The Complete Guide to Data Centre Construction: Best practices, Challenges, processes and definitions

Building a data centre is a highly specialised process, requiring careful planning, precise execution, and adherence to strict operational and security standards. Unlike traditional commercial buildings, data centres must be designed for maximum uptime, energy efficiency, and scalability, bringing unique challenges to their construction.

Data centre construction is unlike any other type of commercial or industrial building project. These facilities are designed to house and protect vast amounts of critical digital information, requiring highly specialised infrastructure, extreme reliability, and significant energy capacity.

Here are a few of key factors that make data centre construction unique: 

High Energy Demands 

Data centres consume enormous amounts of power to keep servers running 24/7. Unlike typical commercial buildings, which primarily use energy for lighting, HVAC, and office equipment, data centres require constant power for high-performance computing and cooling systems.  

In some cases, modern data centres projects even involve the construction of dedicated electrical substations to ensure a stable power supply.  

Energy efficiency is a major concern, with many operators investing in renewable energy sources and advanced cooling technologies to both reduce environmental impact and bring down the operational costs. 

Designed for Machines, Not People 

Unlike office buildings or warehouses, data centres are generally-speaking built primarily for servers and IT infrastructure, not human occupants.  

This means that while the facility must accommodate maintenance teams, it doesn’t require the same amenities as traditional commercial buildings, such as workspaces, cafeterias, or large communal areas.  

Instead, the focus is on optimising space for server racks, power distribution, and networking equipment while maintaining efficient airflow and cooling systems. 

Maximum Uptime and Redundancy 

Data centres must operate without interruption, as downtime can result in catastrophic financial and reputational losses for businesses.  

In fact, most of the key standards surrounding data centre construction such as the Uptime Institute Tier Standard, exist to ensure each data centre is resilient and reliable. 

To prevent outages, these facilities are designed with redundant power supplies, backup generators, and uninterruptible power supply (UPS) systems.  

Additionally, multiple internet connections and fibre-optic redundancies ensure continuous data flow, even in the event of a network failure. 

Security and Risk Mitigation 

Because data centres store sensitive digital information, security is a top priority.  

These buildings require physical security measures, including biometric access controls, surveillance systems, and reinforced structures to withstand natural disasters. 

Additionally, fire suppression systems and advanced cooling technologies are essential to protect equipment from damage. 

Cooling and Climate Control 

Servers generate a substantial amount of heat, and without efficient cooling, they can quickly begin to overheat and fail.  

Data centres incorporate specialised cooling systems, such as liquid cooling, evaporative cooling, or AI-powered climate control, to maintain optimal operating conditions.  

The design of the facility, including raised floors, hot aisle/cold aisle configurations, and precision air conditioning, is carefully planned to enhance airflow and prevent overheating. 

Scalability and Future-Proofing 

With technology evolving rapidly, data centres must be built with scalability in mind.  

Whether expanding server capacity, integrating new cooling technologies, or adapting to emerging AI and cloud computing demands, modern data centres must be flexible enough to accommodate future advancements.  

This has led to the rise of many types of data centre designs, such as modular and hyperscale designs which allow for rapid deployment and cost-effective expansion. 

Building a data centre is a complex, multi-phase process that requires strategic planning, precise engineering, and strict adherence to regulatory standards.  

Each stage plays a critical role in ensuring the facility meets performance, security, and scalability requirements. Below is an overview of the key phases involved in data centre construction. 

1. Planning and Site Selection 

The first step in any data centre construction project is to define the facility’s purpose, capacity, and infrastructure needs. This involves: 

• Assessing current and future data storage and processing demands 
• Determining scalability requirements for long-term growth 
• Selecting an optimal geographical location (considering power availability, climate, and proximity to end-users) 
• Budgeting for construction, equipment, and operational costs 

2. Data centre Design and Engineering 

Once the project scope is defined, the next step is to design the facility’s infrastructure to align with industry standards and best practices. This includes: 

• Power distribution planning – Ensuring redundancy through backup generators and UPS systems 
• Cooling and HVAC solutions – Implementing energy-efficient cooling systems to maintain server performance 
• Security and access control – Designing physical and cyber security protocols to prevent unauthorised access 
• Sustainability considerations – Integrating renewable energy sources, waste heat recovery, and water conservation systems 

Today, data centres are often designed to meet specific tier classifications (such as Uptime Institute’s Tier I-IV standards) that define levels of reliability and fault tolerance. 

3. Regulatory Compliance and Permitting 

Before construction begins, the project must comply with local, national, and industry-specific regulations. Key considerations include: 

• Building codes and zoning laws 
• Environmental impact assessments (such as energy use and carbon footprint) 
• Data security and compliance (such as GDPR, HIPAA, or industry-specific certifications) 

Regulatory adherence ensures that the facility operates legally and meets the required safety, efficiency, and reliability standards. 

4. Procurement and Pre-Construction 

Once the design is finalised and approvals are in place, procurement of critical infrastructure begins. This stage involves: 

• Ordering servers, network hardware, and storage systems 
• Sourcing power distribution units (PDUs) and backup generators 
• Acquiring HVAC and cooling systems 
• Preparing for modular component delivery (if using a modular data centre design) 

This phase also includes site preparation, ensuring that the land is graded, foundations are laid, and structural elements are ready for installation. 

5. Construction and Infrastructure Installation 

With all materials on-site, the physical construction of the data centre begins. This includes: 

• Building the facility shell – Constructing the structure to house IT and cooling equipment 
• Installing power and cooling systems – Setting up electrical grids, backup generators, and HVAC systems 
• Implementing security infrastructure – Deploying biometric access, surveillance systems, and cybersecurity frameworks 

For modular data centres, prefabricated components can be assembled on-site, significantly reducing construction time compared to traditional builds. 

6. Network Setup and Testing 

A data centre is only as effective as its network infrastructure. This stage ensures the seamless integration of: 

• Fibre-optic and high-speed connectivity 
• Server racks and cabling management 
• Firewall, cybersecurity, and redundancy systems 

Extensive testing and validation are conducted to guarantee optimal performance, including load testing, failover simulations, and power outage drills. 

7. Final Commissioning and Go-Live 

Before a data centre becomes operational, final checks and certifications are required. This involves: 

• System integration and full-capacity stress testing 
• Ensuring redundancy and failover mechanisms are functional 
• Compliance audits to confirm industry and regulatory adherence 

Once testing is complete, the facility can be handed over to operations teams, and data migration or service deployment can begin. 

Data centre construction involves a variety of challenges. From technical complexities to logistical issues and regulatory compliance, these challenges must be carefully managed to ensure a successful build. 

1. Technical Challenges 

• Energy Efficiency: Data centres consume a lot of power. Finding ways to reduce energy usage through renewable energy sources (like solar or wind) and energy-efficient technologies is critical, though costly. 
• Cooling Systems: Modern data centres require advanced cooling to manage heat generated by high-performance servers. Traditional air cooling isn’t always enough, leading to the adoption of systems like liquid or immersion cooling, which require significant investment. 
• Cybersecurity: Protecting sensitive data is a top priority. Data centres must implement physical security (e.g., biometric access) and digital security (e.g., encryption, firewalls) to defend against both physical and cyber threats. 

2. Logistical Challenges 

• Site Selection: Choosing the right location is essential. Factors like proximity to power sources, internet exchange points, and climate (for cooling) must be considered. The site also needs to meet zoning regulations and allow for future expansion. 
• Supply Chain Issues: Data centres rely on specialised equipment and materials. Supply chain disruptions can cause delays and increase costs, making flexible procurement strategies crucial. 

3. Regulatory and Compliance Challenges 

• Data centres must comply with local, national, and international regulations, such as Uptime Institute’s Tier standards and ISO 27001. Meeting these standards ensures performance, reliability, and data protection, but adds complexity and cost to the process. 

4. Environmental Impact 

• Data centres need to consider their environmental footprint. In Australia, NABERS’ national rating evaluates the environmental performance of data centres. Sustainable building practices and energy-efficient systems help minimise these impacts but can require additional investment.  

To overcome the challenges of data centre construction and ensure a smooth, efficient process, it's essential to follow industry best practices.  

Access Coins is an all-in-one ERP system designed specifically for the construction industry. It helps professionals and specialty contractors manage every part of their business, providing full control over the construction lifecycle.  

With its comprehensive modules, Access Coins streamlines project management, resource allocation, budgeting, and compliance, ensuring efficiency and accuracy across all stages of construction. 

Deploying modern ERP software, data centre construction teams can streamline workflows, reduce risks, and optimize performance in a number of ways: 

Thorough Planning and Design:  

Start with clear objectives, accurate assessments of energy and cooling needs, and a well-defined budget.  

Access Coins can help manage this process by offering comprehensive tools for project planning, budgeting, and resource allocation. 

Effective Project Management:  

Ensure tight coordination between teams, contractors, and timelines. Access Coins provides real-time collaboration and project management tools, keeping teams aligned and enabling better decision-making. 

Regulatory Compliance: 

Stay ahead of local, national, and international regulations. Access Coins simplifies compliance tracking, ensuring that all necessary standards and certifications are met without delays. 

Ongoing Security and Risk Management:  

Implement robust cybersecurity measures and risk management strategies.  

With Access Coins, you can integrate risk management practices into your workflows, maintaining secure and resilient data centres. 

Access Coins supports data centre construction by streamlining project management and optimizing resource usage, helping you meet the evolving demands of modern infrastructure while staying within budget and regulatory requirements. 

Want to learn more about what Access Coins can do for your construction business?