Why Data Center Projects Take Years to Come Online

If you have seen the buildings housing data centers, you may be wondering why the timelines from data center planning to commissioning take years while similarly sized warehouses require weeks or a few months to construct. We explore some specific reasons why setting up a data center can stretch several years before the facility comes online. 

Planning and designing a data center takes time. Several considerations, such as projected power capacity, resiliency targets, as well as growth plans require time to work through before actual construction can begin once a site has been selected. Site selection is in itself another complex undertaking because many variables like power availability, transportation access, zoning, and man-made or natural risks need to first be weighed. 

Obtaining the required permits is another hurdle that data center projects must navigate. Local opposition and limited water or power in the area can complicate the permitting process and delay the project. In jurisdictions where the permitting authorities don’t have sufficient experience in handling data center projects, the permitting process can take even longer. 

Data center commissioning timelines can also be affected by grid interconnection complexities or challenges. Utilities often have to upgrade power infrastructure in order to accommodate the high demand that a data center will impose on the grid, and such upgrades take varying amounts of time. 

This is why many projects have had to consider onsite power generation to ensure facilities come online according to schedule and once the grid interconnection is completed, the onsite generation system serves as a backup power source. 

Procuring and commissioning the different pieces of equipment like servers, networking, storage and other such needed equipment affects how quickly a project can be commissioned. Supply chain bottlenecks, such as long lead times from ordering equipment to the time it is delivered lengthens completion timelines. 

This is further complicated when the delivery of some component is delayed due to issues like shipping disruptions. That missing component could hold up the installation and testing of other components, thereby extending the completion timelines. 

Several measures can be taken to ensure projects are completed according to schedule. These include repurposing existing buildings, choosing simple designs that can be replicated, selecting modular construction approaches and opting for permanent onsite power sources rather than waiting to be connected to the area grid. 

Each project is different, so developers need to carefully assess the specific conditions existing and make decisions that will deliver the completed projects quickly. For businesses like GlobalTech Corp. (OTC: GLTK) that leverage AI in their offerings, the headaches of setting up and running data centers don’t exist since they use existing AI infrastructure to bring innovative products to their target clients. 

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