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4 Trends Shaping the Future of Data Center Construction

23 November 2024

Data centers are evolving fast, and the construction industry needs to keep up. The demands for infrastructure have turned digital. Traditional contractors are having to change the way they design and build if they want to be involved with these new facilities. Some key trends surrounding data centers to watch for are: the role of AI, the adoption of renewable energy, infrastructure upgrades to handle 5G, and how labor shortages are impacting the industry.  

1. The role of AI – smarter buildings need smarter systems.

AI has quickly made a name for itself in modern society with innovations like Chat GPT and Open AI attracting millions of users, and it’s not forgotten about data centers. According to Goldman Sachs, AI is expected to drive a 160% increase in data center power demand due to its role. Intelligent data centers (data centers that are optimized and automated using AI) centers around predictive analytics – the ability to depict large datasets and spot patterns. This technique is revolutionizing day-to-day operations as it aids decision-making and overall efficiency. For example, AI can anticipate peak usage times and adjust resources accordingly – allowing data centers to operate more smoothly and cost-effectively.

But what does this all mean for the construction industry? Data Centers are getting smarter, so they need infrastructure that is just as intelligent. The solution is employing workers skilled in AI-based systems and who understand the technology.

2. The adoption of renewable energy – sustainability is a must.

Data centers use massive amounts of energy to fuel the complex tasks of storing, processing, and managing data. In fact, AFL announced that these centers use up to 3% of the global electricity consumption today, and this figure is expected to rise as data consumption increases. One example is Iron Mountain who powers its data centers with 100% renewable energy. The company also hopes to achieve net zero and use 100% clean electricity by 2040, setting an impressive standard for others to follow.

3. Adapting infrastructure – the pressure to handle 5G.

The introduction of 5G presents both opportunities and challenges. Ericsson reported that 5G’s share of mobile data is predicted to grow to 75% in 2029, increasing from 17% at the end of 2022. With this rise, the pressure for infrastructure to keep up with faster processing speeds is high. Data centers need to have the flexibility and scalability to accommodate the increased workload when huge numbers of users are streaming or downloading high-definition content. There’s also the concern of security and privacy. Data centers need powerful processes to safeguard sensitive information.

However, the industry requires workers with specialist knowledge on how to build data centers that can handle 5G technology. Matchtech announced that this is specifically engineers, architects, planners, service delivery managers, project managers, and program managers who have fiber knowledge.

4. Labor shortages – finding skilled workers is getting tougher.

As data center projects surge in demand, it’s become obvious that there’s a serious skills gap in the industry, particularly with worker experience in AI and high-performing computing. There just isn’t enough qualified talent to go round. In the Uptime Institute Global Data Center Survey 2023, which divulges into the experiences and strategies of data center owners and operators, more than half (53%) of the respondents reported difficulty in filling open job positions. The problem comes from rapid technological developments and the increased complexity of operations. Labor shortages can slow down projects and drive-up costs so addressing this is a must for ensuring future needs are met.

To address this, contractors need to focus on both retention and recruitment. Competitive salaries, effective training programs, and mental health resources are critical for maintaining and attracting workers. A positive company culture with open communication and respect, allows employees to contribute their best ideas and effort. But how can contractors ensure they attract Gen Z workers for the future? Construction Dive declared that some of the most important things for the generation are tuition reimbursement, mental health counselling, days of service for helping out the community, and even pet insurance and bringing pets onto the jobsite. However, despite all these efforts, it’s still difficult to find the right people, so working with an expert search provider for your in-demand construction talent could help to prevent talent challenges for your organization. 

The future of data centers is changing the way we approach construction – and the pace is only accelerating. To avoid being left behind, make sure you have the best people to overcome these challenges. MKH is here to help you find the right workers with our superior engineered search.

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