We’re all firmly aware that data centre demand has reached record levels. From capacity, connectivity issues, and the rapid pace of AI and cloud growth, immense strain is being felt in every corner of our industry.
Our traditional construction model is simply struggling to keep up. However, in our day-to-day conversations with developers and contractors we’re hearing more pressing concerns: talent availability is decreasing, whilst both lead times and variation orders are on the rise. But could off-site manufacturing be the antidote? Let’s dive in.
1. Shortage of people and skills
Our shortage of technical talent available to execute projects has an immense multiplier effect: competition for scarce skills and experience drives up labour costs, resulting in project delays and subsequently, can stretch project timelines long enough for material prices to rise.
Widening the delivery ecosystem: Off-site manufacturing expands the available supply base beyond traditional contractors, bringing in specialist modular manufacturers, packaged plant room providers, and E-House fabricators. These organisations add manufacturing capacity rather than competing for available labour and easing the pressure that eventually drives up costs.
Less reliance on site-based presence: Factory assembly consolidates mechanical, electrical, and control work into one facility, cutting the number of people and specialists required on-site at any one time. Fewer people competing for the same site slows the cost spiral and simplifies coordination between the trades that remain.
A safer, more attractive working environment: Controlled factory conditions where fixed platforms, dedicated lifting equipment and consistent supervision reduce exposure to the risks of site work, creating a safer, more predictable environment that could help and retain the skilled people the industry is short of.
2. Lengthier lead times
Every week shaved off construction is a week closer to revenue and in today’s market, speed can be the difference between capacity coming online or the entire project falling behind. Off-site manufacturing compresses the programme at three separate points.
Parallel working: Infrastructure packages are built in the factory whilst site prep and civil works continue at the same time rather than waiting for building completion before installation can start. Critical systems arrive on site as fully assembled and tested modules that are ready for connection.
Standardised, proven designs: Standardised designs remove the need to re-engineer bespoke systems for every project. Teams build on configurations already validated and optimised, cutting engineering effort and procurement time.
Pre-commissioning before delivery: Factory-built systems are inspected and tested under controlled conditions before they reach site. Site commissioning can then be dedicated to final integration and validation and not first-time testing and fault-finding – shaving further time off the route to operational readiness.
3. Variation orders
Data centres have traditionally been engineered as modular and standardised designs, but we’ve seen an advent of bespoke projects over the last few years. When we’re faced with scope changes and variation orders, we’re left scrambling to resolve redesign and project schedules.
Reducing bespoke designs: Standardisation limits the amount of project-specific redesign required, cutting off one of the main sources of variation at the root.
Issues caught in the factory, not on site: When mechanical, electrical, and control systems are integrated and tested together before leaving the factory so that defects and concerns can be identified as early as possible and before they can turn into costly, schedule-disrupting change orders discovered mid-installation.
A more predictable, controlled build: Factory production can reduce and remove many of the variables that drive variation orders on traditional sites, such as weather delays, access, labour availability etc. Fewer variables mean fewer surprises…and fewer surprises mean fewer variations.
The bottom line
Labour shortages, lead times, and variation orders are not three unrelated and isolated problems but interlock and compound each other to cause a problem which traditional construction methods are currently unable to absorb the pressure of.
Off-site manufacturing addresses all three at once by moving critical infrastructure assembly into controlled, repeatable, pre-tested factory conditions. As the data centre industry continues to scale off the charts, off-site manufacturing may just become the default approach to get planned and future data centres built.
About AIR EMEA
AIR EMEA partners with Owners, Design Teams, and Project Delivery Teams from project inception through to commissioning and operation. More than an equipment supplier, we deliver integrated infrastructure solutions through our technical expertise and strategic partnerships with leading packaged plant room and E-House manufacturers.
By engaging early in the design phase, we help develop resilient, scalable, and commercially efficient solutions, providing guidance on system design, equipment selection, technical compliance, procurement strategy and delivery planning. Our market knowledge and supply chain expertise enable clients to reduce risk and improve programme certainty.