Rapid data center construction: Who carries the risk?

Data center projects are big, complicated, and usually under heavy time pressure. Laura Riddeck explains how the choice of delivery model decides who carries the risk.

The delivery model determines which party is responsible for cost, schedule, and performance. A single integrated package gives the owner one responsible party, but usually at a significant price uplift and with less control. Multi-contracting gives more flexibility and control, but more responsibility for coordination. Modular construction can speed up a project, but it creates insolvency risk if the supplier fails after you have paid for equipment you have not yet received.

Owners appointing an engineering, procurement, and construction (EPC) contractor typically expect an EPC wrap: delivery for a fixed lump sum price and schedule. Contractors are increasingly reluctant to give one, given the scale of the figures and how quickly technology is evolving. Grid connection, which is outside the contractor’s control, is the critical path. If grid delays are significant, temporary power may be needed to test systems before handover.