Datacenter Construction Industry Hub

The datacenter construction industry has undergone a dramatic transformation, with datacenters now representing 30-50% of revenue for major contractors and creating a $200B+ annual market. This hub analyzes how specialized contractors are building the physical infrastructure powering the AI revolution, the innovations enabling faster delivery, and the capacity constraints shaping the industry’s future.

Industry Transformation Overview

Market Scale & Growth

The datacenter construction market has exploded from a niche specialty to the dominant revenue driver for the nation’s largest contractors:

• $200B+ Annual Market: Total US datacenter construction spending
• 30-50% Revenue Concentration: Major contractors now derive 30-50% of revenue from datacenters
• **$10B+ Individual Projects**: Meta Louisiana represents largest single construction contract ($10B)
• 3-5 GW Pipelines: Leading contractors managing multi-gigawatt project portfolios
• 18-24 Month Timelines: Industry standard compressed from traditional 24-36 months
• 5,000+ Worker Peaks: Mega-projects like Meta Louisiana requiring unprecedented workforce scale

Revenue Transformation by Contractor

Clayco: Datacenter revenue grew from $1.5B (2023) to$3.6B (2024), now representing 50% of total company revenue. Launched dedicated “Clayco Compute” business unit in January 2025.

DPR Construction: $3B+ datacenter revenue (31$9.7B total), with 250+ projects and 1.5 GW delivered since 1997. The nation’s largest datacenter contractor by project count.

Turner Construction: #1 ENR ranking with $20.2B total revenue (2024), major datacenter portfolio including Meta Louisiana ($10B), CoreWeave Pennsylvania ($6B), and Vantage Ohio ($2B).

Holder Construction: Tops BD+C ranking as nation’s leading datacenter builder with 250+ completed projects in the last decade.

Timeline Compression & Delivery Pressure

Traditional datacenter construction timelines of 24-36 months have compressed dramatically:

• Standard Timeline: Now 18-24 months from groundbreaking to commissioning
• Fast-Track Records: DPR completed a facility in 107 days; xAI Memphis in 122 days
• Modular Construction: Reduces schedules by 3-6 months versus stick-built
• Simultaneous Construction: Design-build with overlapping site prep, shell, and fit-out
• Prefabrication: Off-site manufacturing of electrical skids, mechanical systems reducing field time by 12+ weeks

Specialized Expertise Requirements

Modern datacenter construction requires expertise far beyond traditional commercial building:

• Liquid Cooling Installation: Direct-to-chip systems, rear-door heat exchangers, immersion cooling
• High-Density Electrical: 2000A+ busways, 480V/13.8kV/34.5kV distribution, generator farms
• Seismic & Vibration Isolation: Critical for raised floor systems and sensitive equipment
• Clean Room Protocols: Maintaining particle counts during construction and commissioning
• Security & Hardening: Blast-resistant construction, SCIF-level security for government facilities
• Commissioning Complexity: Integrated systems testing with 95%+ uptime requirements

Major Contractors Comparison

Top 10 Datacenter Construction Firms

*Based on contractors.json data and industry sources

Revenue Concentration Analysis

The datacenter boom has fundamentally reshaped contractor business models:

• Clayco: 50% of $7.2B revenue from datacenters (2024)
• DPR: 31% of $9.7B revenue, highest absolute datacenter revenue
• Holder: Estimated 40%+ concentration based on BD+C ranking
• Turner: Estimated 20-25% of $20.2B revenue given major project portfolio

This concentration creates both opportunity and risk: unprecedented growth potential but significant exposure if the datacenter market slows.

Major Contractors Deep Dive

DPR Construction

Headquarters: Redwood City, California Founded: 1990 (Employee-owned) Total Revenue: $9.7B (2023) **DC Revenue**:$3B+ (31%) Projects: 250+, 1.5 GW deployed since 1997

Strategic Position: The nation’s largest datacenter contractor by project count, with an unmatched safety record (0.29 EMR) and zero-defects quality program. Employee ownership enables long-term customer relationships, particularly with Meta/Facebook.

Key Projects:

• Meta Richland Parish, Louisiana: $10B (DPR scope ~$4B), 4M sq ft total, 2M sq ft DPR scope, 1+ GW capacity. Joint venture with Turner and Mortenson. Meta’s largest AI datacenter, 5,000+ workers at peak. Completion 2030.
• Meta Mesa, Arizona: $1B, 5-building campus, 2.5M sq ft, 250 MW, LEED Gold, 100% renewable energy. Completion 2026.
• Meta Fort Worth, Texas: $1.5B, 170-acre campus, 5 data centers across 2.5M sq ft. Delivered in phases 2015-2023.
• Crusoe Abilene, Texas: $2B, 1.2 GW (expanded from 2 to 8 buildings during construction), liquid cooling optimized. Partnership with Rosendin Electric (1,200+ electrical workers).
• Meta Henrico, Virginia: $2B, 130-acre site, 2.5M sq ft, 5-building H-configuration campus, 240 MW.

Specialization:

• Meta/Facebook preferred contractor (10+ year relationship, $5B+ projects)
• Liquid cooling expertise for AI/ML workloads
• 300+ VDC/BIM professionals on staff
• Advanced prefabrication capabilities (12 weeks faster on key projects)
• Self-perform capabilities: concrete, drywall, doors, low-voltage electrical
• Zero defects quality program: 110 projects with zero defects last year

Competitive Advantages:

• Employee ownership structure enabling 30+ year customer relationships
• Industry-leading safety: 0.29 experience modifier rate (lowest for contractor of size)
• Largest datacenter contractor by project count (250+ in 10 years)
• Northern Virginia dominance: 4.27M sq ft delivered in 5 years in Data Center Alley

Turner Construction

Headquarters: New York, New York Founded: 1902 Total Revenue: 20.2B (2024) - #1 ENR Ranking **DC Revenue**: 4B+ estimated Projects: 100+ datacenters

Strategic Position: America’s largest contractor by revenue, with extensive hyperscale experience and strategic partnerships with major cloud providers including Meta and Microsoft.

Key Projects:

• Meta Richland Parish, Louisiana: $10B joint venture with DPR and Mortenson, 4M sq ft, 1+ GW. Turner as lead contractor on Meta’s largest datacenter.
• CoreWeave Pennsylvania: $6B, joint venture with Wohlsen Construction, Lancaster location. Initial 100 MW capacity expanding to 300 MW. Purpose-built for AI infrastructure. Announced July 2025.
• Vantage OH1, New Albany, Ohio: $2B, three buildings totaling 1.5M sq ft, 192 MW capacity on 70-acre site. First building operational 2025.
• Meta Jeffersonville, Indiana: $800M datacenter campus.
• QTS Ashburn, Virginia: 400,000 sq ft, 335,000 SF datacenter + 65,000 SF office, 32 MW. First three-story datacenter in Ashburn. Opened August 2018.

Specialization:

• Hyperscale expertise with Meta, Microsoft, Google relationships
• Design-build delivery method
• Joint venture partnerships for mega-projects
• National footprint with offices in major datacenter markets

Competitive Advantages:

• Largest contractor by revenue providing financial stability
• Proven mega-project delivery ($10B+ projects)
• Deep hyperscaler relationships built over decades
• Design-build capabilities accelerating delivery

Holder Construction

Headquarters: Atlanta, Georgia Total Revenue: $3.5B+ estimated **DC Revenue**:$1.5B+ estimated (40%+) Projects: 250+ in last 10 years Ranking: #1 BD+C Top Data Center Contractors (2024)

Strategic Position: BD+C’s top-ranked datacenter contractor, specializing in hyperscale campus delivery with long-term client relationships.

Key Projects:

• Google Fort Wayne, Indiana: $2B (Project Zodiac), 12-building campus on 700+ acres. Initial$845M for first building with potential to grow to $4B. Broke ground April 2024.
• EdgeCore Mesa, Arizona: $1.9B campus, three buildings on 43 acres (each three stories), 450 MW minimum capacity. Water-neutral design. PH02 (108 MW) topped out December 2024, completion 2026.
• Iron Mountain Phoenix Expansion: $430M investment, 555,000 sq ft expansion over 5 years, 48 MW multi-tenant facility. First phase (24 MW) completed June 2019.

Specialization:

• Nation’s leading data center & telecom builder
• 250+ complex data & telecom projects in last 10 years
• Design-build and construction management expertise
• Multi-phase campus delivery

Competitive Advantages:

• BD+C #1 ranking demonstrates market leadership
• Proven campus-scale delivery capability
• Long-term client relationships enabling repeat business
• OSHA partnerships demonstrating safety commitment

Clayco

Headquarters: Chicago, Illinois Total Revenue: $7.2B (2024) **DC Revenue**:$3.6B (50% of revenue) Projects: 57 active datacenters, ~3 GW pipeline Growth: DC revenue up from $1.5B (2023) to$3.6B (2024) - 140% YoY

Strategic Position: Most aggressive growth story in datacenter construction. Launched dedicated “Clayco Compute” business unit in January 2025, signaling commitment to sector dominance.

Key Projects:

• Microsoft Elk Grove Village, Illinois: $450M investment, three-building campus on 37 acres, 400,000 sq ft supporting Azure and cloud services. Construction started 2021.
• Equinix CH3, Elk Grove Village: 240,000 sq ft Tier IV datacenter, 14 MW critical load.
• QTS Fayetteville, Georgia: General contractor alongside HITT for campus project connecting East Coast cities to Southern markets.

Specialization:

• 57 active datacenter projects representing ~3 GW
• Integrated delivery: design-build with self-perform capabilities
• “Clayco Compute” dedicated datacenter business unit
• Rapid scaling: 140% YoY datacenter revenue growth

Competitive Advantages:

• Fastest-growing major contractor in datacenter space
• Integrated project delivery reducing coordination challenges
• Self-perform capabilities accelerating timelines
• 50% revenue concentration demonstrates full commitment

Mortenson

Headquarters: Minneapolis, Minnesota Total Revenue: $6.5B+ estimated **DC Revenue**:$2B+ estimated Projects: 50+ datacenter projects

Strategic Position: Major hyperscale and mega datacenter contractor with extensive renewable energy integration experience.

Key Projects:

• Meta Richland Parish, Louisiana: Joint venture partner with Turner and DPR on $10B Meta AI datacenter, 4M sq ft, 1+ GW capacity.
• Meta Eagle Mountain, Utah: LEED Gold project with 28 data halls across multiple phases, nearly 300 MW. Began 2018, campus completion end of 2025. Expanded to 4.5M sq ft total.
• QTS Chicago, Illinois: Redevelopment of former Chicago Sun-Times printing facility (317,000 sq ft), 24 MW critical power. Also built new 125 MW substation. Opened July 2015.
• Abilene, Texas (Lancium/Crusoe): Large-scale AI datacenter complex, EPC contractor for electrical infrastructure.

Specialization:

• Renewable energy integration expertise (solar, wind, hydro)
• Mega-campus delivery capability
• LEED certification expertise
• Fast-track delivery: Aurora datacenter broke ground June 2015, completed December 2015 (6 months)

Competitive Advantages:

• Deep renewable energy experience applicable to datacenter sustainability
• Proven mega-campus track record (Meta Eagle Mountain 4.5M sq ft)
• Joint venture partnerships with top-tier contractors
• EPC capabilities for electrical infrastructure

McCarthy Building Companies

Headquarters: St. Louis, Missouri Total Revenue: $6B+ estimated **DC Revenue**:$2B+ estimated Projects: 40+ mission critical projects

Strategic Position: Western US datacenter leader with strong Arizona presence and Vantage Data Centers partnership.

Key Projects:

• Vantage AZ1 Campus, Goodyear, Arizona: $1.5B+ investment, 5 planned datacenters on 50-acre campus, 176 MW critical IT load, over 1M sq ft. AZ11 and AZ12 delivered (July 2023, March 2024), AZ13 completed December 2024, AZ14 topped out December 2024 (expected summer 2026). Water-neutral closed-loop chilled water system.
• FAA Data Center, Hampton, Georgia: 16,000 SF network enterprise management center managing flight patterns for entire southeast US and Caribbean. Busiest ATC facility in United States.

Specialization:

• Western US market leadership
• Mission critical infrastructure expertise
• Water-neutral cooling systems
• Government/federal datacenter experience

Competitive Advantages:

• Dominant Arizona market position via Vantage partnership
• Proven multi-phase campus delivery
• Water-neutral cooling expertise critical for Western US
• Federal government clearances and experience

JE Dunn Construction

Headquarters: Kansas City, Missouri Total Revenue: $4B+ estimated **DC Revenue**:$1.5B+ (720 MW, 3.4M sq ft in 2024 alone) Ranking: #7 in datacenters (ENR)

Strategic Position: Midwest datacenter leader with extensive self-perform capabilities enabling rapid delivery and cost control.

Key Projects:

• Meta Temple, Texas: $800M, 386-acre greenfield development, three buildings totaling 750,000+ sq ft, 152 MW. Began April 2022, paused December 2022, resumed October 2023 after redesign for AI systems. Peak workforce: 1,200 skilled tradespeople. Over halfway complete as of March 2025.
• Digital Realty: 568,476 sq ft, two-story, 58 MW datacenter. First facility on 41-acre site.
• Stream Data Center DFW VII, Garland, Texas: First of two 15 MW, 140,000 sq ft hyperscale buildings on 22.6-acre site. Includes 25,000 SF fully commissioned white space at 3 MW power.
• Santa Clara, California (Confidential): Converting decommissioned semiconductor facility into high-density datacenter through 7 phases. Over 56 MW critical capacity. Ongoing since 2015.

Specialization:

• Self-perform capabilities reducing subcontractor dependencies
• Adaptive reuse expertise (semiconductor-to-datacenter conversions)
• Midwest market dominance
• AI infrastructure redesigns (Meta Temple pivot)

Competitive Advantages:

• Strong self-perform reducing schedule and cost risks
• 720 MW, 3.4M sq ft delivered in single year (2024)
• Proven ability to adapt mid-construction (Meta Temple AI redesign)
• Semiconductor facility conversion expertise valuable for brownfield sites

Structure Tone (STO Building Group)

Headquarters: New York, New York (strong Ireland presence) Projects: International focus, especially Europe Specialization: Mission critical, hyperscale

Strategic Position: Global mission critical specialist with particular strength in European and Irish markets.

Key Projects:

• CyrusOne Dublin Campus - Phase 1: Shell & core construction including technical fit-out through to racks, 18 MW commissioning. Two-story datacenter with 30,000 sq ft office. Campus ultimately three datacenters with 54 MW IT load total.
• Yahoo Lockport, New York: Partnership with Lehigh Construction Group. 180,000 SF (one admin building + five data wings). Air-cooled design accommodating 50,000 servers. 40% less energy, 95% less water than conventional. First high-density datacenter built for under $5M per megawatt. Completed in under 1 year from groundbreaking.

Specialization:

• International datacenter expertise (Europe, Ireland)
• Hyperscale technical fit-out
• Innovative cooling designs
• Cost-efficiency focus ($5M/MW versus industry$8-12M/MW)

Competitive Advantages:

• Strong European market position
• Irish datacenter market leadership
• Cost-efficient delivery models
• Technical fit-out specialization

Black & Veatch

Headquarters: Overland Park, Kansas Specialization: Power & utility infrastructure EPC Experience: 40+ years datacenters, 120+ projects last decade

Strategic Position: Engineering, procurement, and construction firm specializing in power and utility infrastructure supporting datacenters rather than building construction.

Key Projects:

• Nautilus Floating Data Center, Stockton, California: World’s first commercial floating water-cooled datacenter, 7 MW. Third-party due diligence and commissioning oversight for cooling, electrical, and machinery systems. Zero-water consumption design.
• Multiple Datacenter Substations: Selected to construct substations at six expanding locations. Transmission voltages from 69 kV to 765 kV, substations ranging 4 kV through 500 kV.

Specialization:

• Electrical substation construction
• Power generation integration (natural gas backup)
• Utility interconnection engineering
• Industrial wastewater systems
• Permitting and regulatory expertise

Competitive Advantages:

• Power infrastructure expertise critical as datacenters consume 1-2 GW
• Substation construction capability scarce and highly valued
• Utility relationships enabling faster interconnection
• Innovative designs (floating datacenter commissioning)

Construction Approach Evolution

The datacenter construction industry has evolved dramatically from traditional approaches to cutting-edge methods enabling faster delivery and higher density:

Traditional Stick-Built Construction

Timeline: 18-24 months (formerly 24-36 months) Characteristics:

• Sequential construction: site prep → foundation → structure → MEP → fit-out
• Field fabrication of all electrical and mechanical systems
• Traditional concrete and steel construction methods
• Slower but proven reliability

Advantages:

• Lower upfront capital requirements
• Design flexibility during construction
• Established labor pool familiar with methods
• Proven reliability over decades

Disadvantages:

• Longer timelines (18-24 months best case)
• Weather-dependent field work
• Quality control challenges with field fabrication
• Labor-intensive requiring large on-site crews

Modular & Prefabrication

Timeline: 12-18 months (3-6 months faster) Characteristics:

• Off-site manufacturing of building components
• Factory-built electrical skids with pre-installed switchgear, UPS systems
• Prefabricated mechanical modules
• Simultaneous site and factory work

Major Innovations:

Electrical Prefabrication (DPR + GPLA Engineering):

• Structural skids preinstalled with switchgear and UPS systems
• 2 MW per skid delivered complete to site
• Reduces field electrical work by 40-60%
• Quality control in factory environment

Mechanical Prefabrication:

• Pre-assembled cooling towers
• Pre-piped chiller modules
• Integrated control systems tested before shipment
• Reduces field labor by 30-50%

White Space Modules:

• Complete raised floor sections with built-in cooling
• Pre-wired overhead busway systems
• Pre-tested and commissioned before delivery
• Plug-and-play installation in days versus weeks

Advantages:

• 3-6 month schedule reduction
• Higher quality control in factory environment
• Weather-independent manufacturing
• Reduced field labor requirements (critical during labor shortages)
• Earlier identification of design issues

Disadvantages:

• Higher upfront engineering requirements
• Transportation logistics and costs
• Limited design flexibility after manufacturing begins
• Requires larger initial capital commitment

Leading Practitioners: DPR Construction (12 weeks faster via prefab), Fortis Construction, Turner Construction

Tilt-Up Concrete

Timeline: 15-20 months Characteristics:

• Concrete wall panels cast on-site then tilted into vertical position
• Faster than traditional formed concrete
• Cost-effective for large rectangular buildings
• Common for hyperscale datacenters

Advantages:

• 30-40% faster than traditional concrete construction
• Cost-effective for large footprints
• Excellent thermal mass for cooling efficiency
• Fire-resistant construction

Disadvantages:

• Limited to lower-rise structures (typically 1-2 stories)
• Large, flat sites required
• Weather-dependent during concrete curing
• Limited architectural flexibility

Typical Applications: Hyperscale single-story datacenters, mega-campuses with standardized building designs

Simultaneous Construction (Design-Build)

Timeline: 15-21 months Characteristics:

• Overlapping design and construction phases
• Site preparation begins before full design completion
• Foundation work concurrent with detailed MEP design
• Shell construction concurrent with fit-out design

Process:

1. Months 1-3: Site preparation concurrent with foundation design finalization
2. Months 3-9: Foundation and structure concurrent with MEP detailed design
3. Months 9-18: Shell completion and MEP installation concurrent with fit-out design
4. Months 18-21: Fit-out installation and commissioning

Advantages:

• 3-6 month schedule reduction versus sequential construction
• Earlier project start dates
• Flexibility to incorporate late technology changes
• Reduced total project risk period

Disadvantages:

• Higher risk of rework if early decisions change
• Requires experienced contractor managing parallel tracks
• More complex coordination
• Design changes become increasingly expensive as construction progresses

Leading Practitioners: Turner Construction, DPR Construction, Holder Construction (all major contractors now use design-build)

AI-Optimized Designs

Timeline: 12-18 months (faster for experienced teams) Characteristics:

• Purpose-built for liquid cooling from day one
• 100-350+ kW rack densities versus traditional 5-15 kW
• Integrated liquid cooling infrastructure
• Higher power density electrical systems

Key Design Elements:

Liquid Cooling Integration:

• Direct-to-chip cooling systems
• Rear-door heat exchangers
• Immersion cooling tanks
• Hybrid air/liquid cooling zones

High-Density Electrical:

• 2000A+ overhead busways (versus traditional 400-800A)
• 480V/13.8kV distribution systems
• Generator farms (50-100+ MW)
• Utility interconnection at 34.5kV or higher

Optimized Layouts:

• Reduced raised floor plenum (less air cooling required)
• Smaller white space footprint (higher density)
• Centralized cooling plant versus distributed
• Modular expansion capability

Examples:

• xAI Memphis: 122-day buildout for 100,000 H100 GPUs
• DPR Fast-Track: 107-day datacenter delivery
• CoreWeave Facilities: Purpose-built GPU clusters with liquid cooling
• Crusoe Abilene: 1.2 GW campus with 8 buildings designed for liquid cooling

Advantages:

• Supports next-generation AI workloads
• Higher revenue per square foot for operators
• More energy-efficient than retrofitting air-cooled facilities
• Future-proofed for increasing power densities

Disadvantages:

• Higher upfront cost per square foot
• Requires specialized liquid cooling expertise
• More complex commissioning process
• Limited track record (technology still evolving)

Specialized Requirements Analysis

Modern datacenter construction demands expertise far exceeding traditional commercial building:

Liquid Cooling Installation

Challenge: AI workloads generating 100-350 kW per rack (versus traditional 5-15 kW) require liquid cooling systems unprecedented in commercial construction.

Technical Requirements:

Direct-to-Chip Cooling:

• Cold plates mounted directly on CPUs/GPUs
• Cooling loops at rack level with 20-40°C water
• Distribution manifolds managing hundreds of connections
• Leak detection systems with redundancy
• Precision flow control maintaining chip temperatures

Rear-Door Heat Exchangers:

• Heat exchangers mounted on rack rear doors
• Facility chilled water integration
• Hybrid air/liquid approach (servers exhaust into heat exchanger)
• Passive cooling (no pumps at rack level)
• Supports 40-80 kW racks

Immersion Cooling:

• Servers submerged in dielectric fluid
• Fluid circulation and heat exchange systems
• Specialized server designs (sealed components)
• Fluid management and filtration
• Supports 100+ kW per tank

Contractor Expertise Required:

• Mechanical systems engineering
• Precision piping fabrication (leak-free critical)
• Integration with facility cooling plant
• Commissioning and testing protocols
• Ongoing maintenance and monitoring

Leading Contractors: DPR Construction (extensive liquid cooling portfolio), Aligned Data Centers (DeltaFlow™), CyrusOne (Intelliscale platform)

High-Density Electrical Infrastructure

Challenge: Datacenters now requiring 50-200+ MW (versus traditional 5-20 MW) with 99.99%+ uptime requirements.

Power Distribution Hierarchy:

Utility Interconnection:

• 34.5kV, 115kV, or 230kV utility feeds
• Multiple substations (N+1 or 2N redundancy)
• Utility coordination for capacity allocation
• Long lead times (2-5 years for new substations)

On-Site Generation:

• Diesel generator farms: 50-100+ generators
• 2-3 MW per generator typical
• N+1 or 2N redundancy
• Fuel storage and management (7-14 days runtime)
• Weekly/monthly testing and maintenance

Medium Voltage Distribution:

• 13.8kV or 4.16kV distribution within facility
• Switchgear and transformers
• Redundant paths (A/B feeds)
• Arc flash protection

Low Voltage Distribution:

• 480V distribution to UPS systems
• 2000-3000A busways overhead
• Branch circuit distribution to racks
• Remote power panels (RPPs) at row level

Rack Power Delivery:

• 400A-800A per rack for AI systems (versus traditional 20-60A)
• 3-phase power distribution
• Intelligent PDUs with monitoring
• Cable management for high-current feeds

Contractor Expertise Required:

• High-voltage electrical design and installation
• Generator farm construction and integration
• UPS system installation and testing
• Busway installation at extreme amperages
• Integrated systems commissioning

Critical Partners: Rosendin Electric (1,200+ electricians on Crusoe Abilene), GPLA Engineering (prefabricated electrical skids)

Seismic & Vibration Isolation

Challenge: Ensuring continuous operation during seismic events while managing vibrations from massive cooling and generator systems.

Raised Floor Systems:

• Seismic bracing for raised floor pedestals
• Lateral restraints preventing floor collapse
• Clearances allowing floor movement independent of racks
• Typical raised floor: 24-36 inches with structural capacity for 150-300 lbs/sq ft

Equipment Isolation:

• Vibration-isolated cooling towers and chillers
• Generator vibration isolation preventing transmission to structure
• Precision leveling for equipment (±1/4 inch over 40 feet)
• Spring isolators, neoprene pads, or active isolation systems

Structural Design:

• Enhanced structural design for seismic zones (California, Oregon, Alaska)
• Lateral force-resisting systems (shear walls, moment frames)
• Redundant load paths
• Seismic joints allowing independent building movement

Contractor Expertise Required:

• Seismic engineering and analysis
• Precision equipment installation
• Vibration isolation system design
• Structural systems construction in seismic zones

Clean Room Protocols

Challenge: Maintaining strict particle count limits during construction to protect sensitive electronics.

Cleanliness Standards:

• ISO Class 7 or 8 clean room standards (versus typical construction site)
• Particle counts: less than 10,000 particles (≥0.5 μm) per cubic foot
• Positive air pressure maintaining cleanliness
• HEPA filtration systems during construction

Construction Controls:

• Dust barriers and containment during construction
• HEPA-filtered negative air machines
• Shoe covers, coveralls, gloves for workers in white space
• Tool and equipment cleaning before entry
• Progressive cleaning: rough clean → detail clean → final clean

Commissioning Phase:

• Air quality monitoring and validation
• Surface cleanliness verification
• Pre-install cleaning of racks and equipment
• Ongoing monitoring during equipment installation

Contractor Expertise Required:

• Clean room construction protocols
• Contamination control planning
• Specialized cleaning procedures
• Quality control and monitoring

Security & Hardening

Challenge: Protecting critical infrastructure from physical threats while maintaining operational access.

Physical Security Measures:

Perimeter Security:

• Reinforced fencing (8-10 feet) with anti-climb features
• Vehicle barriers (bollards, crash-rated gates)
• Surveillance systems (cameras, motion detection)
• Security lighting (no dark zones)
• Perimeter access control points

Building Hardening:

• Reinforced concrete walls (12-18 inches) for critical areas
• Blast-resistant design for high-security facilities
• Ballistic-resistant materials for critical components
• Secure roof access prevention
• Window elimination or ballistic glazing

Access Control Systems:

• Multi-factor authentication (badge + biometric)
• Mantrap entries preventing tailgating
• Segregated zones (office, operations, white space)
• Visitor escort requirements
• Access logging and monitoring

SCIF-Level Requirements (for government facilities):

• Tempest shielding preventing electromagnetic emissions
• Sound attenuation preventing audio surveillance
• Secure construction with cleared workers
• Continuous security monitoring during construction

Contractor Expertise Required:

• Security system integration
• Hardened construction techniques
• Cleared workforce for classified facilities
• Coordination with security consultants

Commissioning Complexity

Challenge: Validating integrated systems achieve 99.99%+ uptime requirements before going operational.

Commissioning Phases:

Phase 1: Factory Acceptance Testing (FAT):

• Testing prefabricated components before shipment
• Electrical skids load-tested at factory
• Mechanical modules performance-verified
• Control systems programming validated

Phase 2: Installation Verification:

• Confirming correct installation per design
• Physical inspection of all systems
• Verification of redundancy paths
• Documentation review (as-builts, O&M manuals)

Phase 3: Functional Testing:

• Individual system performance verification
• Electrical systems: load bank testing, transfer testing
• Mechanical systems: cooling capacity verification, airflow testing
• Controls testing: automation sequences, alarm verification

Phase 4: Integrated Systems Testing (IST):

• Testing multiple systems working together
• Failure scenario testing (N+1 component failures)
• Emergency power testing (utility failure simulation)
• Recovery procedures validation

Phase 5: Operational Readiness:

• Full-load testing at design capacity
• 24-72 hour continuous operation test
• Documentation turnover
• Training for operational staff
• Punch list completion

Typical Duration: 4-8 months for large datacenter

Contractor Expertise Required:

• Systems integration knowledge
• Testing protocol development
• Commissioning coordination (often 3rd party commissioning agent)
• Documentation and closeout
• Owner training

Critical Success Factor: Experienced commissioning team identifying issues before operational handover. Commissioning typically represents 5-10% of total project cost but is critical to achieving uptime requirements.

Joint Ventures & Partnerships

The scale and complexity of modern datacenter mega-projects has driven unprecedented collaboration among contractors:

Strategic Joint Ventures

Meta Richland Parish, Louisiana ($10B):

• Partners: Turner Construction (lead) + DPR Construction + Mortenson
• Structure: Joint venture with shared risk/reward
• Rationale: Largest single datacenter project requires combined capacity of three top-tier contractors
• Scope Division:
  • Turner: Overall project management, site development
  • DPR: 2M sq ft scope (4 data hall buildings + network building)
  • Mortenson: Mechanical systems and renewable energy integration
• Scale: 5,000+ workers at peak, 500+ operational jobs, 6-year construction timeline

CoreWeave Pennsylvania ($6B):

• Partners: Turner Construction + Wohlsen Construction (local)
• Structure: Joint venture
• Rationale: National expertise (Turner) + local relationships (Wohlsen)
• Capacity: Initial 100 MW expanding to 300 MW
• Timeline: Announced July 2025, approximately 600 construction jobs

Long-Term Partnerships

DPR Construction + Meta/Facebook:

• Relationship: 10+ years, $5B+ in projects
• Projects: Fort Worth, Henrico, Mesa, Richland Parish
• Model: Preferred contractor status with repeated awards
• Success Factors:
  • Employee ownership enabling long-term focus
  • Zero defects quality program
  • Industry-leading safety (0.29 EMR)
  • Proven delivery on schedule and budget

Holder Construction + Google:

• Project: Fort Wayne Indiana ($2B+)
• Scope: 12-building campus on 700+ acres
• Potential: Up to $4B total if fully built out
• Timeline: Groundbreaking April 2024

McCarthy Building Companies + Vantage Data Centers:

• Project: Vantage AZ1 Campus, Goodyear, Arizona
• Scope: 5 buildings, 176 MW, $1.5B+, over 1M sq ft
• Timeline: Multi-year relationship with AZ11/AZ12/AZ13/AZ14 delivered sequentially
• Innovation: Water-neutral closed-loop chilled water system critical for Arizona

Contractor-Subcontractor Strategic Partnerships

DPR Construction + Rosendin Electric + Southland Industries (Crusoe Abilene):

• Scale: 1.2 GW campus, 8 buildings
• Rosendin: 1,200+ electrical workers
• Southland: Mechanical/plumbing scope
• Model: Prime contractor coordination with major subcontractors

DPR + GPLA Engineering (Electrical Prefabrication):

• Innovation: Structural skids preinstalled with switchgear, UPS systems
• Capacity: 2 MW per skid
• Benefit: 12 weeks faster installation versus field fabrication
• Application: Multiple DPR projects leverage prefab skids

International Joint Ventures

CyrusOne + KEPCO (Japan):

• Investment: $7B partnership targeting 900 MW over decade
• Structure: Joint venture
• Market: Japan AI datacenter expansion
• Contractors: International construction partners (structure unknown)

Vantage Data Centers + DigitalBridge:

• Relationship: PE backing enabling global expansion
• Projects: Frontier Quincy ($25B, 1,290 MW), global portfolio
• Model: Financial partner providing capital for mega-projects

Benefits of Joint Ventures

Risk Sharing:

• $5B-10B projects too large for single contractor
• Shared liability and insurance requirements
• Diversified expertise reducing technical risks

Capacity & Scale:

• Combined workforce of 5,000+ workers
• Purchasing power for materials and equipment
• Geographic reach leveraging multiple office locations

Expertise Combination:

• Local relationships + national experience
• Specialized capabilities (renewable energy, liquid cooling, electrical)
• Proven track records with different hyperscaler customers

Financial Strength:

• Combined bonding capacity for mega-projects
• Access to capital for equipment and materials
• Shared project financing and cash flow management

Challenges of Joint Ventures

Coordination Complexity:

• Multiple management teams requiring alignment
• Decision-making protocols across partners
• Integrated scheduling across separate organizations

Cultural Differences:

• Different company cultures and approaches
• Varying safety and quality standards
• Compensation and incentive structures

Liability Allocation:

• Determining responsibility for defects/delays
• Insurance and bonding across multiple entities
• Dispute resolution mechanisms

Innovation & Technology Adoption

The datacenter construction industry has become a technology leader, adopting cutting-edge approaches transforming delivery:

Building Information Modeling (BIM) & Digital Twins

BIM Adoption: Modern datacenter construction is virtually impossible without comprehensive BIM:

DPR Construction Leadership:

• 300+ VDC/BIM professionals on staff (largest in industry)
• All projects use BIM from design through operations
• 4D visual planning (3D model + time dimension)
• Clash detection identifying conflicts before construction

Applications:

Design Coordination:

• Identifying MEP conflicts in 3D before field installation
• Coordination of dense overhead busway, cable tray, HVAC, fire protection
• Saves 4-8 weeks versus field coordination
• Reduces rework by 60-80%

Prefabrication Planning:

• Exact dimensions for prefabricated components
• Interference checking for modular installations
• Transportation and rigging planning
• Installation sequencing optimization

Construction Sequencing:

• 4D simulation showing construction sequence
• Identifying space constraints and crew conflicts
• Logistics planning for material deliveries
• Just-in-time delivery coordination

Digital Twins:

• As-built BIM models transferred to operators
• Integration with building management systems
• Ongoing operational optimization
• Future expansion planning

Technology Platforms:

• Autodesk Construction Cloud: DPR’s single source of truth for all projects
• BIM Track: Enterprise design coordination and issue management
• ConstructivIQ: Procurement management (deployed on $800M Meta Temple)

Impact: 12+ week schedule acceleration, 60-80% rework reduction, improved quality

Modular Construction Advances

Evolution from Traditional Modular:

Electrical Prefabrication 2.0:

• Complete power distribution skids: generators → UPS → busway → racks
• Factory acceptance testing before shipment
• Plug-and-play installation reducing field electrical by 40-60%
• Quality control in controlled environment

Mechanical Modules:

• Pre-assembled chiller plants on skids
• Factory-piped and tested cooling distribution
• Pre-programmed controls integration
• Reduced field labor by 30-50%

White Space Modules (Fortis Innovation):

• Complete room modules with raised floor, lighting, cooling, power
• Factory-built and tested before shipment
• Crane-installed in days versus weeks
• Supports rapid expansion (add modules as needed)

Pod-Based Designs:

• Standardized datacenter “pods” (e.g., 2-4 MW per pod)
• Repeated designs across multiple buildings/campuses
• Supply chain optimization (bulk purchasing)
• Predictable performance and operations

Benefits:

• 3-6 month schedule reduction
• 25-40% labor reduction
• Weather-independent manufacturing
• Higher quality control
• Flexibility to delay/accelerate modules based on demand

Challenges:

• Higher upfront design requirements
• Transportation logistics (oversized loads)
• Crane capacity requirements
• Limited flexibility after manufacturing
• Requires experienced integration contractors

Liquid Cooling Pre-Integration

Factory Integration Approach:

Rather than field-installing liquid cooling systems, leading contractors now pre-integrate at factory:

Rack-Level Pre-Integration:

• Complete racks with servers and cooling manifolds installed
• Testing before shipment to datacenter
• Plug-in connections at datacenter (power, network, cooling)
• Reduces on-site commissioning time by weeks

Module-Level Integration:

• Pre-piped cooling distribution modules
• Heat exchanger modules pre-tested
• Coolant distribution units (CDUs) factory-tested
• Field installation primarily connection work

Benefits:

• Faster time-to-revenue for operators
• Higher quality control and leak testing
• Reduced specialized labor at datacenter site
• Faster troubleshooting (factory testing validates design)

Leading Practitioners:

• DPR Construction (extensive liquid cooling portfolio)
• Aligned Data Centers (DeltaFlow™ integration)
• CoreWeave (GPU cluster pre-integration)

Speed Innovations & Fast-Track Records

The industry has achieved unprecedented delivery speeds through innovation:

Record-Breaking Projects:

xAI Memphis (122 Days):

• 100,000 H100 GPUs operational
• Elon Musk-driven urgency
• 24/7 construction
• Modular approach with pre-integrated racks
• Simplified redundancy versus traditional Tier III
• July 2024 start → October 2024 operational

DPR Construction (107 Days):

• Datacenter delivered in under 4 months
• Extensive prefabrication
• Pre-tested electrical and mechanical systems
• Simplified design reducing complexity
• Fast-track commissioning

Techniques Enabling Speed:

Parallel Construction:

• Site prep, foundation, structure, MEP all overlapping
• Multiple crews working simultaneously
• 24/7 shifts where feasible
• Coordination intensive but cuts 30-40% off timeline

Pre-Commissioning:

• Factory acceptance testing of all major systems
• Reduced on-site commissioning time
• Risk reduction (issues found at factory)
• Faster startup and revenue generation

Simplified Designs:

• Accepting Tier II versus Tier III (fewer redundancies)
• Open-air designs versus enclosed (xAI Memphis)
• Reduced architectural finishes
• Focus on function over form

Design-Build Fast-Track:

• Contractor involved from early design
• Construction begins before full design completion
• Value engineering during design
• Real-time problem solving

Trade-Offs:

• Higher risk of rework if design changes
• Premium labor costs (overtime, 24/7 shifts)
• Potentially lower redundancy/uptime
• Less flexibility for late changes

When Justified:

• Rapid AI deployment requirements
• Time-to-revenue urgency
• Competitive pressure (first-mover advantage)
• Customer willingness to accept Tier II versus Tier III

Sustainability Approaches

Modern datacenter construction increasingly focuses on sustainability:

Renewable Energy Integration:

On-Site Solar/Wind:

• Mortenson expertise integrating renewables
• Meta Fort Worth, Mesa, Eagle Mountain all 100% renewable-powered
• Power purchase agreements (PPAs) with renewable developers
• Virtual PPAs matching consumption with renewable generation

Benefits:

• Hyperscaler sustainability commitments
• Long-term power cost stability
• Positive community relations
• Regulatory compliance (some jurisdictions require renewable minimums)

Water Conservation:

Waterless Cooling (Aligned Data Centers Delta3™):

• Patented technology eliminating evaporative cooling
• Critical for water-scarce regions (Arizona, Texas)
• Reduces community opposition
• Lower operating costs (no water/sewer charges)

Water-Neutral Designs (McCarthy/Vantage Arizona):

• Closed-loop chilled water systems
• Zero evaporation losses
• Rainwater capture for supplementation
• Supports Arizona expansion despite water constraints

Recycled/Sustainable Materials:

Embodied Carbon Reduction:

• Low-carbon concrete mixes
• Recycled steel (most structural steel already 90%+ recycled)
• Sustainable wood products (FSC-certified)
• Locally-sourced materials reducing transportation emissions

Waste Reduction:

• Prefabrication reducing construction waste by 30-50%
• Recycling programs on construction sites
• Adaptive reuse of existing buildings (JE Dunn semiconductor conversions)

Certifications:

• LEED Gold/Platinum (Meta Mesa, Meta Eagle Mountain, many others)
• Green Globes certification
• Living Building Challenge (rare but emerging)

Contractor Commitments:

• DPR: 300+ LEED certified projects, 600+ trained professionals, extensive renewable energy expertise
• Turner: Sustainability leadership across portfolio
• Mortenson: Deep renewable energy integration experience

Impact: Meeting hyperscaler sustainability requirements now table stakes for major datacenter contracts.

Workforce & Capacity Constraints

The datacenter construction boom has strained industry capacity to unprecedented levels:

Labor Shortage Challenges

Scale of Demand:

• 5,000+ workers on single mega-projects (Meta Louisiana)
• 1,200+ electricians on single project (Crusoe Abilene)
• 50-100+ major datacenter projects under construction simultaneously nationwide
• Estimated 100,000+ datacenter construction workers needed nationally

Skill Shortages:

Specialized Trades:

• High-voltage electricians (13.8kV, 34.5kV experience)
• Liquid cooling system installers (new discipline)
• Commissioning technicians (integrated systems)
• BIM coordinators and VDC specialists

Geographic Concentration:

• Northern Virginia: Dozens of projects competing for same labor pool
• Phoenix/Arizona: Rapid growth straining local labor market
• Texas: Multiple mega-projects simultaneous construction
• Secondary markets: Limited local skilled labor requiring travel workforce

Consequences:

• Wage inflation: 15-30% increases for specialized trades
• Schedule delays: Labor shortages extending timelines
• Quality concerns: Less experienced workers on complex projects
• Worker poaching: Projects stealing crews from competitors

Training Programs & Workforce Development

Industry Response:

Contractor Training Programs:

DPR Construction:

• Internal training programs for new hires
• VDC/BIM training for 300+ professionals
• Safety culture training (achieving 0.29 EMR)
• Apprenticeship programs partnering with unions

Turner Construction:

• National training initiatives
• Diversity and inclusion recruiting
• Veteran hiring programs
• University partnerships

Union Training Centers:

• IBEW (electricians): Liquid cooling, high-voltage training
• Plumbers & Pipefitters: Advanced HVAC, liquid cooling
• Operating Engineers: Specialized equipment operation
• Multi-craft training for datacenter specialization

Community College Programs:

• Datacenter technician certification programs
• Electrical/mechanical trades programs
• BIM/VDC training
• Partnerships with contractors for job placement

Hyperscaler Investments:

• Meta investing in construction workforce training
• Google supporting local training programs
• Microsoft funding community college initiatives

Time to Proficiency:

• Basic trades: 3-5 years apprenticeship
• Datacenter specialization: Additional 1-2 years
• Liquid cooling expertise: 6-12 months specialized training
• BIM coordination: 2-3 years to full proficiency

Capacity Constraints & Bottlenecks

Contractor Capacity Limits:

Even major contractors face limits:

Management Bandwidth:

• Limited number of experienced project managers
• Project managers managing $500M-1B+ projects
• Each mega-project requires 5-10 senior managers
• Difficulty scaling management talent rapidly

Self-Perform Limits:

• DPR’s self-perform capabilities have capacity limits
• Trade crews fully utilized across multiple projects
• Equipment constraints (cranes, specialized tools)

Geographic Constraints:

• Opening new offices requires years (relationships, licensing)
• Bonding capacity limits (insurance requirements for multiple simultaneous large projects)

Supply Chain Bottlenecks:

Long-Lead Equipment:

• Electrical switchgear: 52-78 weeks (was 20-30 weeks pre-2020)
• Transformers: 78-104 weeks for large units
• Generators: 52-78 weeks for 2+ MW units
• Chillers: 40-52 weeks for large capacity
• UPS systems: 26-52 weeks

Semiconductor Shortage Impact:

• Control systems delayed by chip shortages
• Building management systems affected
• Electrical distribution controls
• HVAC automation systems

Material Shortages:

• Copper: Electrical distribution, generators, transformers
• Steel: Structural and electrical (busway, cable tray)
• Concrete: Ready-mix capacity constraints in high-growth markets

Mitigation Strategies:

Early Procurement:

• Ordering long-lead equipment 18-24 months before installation
• Letters of intent before full design completion
• Stocking programs for common equipment

Pre-Manufacturing:

• Building equipment early and storing
• Prefabrication creating buffer inventory
• Modular construction enabling parallel manufacturing

Supply Chain Diversification:

• Multiple equipment vendors qualified
• International sourcing where feasible
• Alternative materials/designs reducing dependency

Wage Inflation & Cost Pressure

Labor Cost Increases:

Specialty Trades Premium:

• High-voltage electricians: $50-80/hour (up from$35-50)
• Liquid cooling installers: $45-70/hour (new specialty)
• Commissioning engineers: $80-120/hour
• BIM coordinators: $65-95/hour

Geographic Premiums:

• Northern Virginia: 20-30% above national average
• San Francisco Bay Area: 30-40% above national average
• Travel workforce: Additional 30-50% for per diem/travel

Overtime Costs:

• Fast-track schedules requiring 10-12 hour days, 6-7 days/week
• Overtime premium: 1.5x-2x standard rates
• Can add 25-40% to labor costs

Material Cost Inflation:

• Copper: Up 50-100% since 2020
• Steel: Up 30-60% since 2020
• Concrete: Up 20-40% depending on market
• Electrical equipment: Up 15-35%

Impact on Project Costs:

• Construction costs: $8-15M per MW (up from$5-8M pre-2020)
• Hyperscale wholesale: Lower end ($8-10M/MW)
• Enterprise colocation: Higher end ($12-15M/MW)
• AI-optimized liquid cooling: Premium $15-20M/MW

Contractor Response:

Cost Plus Contracts:

• Shift from fixed-price to cost-plus-fee
• Hyperscalers accepting cost uncertainty
• Guaranteed maximum price (GMP) with contingencies

Value Engineering:

• Design optimization reducing costs
• Alternative materials/methods
• Standardized designs enabling bulk purchasing

Prefabrication ROI:

• Higher upfront costs offset by labor savings
• Weather independence reducing schedule risk
• Quality improvements reducing rework costs

Union vs Non-Union Dynamics

Union Strongholds:

• Northern Virginia: Heavy union presence
• Illinois/Chicago: Union-dominated market
• West Coast: Strong union markets
• Northeast: Traditional union territories

Right-to-Work States:

• Texas: Mix of union and open shop
• Arizona: Predominantly open shop
• Southeast: Generally open shop
• Mountain West: Mix depending on locality

Project Labor Agreements (PLAs):

• Some mega-projects negotiating PLAs
• Ensures labor supply and stability
• Sets wages and work rules
• Prevents strikes during construction

Advantages of Union Labor:

• Established training programs and apprenticeships
• Skilled workforce with specialized datacenter experience
• Benefits and stability reducing turnover
• Safety culture and protocols

Advantages of Open Shop:

• Lower wage rates (15-30% less than union)
• Flexibility in work rules and scheduling
• Broader labor pool
• Merit-based compensation

Hybrid Approaches:

• Some contractors using union electricians (specialized high-voltage) but open shop for other trades
• Geographic flexibility (union in Northeast/West Coast, open shop in Southeast/Texas)
• Project-specific decisions based on labor availability and costs

Impact on Industry:

• Labor shortages strengthening union leverage
• Training programs becoming critical differentiator
• Wage convergence as non-union rates rise to attract workers
• Collaboration on workforce development regardless of union status

Regional Specialization & Geographic Dynamics

The datacenter construction market exhibits strong regional dynamics driven by power availability, labor markets, and established relationships:

Northern Virginia - Data Center Alley

Market Characteristics:

• World’s largest datacenter market: 1.5+ GW operational
• Extremely competitive: All major contractors present
• High labor costs: 20-30% above national average
• Specialized workforce: Decades of datacenter construction experience

Dominant Contractors:

• DPR Construction: 4.27M sq ft delivered in last 5 years, strong Equinix/PowerHouse relationships
• HITT Contracting: Local contractor with deep utility relationships, QTS partnership
• Turner Construction: Major projects including QTS Ashburn, confidential hyperscale facilities
• Holder Construction: Multiple campus projects

Competitive Dynamics:

• Established relationships critical (operator loyalty high)
• Labor market tight requiring aggressive recruiting
• Permitting expertise valuable navigating local jurisdictions
• Speed-to-market premium (land scarcity, power allocation competition)

Texas - Multi-Market Opportunity

Market Characteristics:

• Multiple datacenter hubs: Dallas-Fort Worth, Austin, San Antonio, Houston, Abilene
• ERCOT power market: Unique opportunities and challenges
• Mix of hyperscale (Meta Fort Worth) and emerging markets
• Lower costs than coastal markets

Regional Dynamics:

Dallas-Fort Worth:

• Mature market with extensive fiber connectivity
• QTS, Aligned, CyrusOne, Stream major operators
• Competitive contractor market

Austin:

• Tech hub with strong colocation demand
• Emerging hyperscale market
• Higher land/labor costs than DFW

San Antonio:

• Emerging market with large power availability
• DPR construction active (350,000 sq ft facility)
• Military presence (government datacenter opportunities)

Abilene:

• Mega-project focus: Crusoe/DPR 1.2 GW campus
• Wind power resources attractive for AI workloads
• Limited local labor (travel workforce required)

Dominant Contractors:

• DPR Construction: Fort Worth (Meta), Abilene (Crusoe), San Antonio
• JE Dunn Construction: Temple (Meta), strong Texas presence
• Turner Construction: Multiple projects across state

Advantages:

• Lower construction costs (15-25% below coastal markets)
• Available land for mega-campuses
• Business-friendly regulatory environment
• No state income tax attracting operators and workers

Arizona - Desert Hyperscale Hub

Market Characteristics:

• Phoenix mega-campus developments
• Year-round construction weather
• Water constraints driving innovation (waterless cooling)
• Renewable energy (solar) integration

Major Projects:

• Holder + EdgeCore Mesa: $1.9B, 450 MW, water-neutral
• McCarthy + Vantage Goodyear: $1.5B+, 176 MW, 5 buildings
• DPR + Meta Mesa: $1B, 2.5M sq ft, 5 buildings

Dominant Contractors:

• Holder Construction: EdgeCore Mesa ($1.9B) leadership
• McCarthy Building Companies: Vantage multi-building campus
• DPR Construction: Meta Mesa ($1B)

Specialization Required:

• Water-neutral cooling designs (closed-loop chilled water)
• Solar integration expertise
• Desert climate construction adaptations
• Evaporative cooling optimization

Advantages:

• 300+ days sunshine enabling solar power
• Available land at reasonable costs
• Year-round construction (no weather delays)
• Renewable energy resources

Challenges:

• Water scarcity requiring waterless/water-neutral designs
• Summer heat (110°F+) affecting construction productivity
• Community concerns about water usage
• Long-distance transmission for some sites

West Coast - Innovation Hub

Market Characteristics:

• Silicon Valley: High-density colocation, enterprise datacenters
• Oregon/Washington: Hyperscale campuses leveraging hydroelectric power
• High costs: Labor 30-40% above national average
• Stringent environmental regulations

Regional Dynamics:

Silicon Valley:

• Premium market with highest costs
• Colocation focus (Equinix, Digital Realty, CoreSite)
• Limited land availability
• Seismic design requirements

Oregon (Quincy, The Dalles, Hillsboro):

• Hydroelectric power (low-cost renewable)
• Vantage Frontier Quincy: $25B, 1,290 MW
• Google The Dalles: $2.4B expansion (Whiting-Turner)
• Flexential Hillsboro: 135 MW across 6 facilities

Dominant Contractors:

• DPR Construction: Strong California presence, CoreSite LA3, Meta Prineville (Oregon)
• Whiting-Turner: Google The Dalles ($2.4B)
• McCarthy: Western US focus, multiple California projects

Specialization Required:

• Seismic design expertise (California, Oregon)
• Hydroelectric power integration
• High labor costs requiring efficiency
• Environmental compliance navigation

Advantages:

• Access to tech company headquarters (design collaboration)
• Low-cost hydroelectric power (Oregon/Washington)
• Renewable energy abundant
• Skilled workforce (though expensive)

Midwest - Emerging Mega-Campus Region

Market Characteristics:

• Kansas City: Hunt Midwest Project Kestrel ($100B, 1+ GW)
• Ohio: Vantage/Turner OH1 ($2B, 192 MW), Google Fort Wayne ($2B+)
• Illinois: Clayco Microsoft Elk Grove ($450M), QTS/Mortenson Chicago
• Lower costs, available power, central connectivity

Dominant Contractors:

• JE Dunn Construction: Kansas City headquarters, #7 ENR datacenter ranking
• Turner Construction: Vantage Ohio ($2B)
• Holder Construction: Google Fort Wayne ($2B+)
• Clayco: Illinois projects including Microsoft, Equinix

Advantages:

• Lower land and construction costs (30-40% below coastal markets)
• Available utility power (less constrained than coasts)
• Central US location (low latency to both coasts)
• Strong construction workforce (union presence)

Challenges:

• Weather delays (winter construction challenges)
• Less established datacenter market (operators learning local dynamics)
• Tornado risk requiring enhanced structural design
• Lower fiber density than coastal markets (improving)

Southeast - Cable Landing & Hyperscale Edge

Market Characteristics:

• DC BLOX regional dominance: 20 projects, cable landing stations
• Atlanta mega-campuses: QTS, DC BLOX Rockdale (216 MW)
• Carolinas: Cable landing infrastructure (Myrtle Beach, Palm Coast)
• Alabama: Meta Montgomery ($1.5B), Huntsville

Dominant Contractors:

• DC BLOX (operates and develops): Vertical integration, 20 projects
• Holder Construction: Atlanta-headquartered, regional projects
• Brasfield & Gorrie: Regional contractor, Alabama presence

Specialization Required:

• Cable landing station construction (unique requirements)
• Dark fiber network integration
• Hyperscale edge nodes (smaller than traditional hyperscale)

Advantages:

• Lower costs than coastal markets
• Available power in many markets
• Subsea cable landing opportunities (East Coast)
• Business-friendly regulatory environment

Emerging Markets:

• Montgomery, Alabama: Meta $1.5B expansion
• Huntsville, Alabama: Meta operational
• Atlanta East (Rockdale): DC BLOX 216 MW, $700M
• Carolinas: Cable landing station opportunities

Future Outlook & Industry Evolution

The datacenter construction industry faces a transformational decade ahead:

Market Growth Projections

$300B+ Annual Market by 2030:

• Current $200B annual spending accelerating
• AI infrastructure driving unprecedented demand
• Hyperscaler commitments totaling $500B+ over 5 years
• Emerging markets (Midwest, Southeast) expanding rapidly

Capacity Expansion:

• 20+ GW of new capacity under construction currently
• 50+ GW planned/announced through 2030
• Individual campuses now 1-2 GW (versus historical 50-200 MW)
• Nuclear-powered datacenters adding 5-10 GW

Project Scale Evolution:

• $10B+ projects now reality (Meta Louisiana)
• $5B+ projects increasingly common
• 1+ GW campuses standard for AI workloads
• Multi-year, multi-phase mega-campuses

Nuclear Construction Capabilities

The industry must now add nuclear construction expertise:

Small Modular Reactors (SMRs):

Microsoft + Constellation Energy (Three Mile Island):

• Restarting TMI Unit 1 (835 MW)
• 20-year power purchase agreement with Microsoft
• General contractor TBD (likely major infrastructure firm)
• Nuclear-certified construction workforce required

Google SMR Investments:

• Partnership with Kairos Power
• 500 MW total capacity from multiple reactors
• First reactors operational 2030
• Construction contractors with nuclear certification

Amazon Web Services:

• Investing in SMR development
• Talen Energy Susquehanna campus (960 MW)
• Multiple reactors planned

Contractor Implications:

New Capabilities Required:

• Nuclear construction certifications (NRC oversight)
• Radiation safety protocols
• Specialized trades (nuclear piping, containment)
• Higher security clearances
• Extensive documentation and QA/QC

Potential Nuclear-Qualified Contractors:

• Bechtel: Extensive nuclear experience, large infrastructure projects
• Fluor: Nuclear power plant construction background
• Black & Veatch: Power infrastructure EPC capabilities
• Kiewit: Large infrastructure projects, power generation experience

Traditional Datacenter Contractors:

• Likely partner with nuclear-certified firms
• Joint ventures combining datacenter expertise + nuclear capabilities
• Focus on non-nuclear balance of plant (cooling, electrical distribution, datacenter building)

Timeline Impact:

• Nuclear construction adds 5-10 years to traditional datacenter timelines
• First SMR-powered datacenters operational 2030-2032
• Learning curve as industry adapts to nuclear requirements

International Expansion

US datacenter contractors increasingly pursuing international opportunities:

DPR Construction Asia:

• Managing Director Sangwoo Cho leading expansion
• Leveraging US datacenter expertise internationally
• Asian markets growing rapidly (Japan, Singapore, Australia)

Turner International:

• Global presence in 20+ countries
• Datacenter projects expanding internationally
• Partnerships with local contractors

Holder Construction:

• International project pursuit
• Focus on markets with US hyperscaler presence

Challenges:

• Different building codes and standards
• Local labor practices and unions
• Currency and payment structures
• Cultural and language barriers
• Competition from local contractors

Opportunities:

• Exporting US innovations (prefab, liquid cooling, fast-track delivery)
• Following hyperscaler customers internationally
• Higher margins in less competitive markets
• Diversification beyond US market cycles

Technology Evolution Impact

Contractors must continuously adapt to emerging technologies:

Next-Generation Cooling:

Immersion Cooling:

• Servers submerged in dielectric fluid
• Supports 100+ kW per tank
• Requires specialized construction (leak containment, fluid management)
• Contractors developing expertise (limited deployments currently)

Direct Liquid-to-Chip:

• Cold plates on every CPU/GPU
• Complex plumbing at rack level
• Precision installation critical
• Growing rapidly for AI workloads

Hybrid Cooling Zones:

• Mixed air cooling (traditional servers) and liquid cooling (AI) in same facility
• Complex infrastructure integration
• Flexibility for changing workloads

AI-Optimized Designs:

• Purpose-built AI datacenters (CoreWeave, Crusoe model)
• 300-350 kW racks becoming standard
• Higher power density electrical (3000-4000A busways)
• Simplified redundancy (N+1 versus 2N for cost/speed)

Automation & Robotics:

Construction Automation:

• Robotic concrete finishing
• Automated rebar tying
• Drone surveying and progress monitoring
• Exoskeletons for workers (heavy lifting assistance)

Prefabrication Automation:

• Automated electrical skid assembly
• Robotic welding for mechanical systems
• 3D-printed components (emerging)

Impact: 10-20% labor reduction over next decade, quality improvements, safety enhancements

Digital Construction Platforms:

BIM Evolution:

• AI-assisted design optimization
• Automated clash detection and resolution
• Generative design (AI proposing optimal layouts)
• Real-time collaboration across global teams

Construction Management Software:

• Integrated platforms (Autodesk Construction Cloud, Procore, others)
• Real-time progress tracking
• Supply chain integration and visibility
• Predictive analytics (schedule risk, cost overruns)

Contractor Advantage: Early technology adopters (DPR with 300+ VDC professionals) maintain competitive edge

Sustainability Requirements Evolution

Environmental requirements will tighten significantly:

Embodied Carbon Limits:

• Building codes incorporating embodied carbon limits
• Low-carbon concrete requirements (California, Washington leading)
• Lifecycle carbon accounting (not just operational emissions)
• Material sourcing transparency

Circular Economy:

• Design for disassembly and reuse
• Recycled/recyclable materials prioritized
• Equipment refurbishment versus replacement
• Construction waste minimization (prefab helps)

Water Neutrality:

• Zero net water consumption requirements (Arizona, other water-scarce regions)
• Closed-loop cooling systems standard
• Rainwater harvesting and greywater reuse
• Community water impact assessments

Renewable Energy:

• 100% renewable energy table stakes for hyperscale contracts
• On-site generation increasingly required (solar, wind, eventually nuclear)
• Energy storage integration (batteries, other)
• Grid interaction and load balancing

Contractor Response:

• Sustainability expertise becoming competitive requirement
• Partnerships with renewable energy developers
• Investment in low-carbon construction methods
• Transparent reporting and certification

Consolidation & Specialization Trends

Market Consolidation:

• Smaller contractors acquired by majors seeking datacenter expertise
• Private equity investment in datacenter-specialized contractors
• Joint ventures evolving into permanent partnerships

Vertical Integration:

• Some contractors developing design capabilities (design-build)
• Prefabrication facilities owned by contractors
• Equipment supplier partnerships/acquisitions

Hyper-Specialization:

• Dedicated datacenter-only contractors emerging
• Liquid cooling specialty subcontractors
• Commissioning-focused firms (critical for complex AI facilities)
• Nuclear-datacenter specialists forming

Geographic Expansion:

• National contractors opening offices in emerging markets (Alabama, Ohio, etc.)
• Regional specialists expanding footprint
• International expansion following hyperscaler customers

Risk & Opportunity Balance

Concentration Risk:

• 30-50% revenue concentration creates vulnerability if datacenter market slows
• Customer concentration (DPR’s Meta dependence)
• Geographic concentration (Northern Virginia, Texas)

Mitigation Strategies:

• Diversifying customer base (hyperscale, colocation, enterprise, government)
• Geographic diversification into emerging markets
• Adjacent markets (semiconductor fabs, battery plants, other infrastructure)

Unprecedented Opportunity:

• $300B+ annual market by 2030 (versus ~$100B in 2020)
• Multi-decade AI infrastructure buildout (not a short-term cycle)
• Recurring work as operators expand campuses
• Premium pricing for specialized expertise

Competitive Moat:

• Established relationships with hyperscalers (DPR+Meta, Turner+Microsoft)
• Specialized expertise (liquid cooling, commissioning)
• Track record (safety, quality, on-time delivery)
• Financial strength (bonding capacity for mega-projects)

Long-Term Outlook: The datacenter construction industry is undergoing permanent transformation. Contractors mastering liquid cooling, prefabrication, sustainability, and mega-project delivery will thrive. Those unable to scale, innovate, and adapt risk being left behind as the industry evolves from traditional construction to advanced technology deployment at unprecedented scale and speed.

Related Resources

• Datacenter Operators Hub - Major datacenter operators driving construction demand
• Hyperscalers Hub - AWS, Microsoft, Google, Meta datacenter strategies and construction partnerships
• Power & Utilities - Electrical infrastructure and power sourcing critical to construction
• Cooling Technology - Liquid cooling and thermal management systems contractors must install
• Mega-Projects Database - Tracking $1B+ datacenter construction projects

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Last Updated: October 16, 2025 Data sources: contractors.json (10 contractors, 250+ projects), DPR Construction entity dossier, industry publications (ENR, Construction Dive, BD+C), contractor websites and press releases