Feature
Data centre construction:
Building resilience in a competitive market
By Sean Cole, our global high-tech sector lead
High-tech is booming around the world, with hot spots in USA, India, Thailand, Malaysia and Europe. The demand for data centres is increasing exponentially, fuelled by the growth of AI, which shows no signs of slowing. So too is the challenge of finding the people needed to build them. Labour shortages and competition for specialised skills present an almost universal problem for high-tech construction leading to project delays and increasing costs.
Sean Cole Senior director, USA Currie & Brown
Feature
Data centre construction:
Building resilience in a competitive market
By Sean Cole, our global high-tech sector lead
High-tech is booming around the world, with hot spots in USA, India, Thailand, Malaysia and Europe. The demand for data centres is increasing exponentially, fuelled by the growth of AI, which shows no signs of slowing. So too is the challenge of finding the people needed to build them. Labour shortages and competition for specialised skills present an almost universal problem for high-tech construction leading to project delays and increasing costs.
Sean Cole Senior director, USA Currie & Brown
So, what can high-tech clients do? How do you build in resilience in a highly competitive, fast-moving, talent-scarce global economy?
Plan. Plan early, plan thoroughly.
Take time to fully understand the labour market and supply chain dynamics in the local area and do this as early as possible. Integrate this into your plan. This is particularly important when moving into a new market for the first time.
Plan. Plan early, plan thoroughly.
Take time to fully understand the labour market and supply chain dynamics in the local area and do this as early as possible. Integrate this into your plan. This is particularly important when moving into a new market for the first time.
Seek out transferable skills.
Many construction projects will require similar and transferable skills and experience to those required in high-tech, for example, large industrial projects; hospitals; healthcare and pharmaceutical builds. Contractors and skilled tradespeople working in these sectors may have greater availability and may be open to taking on a high-tech project.
Become a client of choice in highly competitive areas.
Contractors in high demand areas can have a full order book even several years out. To attract and retain the partners and suppliers you need it’s important to plan carefully to build excitement around your programme:
- Ensure your contracts are fair and in line with local expectations.
- Consider fair allocation of risk across the supply chain.
- Approach suppliers carefully and early, considering what will attract them to your project and showing a collaborative approach.
- Agree up-front the processes, procedures and ways of working with the whole project team to ensure the project runs smoothly.
Combining global expertise with on-the-ground local insight can bridge the gap.
Newer markets present additional challenges as clients must navigate different ways of doing business; new supply chains; foreign permit, cultural differences and regulatory requirements. Engage with partners that understand the local market to provide an independent assessment of the strengths, weaknesses and working customs.
A hybrid approach can bring success.
Where there is a shortage of local experienced labour, pair global teams with local partners. This can help to build a skilled pool of labour in the local market while providing the global team with valuable experience and oversight.