Diarmaid Connolly is project director at construction consultancy Linesight
The rise in AI technology and applications like ChatGPT is creating a boom in the digital infrastructure market, but the growing demand for data centres brings with it a heightened strain on supply chains.
Recent volatility in energy and material prices has affected all industries, but has been felt particularly keenly in the data-centre sector, where the availability of key materials and components can have a significant impact on construction costs and timelines. But by taking a standardised approach to design, we can realise the potential of streamlined pipelines, bringing down associated costs and reducing delays in the process.
Beware of bespoke
Let’s start by looking at why a bespoke approach is so often the default route taken. It typically results from changing occupier needs, limited power supply and specific planning requirements leading to the design being adapted to each site and often revised during construction.
A lack of technical expertise is another key factor preventing more innovative approaches from being adopted. The Royal Institution of Chartered Surveyors’ UK Construction Monitor Q1 2023 report identifies labour shortages as a significant area of concern for the construction market. A shortage of skilled labour, particularly for specialised knowledge areas such as mechanical, electrical and plumbing trades, is affecting cost and timelines of projects.
“Although limiting the variety of designs used can remove the risks associated with bespoke features, it is important to leave room for evolution”
Standardised design can go a long way towards mitigating some of these issues; it encompasses a movement towards a repetition-based method for the use of equipment, techniques and materials, through the adoption of more consistent design features. This includes the use of Owner Furnished Contractor Installed (OFCI) procurement models, as well as offsite manufacturing or modular construction. Once defined, this approach can remove some of the complexities of projects, giving contractors the ability to plan ahead and understand how to effectively prioritise skills and materials, leading to significant cost and time savings for clients.
As with the majority of construction projects, when building data centres, time equals money. Where demand is high, the predictability of scale and speed of delivery are critical factors for developers seeking to stake a claim in the market. With timeframes squeezed, adopting standardised designs allows project teams to, in turn, standardise their schedules, making it easier to overcome challenges presented by supply chain constraints and even material shortages.
Clients may start reaping benefits from the outset, as the construction of standardised elements can start sooner. An example here could be the use of modular construction to produce prefabricated components off site as early as during the planning process.
Standardised design means that developers can enhance established supply chain relationships through repeat transactions. In the case of OFCI, determining the materials and equipment needed for a project before bringing on a contractor allows developers to potentially reduce the wait window and improve speed to market. This also gives the developer direct knowledge of, and involvement with, the supply chain. This collaborative framework affords a more streamlined process, as well as a greater commitment to meeting deadlines.
Having oversight of the design requirements also gives developers greater awareness of the skills needed to get the facility up and running. Standardised design provides a temporary solution to the technical skill shortages, which for some projects are leading to delays in delivery.
Moreover, standardisation may also play an important role in de-risking projects, through the application of predictable processes and material specifications. The standardised approach can also extend to the operation and maintenance of projects, which allows manufacturers to maintain production where otherwise peaks and troughs would occur in supply chains.
Supporting innovation
Although limiting the variety of designs used can remove the risks associated with bespoke features, it is important to leave room for evolution, in order to keep improving the quality of the UK’s data-centres offer, particularly in light of new sustainability standards.
It might seem counterintuitive, but standardised design also brings opportunities for innovation. In the case of energy use, the implementation of consistent design features allows for a more predictable performance once data centres are in operation, making it easier to analyse and benchmark energy use. This gives developers the data needed to understand the power consumption of a given project and thereby identify the opportunities to reduce consumption or to bring in sustainable supply alternatives.
While variation in local planning conditions and end-user requirements will continue to change from project to project, understanding the benefits of standardised design is key to meeting the growing need for data storage and finding ways to future-proof the sector.
