Data Center Construction: Why Data-Driven Owners Demand a New Era of Granular Construction Tracking
By Alec Thomson, CEO, Riskcast
The construction landscape is experiencing an unprecedented shift in capital allocation. Driven by the rapid expansion of cloud computing, artificial intelligence, and global digital infrastructure, data center construction has grown from a niche into a major driver of commercial construction. Industry giants like Amazon Web Services (AWS), Google, and Meta are leading this charge, pouring historic amounts of capital into physical infrastructure.
These and other tech giants collectively invest hundreds of billions of dollars annually in massive data center campuses. For general contractors and subcontractors, this influx of capital represents an enormous pipeline of opportunity. However, stepping onto a data center jobsite funded by a tech giant involves a fundamentally different set of operational rules than a standard commercial build.
Companies like Amazon, Meta, and Google operate on a different wavelength than traditional real estate developers. For them, data isn’t just a tool they use; it’s the product they sell and the language they speak. When they build a data center, they don’t see a traditional construction site; they see a physical extension of their digital network. Not surprisingly, they expect the level of live data and granular tracking from their general contractors that they get from their own operations. To capture a share of this market, contractors need to adapt to a client who views construction through a digital-first lens.
The New Standard: Granular Reporting in Practice
To meet these owner expectations, general contractors and their trade partners must transition from high-level summaries to granular reporting. In a standard commercial development, a weekly update noting that a building phase is “on schedule” might suffice. Tech owners, however, want the detail and require a breakdown of the daily inputs that drive that schedule. They expect field metrics like daily installation rates, real-time workforce counts, and on-site coordination for key components. This visibility provides them with direct insight into potential bottlenecks before they have compounded into major delays.
For contractors, adapting to this granular data requirement means changing how they track field operations; for many, this starts with the distinction between how work progress and labor productivity are measured.
The Core Engine: Why MEP Trades are Shifting from Progress to Productivity
Because the mechanical, electrical, and plumbing (MEP) infrastructure represents up to 70% of a data center’s total value, these trades naturally carry the heaviest reporting burden. Electrical rooms, substation connections, and complex chiller plants sit directly on the critical path to completion. If these systems fall behind, the entire deployment stalls. Consequently, tech owners are not satisfied with subjective estimates like ‘the electrical room is roughly 60% complete’ and instead require objective data. This means moving to productivity tracking to monitor the direct velocity of field operations and ensure that hours burned translate into installed assets per schedule.
Translating the Field into Data: The Role of EVM for complex data center projects
Earned Value Management (EVM) is a practical tool for aligning field operations with owner expectations. Instead of relying on a superintendent’s estimate, EVM integrates objective measurements for schedule, cost, and physical work. EVM relies on two primary metrics:
- Cost Performance Index (CPI): Are we earning more or less value than the actual dollars we are burning on labor?
- Schedule Performance Index (SPI): Is our physical installation pace matching our baseline project plan?
An example of progress vs. EVM tracking is:
[Traditional Progress] → “We’ve hung 2,000 linear feet of conduit.” (Vague)
[EVM Productivity] → “We are averaging 45 LF per man-hour vs. a target of 50.” (Predictive)
When an owner like AWS, Meta, or Google requests granular reporting, they look for changes in these indices and use EVM as an early warning system. An unnoticed drop in productivity that can’t be overcome could delay a data center coming online.
Conversely, catching a productivity drop gives the general contractor (GC) and trade partners the best chance to address the issue before it impacts a milestone. Unlike delays to owners in traditional real estate, delays in data center operations could dramatically affect companies competing aggressively to lead AI market share with expanded computing power and the billions of dollars being invested.
Contractors are Healthier: EVM Tracking Improves Operations
For trade contractors, once construction has begun, labor productivity often represents their greatest risk. EVM tracking provides visibility and metrics you can use to improve operations and increase profitability in at least three direct ways.
First, as previously noted, it provides an early warning of issues that require attention. That might mean adjusting crews or crew size, work hours, etc., ultimately protecting a project’s margin. Second, it provides a contractor a better way to forecast cost-to-complete their work in progress, helping prevent write downs (or ups) and ensuring a smoother cash curve. And finally, with accurate EVM, contractors can responsibly estimate, bid, and win new work.
Effects on the Larger Industry: Moving Beyond Data Centers
Whether managing a major airport expansion, a clean-energy facility, or a multi-use transit hub, contractors are adopting data-driven risk management strategies similar to those used in the tech sector. It is good for business. Similarly, commercial developers are recognizing that traditional progress tracking can create a false sense of security, masking issues until they impact delivery.
The traditional monthly progress report, often a static PDF compiled weeks after field events, will gradually become less acceptable to owners. Over time, the industry is likely to adopt regular dashboard updates and digital model management as standard requirements for major construction investments.
Alec Thomson brings more than 25 years of construction industry experience. With degrees in Civil Engineering and Architecture, he began his career as a field engineer before moving into construction-related sales and later serving on Skanska USA’s corporate strategy team. In 2018, Alec left Skanska alongside a colleague to pursue his passion for helping construction teams solve jobsite challenges through better technology and more efficient workflows. As Co-Founder and CEO of Riskcast, Alec leads the company’s vision, growth strategy, and industry partnerships, focusing on delivering meaningful solutions for self-perform contractors.