‘We ensure data centre construction projects are delivered successfully’

Andrew Robinson and Anita Lakshmipathy both work in the Data Centre team of project management consultancy Turner & Townsend. They discuss key trends in the landscape and how Turner & Townsend helps players in the sector successfully deliver their projects.

What trends and challenges are you currently seeing in the data centre construction industry?

Andy: One unique challenge we are observing is of land and supply shortages. It’s increasingly difficult to find suitable locations, and this issue is prevalent across all regions. Additionally, we are facing water restrictions which complicate the construction and operation of data centres.

There is also a noticeable skills shortage. We often have to rely on the same pool of contractors, which can lead to bottlenecks and delays. 

On the technological front, artificial intelligence is becoming a significant trend. Previously, the focus was on cloud computing to manage and store data externally. Now, AI is revolutionizing the industry by requiring more computing capacity in a smaller space, potentially making systems 5-10 times more powerful.

In terms of innovation, there is a strong push towards sustainable power sources. Data centres need to integrate clean energy solutions such as solar and wind power to become more efficient and environmentally friendly.

Moreover, the industry is exploring ways to reuse waste. Currently, about 16% of the energy used by data centres is wasted, and there is a growing interest in finding ways to repurpose this energy, contributing to a greener future for data centres.

What is Turner & Townsend’s approach to data centre construction?

Andy: Compared to other areas of construction I’m familiar with, data centre consultancy and construction is a relatively small group of people and organisations (and clients) that collectively achieve more than some of its parts alone.

At Turner & Townsend, we are no different. We’re well connected throughout Europe and the rest of the world, and through sharing ideas as well as lessons learned, we can tailor solutions to the challenges our clients face. Our core services include cost management, project management, project controls, and portfolio management. 

At the heart of our approach are toolkits and data that we have collected over the years. 

Meanwhile, every year our Data Centre practice produces the Data Centre Cost Index. This is the 8th year that we have been showcasing this information. It is a mix of a global construction cost benchmarking and a collection of insights, highlighting trends and providing forecasts.

How does Turner & Townsend ensure cost management in large-scale data centre projects?

Anita: The first step in our process is assembling the best team possible. It’s crucial to ensure a team with the right mix of experience and expertise on similar projects, incorporating both local professionals and, if necessary, global industry specialists. This diverse team approach helps us achieve optimum results in a seamless fashion.

With all stakeholders we work closely from the pre-construction stage through to the project’s closing and proper handover. For any large-scale data center project, we understand the importance of a robust cost report template. This template is continuously monitored and updated throughout the project lifecycle, with reports issued to our clients monthly.

Taking ownership and collaborating with the general contractor is relevant to develop the project schedule, highlighting key milestones. We drive and support all contract negotiation and procurement activities, ensuring that any risks are identified and mitigated promptly.

Our delivery model is always tailored to suit the client's specific needs. We understand that each project is unique, and we adapt our strategies to meet the particular requirements and goals of our clients. This flexibility and client-focused approach are central to our success in managing costs effectively.

On a separate note, how would you describe the company culture at Turner & Townsend?

Anita: Our culture is rooted in collaboration, innovation, and a commitment to professional growth. We foster an environment where employees are encouraged to share ideas and work together to solve complex challenges. We also place a strong emphasis on diversity and inclusion. There is a lot of focus on open and effective communication within the company.

About the authors: Andrew Robinson is an Associate Director at Turner & Townsend, where Anita Lakshmipathy is a Cost Management Consultant.

About Turner & Townsend

Turner & Townsend is a consultancy company specialising in programme management, project management, cost management, and consulting in the built environment. The company has over the past years been making significant strides in the data centre construction sector.

Turner & Townsend has offices around the world and is a subsidiary of CBRE.