppression, and protecting IT equipment from smoke and heat.

IEC 60364 (Low-Voltage Electrical Installations)

Ensures safe installation and maintenance of electrical systems. It supports fault isolation and protects key gear like UPS, switchboards, and PDUs.

ISO 27001 and PCI DSS (Physical Security)

Outline how to manage and restrict physical access. Facilities must use badge controls, secure rooms, surveillance, and clear audit trails.

Different countries apply additional regional codes, but most enterprise, colocation, and hyperscale projects use these international benchmarks.

In some cases, clients demand dual compliance (Uptime Tier certification and ISO frameworks) to meet SLA requirements or support financial, healthcare, or government workloads.

These standards also influence decisions around redundancy, cooling tech, monitoring systems, and fire zones early in the design process.

Where to Build and How to Choose a Data Center Site

The best place to build a data center depends on five key factors: power availability, network access, climate conditions, government incentives, and land suitability. Site decisions affect project cost, uptime potential, delivery speed, and long-term scalability.

Choosing the wrong location can delay permits, limit capacity, or increase operating costs.

Here’s what to look for when selecting a data center site:

• Power capacity and grid stability: Sites need access to high-voltage lines or substations with capacity for future growth. Stable supply reduces risk of outages and supports Tier III or IV goals.
• Fiber and network access: Proximity to carrier hubs or fiber backbones lowers latency and improves connectivity. Redundant paths help meet SLA and failover needs.
• Climate and environmental risks: Cooler regions reduce cooling loads and improve PUE. Avoid floodplains, seismic zones, and fire-prone areas to protect uptime and structure.
• Incentives and local regulations: Government tax breaks, energy credits, and fast-track permits can lower capex. Understanding zoning laws and utility approvals speeds up the timeline.
• Land access and physical logistics: Look for flat, accessible land with space for backup systems, security perimeters, and future expansion. Nearby roads and transit help with delivery and staffing.

In high-demand regions, developers often evaluate dozens of sites before selecting one. Some project owners pre-negotiate power supply agreements or dark fiber routes before land purchase.

Others prioritize energy mix: choosing sites near renewables to meet ESG goals. Location affects not just the build, but long-term operational cost, resilience, and service performance.

Who Leads and Supports a Data Center Construction Project?

A data center project is led by the owner’s representative and supported by a team of specialists. Each role focuses on a specific part of the build: scope, schedule, design, safety, or system performance.

Clear responsibility prevents delays, cost overruns, and quality issues during construction. Here are the key roles involved in delivering a data center:

• Owner’s Representative: Acts on behalf of the owner. Manages scope, budget, risk, and design intent. Reviews performance and signs off on major decisions.
• Project Manager: Runs day-to-day activities. Coordinates trades, tracks progress, manages reports, and keeps the schedule on track.
• Design Consultants: Includes architects, structural engineers, MEP designers, and specialists in power, cooling, and security. They produce construction documents and review installations.
• Contractors and Subcontractors: Deliver the physical build. Includes civil, electrical, mechanical, fire, security, and BMS trades. Tier-rated builds often require teams experienced in critical infrastructure.
• Commissioning Agent: Provides third-party testing. Verifies systems meet Tier, ISO, or client-specific standards before handover. Leads the Level 1–5 commissioning process.

Larger projects often include other roles like cost managers, legal advisors, ICT engineers, or security consultants. The project structure depends on the delivery model: design-bid-build, design-build, or EPCM, and the owner’s internal capability.

A strong core team with clearly defined roles is essential for hitting deadlines, controlling risk, and achieving certification targets.

How Long Does Data Center Construction Take?

A full data center build typically takes 18 to 30 months from concept to commissioning. Timelines depend on project scale, site conditions, equipment lead times, and how early your team locks in key packages.

Here’s how the timeline for data center construction usually breaks down:

Some data construction projects expedite the process by overlapping design and procurement. That approach locks in long-lead items earlier and maintains steady momentum.

What Risks Derail a Data Center Build and How to Manage Them?

Data center builds face risks that can delay schedules and drive up costs. Knowing what’s coming helps you stay ahead and keep delivery smooth.

Here are the primary data center construction risks and how project teams can respond to each one:

Tie risk reviews to funding gates rather than just timeline checkpoints. It keeps decisions grounded in the real health of the project, not in hope.

Data Center Construction Trends in 2025 and Beyond

Data center construction is changing fast. New projects must support AI workloads, hit energy targets, and scale without delay. That’s pushing builders to adopt modular designs, better cooling, and smarter tools.

These trends are reshaping how hyperscale, colocation, and enterprise data centers get designed and delivered.

Here are the biggest trends shaping data center construction now:

• Liquid cooling for high-density AI infrastructure: GPU racks used in AI models like GPT and Claude need more cooling than air systems can handle. Liquid cooling improves thermal performance, reduces floor space, and keeps power use efficient under heavy loads.
• Modular and prefabricated builds: More developers are using factory-built power rooms, cooling units, and shells. These speed up construction, reduce site risk, and support repeatable delivery at scale.
• Renewable energy and battery storage integration: New sites often include solar, battery energy storage systems (BESS), or link to clean power through PPAs. These upgrades support ESG goals, lower emissions, and improve long-term energy resilience.
• AI-powered design and real-time monitoring: Tools now assist with layout planning, airflow modeling, and energy tracking. Post-build, AI helps spot faults early, predict failures, and reduce downtime.
• Sustainable materials and low-carbon construction methods: Projects now favor recycled steel, low-embodied carbon concrete, and smart finishes. These support certifications like LEED, BREEAM, or Green Star.

OpenAI, Meta, Anthropic, and Google are all driving demand for denser, more efficient data center infrastructure. To keep up, developers are shifting toward designs that deliver faster, run cleaner, and scale smarter across every region.

What are Examples of Successful Data Center Projects Worldwide?

Some of the most advanced data center projects today are being built to support AI infrastructure, large-scale cloud services, and regional digital expansion. These projects show how developers are combining speed, power, and sustainability at a massive scale.

Here are five of the most impactful data center builds around the world:

1. OpenAI & Oracle’s Stargate Data Center - Abilene, Texas, USA

This project marks one of the largest AI-focused infrastructure builds to date, targeting next-generation compute demands.

• Location: Abilene, Texas
• Power goal: 1.2 gigawatts of computing capacity
• Hardware: Up to 400,000 Nvidia GB200 AI chips
• Purpose: Support OpenAI's training needs through Oracle infrastructure
• Status: In planning, backed by a $500B long-term investment commitment

2. Meta AI Data Center - Temple, Texas, USA

Meta is redesigning its data centers from the ground up to support large AI models like Llama and other internal workloads.

• Location: Temple, Texas
• Goal: Scale to support 1.3 million GPUs by end of 2024
• Focus: Purpose-built for AI training and inference
• Energy: High-density design with advanced power and cooling systems
• Status: Actively under construction and part of a wider U.S. expansion

3. Amazon Web Services (AWS) Expansion - Ohio, USA

AWS continues to scale its U.S. presence with one of its largest regional investments, aimed at cloud and AI demand.

• Location: Multiple sites across Ohio
• Total investment: Over $23 billion by 2030
• New commitment: $10 billion added in 2024
• Job creation: 1,000+ new roles
• Focus: Regional cloud availability zones, AI infrastructure, and edge services

4. YTL Green Data Center Park - Johor, Malaysia

Malaysia’s largest green data center campus is setting the benchmark for renewable-powered hyperscale infrastructure in Southeast Asia.

• Location: Johor, Malaysia
• Power source: 500 MW on-site solar farm
• Partners: YTL Power, NVIDIA (supercomputing initiative)
• Focus: High-performance compute with integrated sustainability
• Status: Under development, positioned as Malaysia’s first AI-ready green campus

5. CoreWeave Supercomputing Facility - Plano, Texas, USA

One of the fastest-deployed AI-focused data centers, built to meet demand for GPU-intensive workloads.

• Location: Plano, Texas
• Investment: $1.6 billion
• Size: 450,000 square feet
• Hardware: Over 3,500 Nvidia H100 GPUs
• Focus: AI cloud services and real-time inference compute

Build Smarter, Deliver Data Centers With Confidence

Delivering a data center is high-stakes work, but it’s also a chance to lead critical infrastructure from the ground up. Every decision you make shapes how the facility performs long after the handover.

Utilize tools designed for data center delivery to maintain a tight scope, track risks, and keep costs under control. With the right systems, you’ll move faster, solve problems early, and build something that keeps the digital world running.