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Understanding the Supply Chain in Data Center Construction

Data center supply chains are complex, but managing their interdependencies with innovative tools like Foresight can unlock improved performance.

Behind every data center construction project lies an intricate network of stakeholders and processes that must come together seamlessly to deliver these mission-critical facilities on time and within budget. This network—commonly referred to as the supply chain—includes everyone from investors and hyperscalers to contractors, manufacturers, and consultants.

However, coordinating such a vast and interconnected ecosystem is no small feat. Miscommunication and inefficiencies at any point in the supply chain can lead to missed deadlines, costly delays and fines, as well as rework, threatening the success of even the most well-planned projects. For owner-operators, who sit at the heart of this ecosystem, the stakes are particularly high. Acting as the linchpin between these diverse stakeholders, they must not only juggle diverse priorities but also ensure that all moving parts align to achieve the project goals.

Below, we’ll explore what makes the supply chain in data center construction so complex, highlight the unique challenges faced by each stakeholder, and explain how AI-enabled tools like Foresight can transform supply chain coordination.

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Stakeholders in the Data Center Supply Chain: Roles, Goals, and Challenges

The success of any data center construction project relies on the seamless collaboration of a diverse group of stakeholders, each playing a vital role in the supply chain. From providing financial backing to delivering specialized equipment and construction expertise, every participant has distinct goals and challenges that shape the project’s trajectory. Understanding these stakeholders and their interplay is crucial to addressing the complexities of the supply chain.

Investors

Investors are the financial backbone of data center projects, supplying the capital needed to transform plans into reality. Their primary goal is to see a strong return on investment, which hinges on timely delivery, efficient budget management, and minimized isk. However, these objectives can be jeopardized by delays, cost overruns, and a lack of transparency in project execution. Without clear visibility into the construction process, investors face uncertainties and risks that undermine their confidence in achieving their desired outcomes.

Hyperscalers

Hyperscalers—technology giants such as Amazon, Microsoft, Oracle and Google—are among the primary drivers of data center demand. They require extremely large, high-performance data centers built to handle the immense growth and computational demands of AI, while also being sustainable enough to meet their environmental goals. Their timelines are often aggressive, driven by the need to support rapid growth in cloud services. However, balancing these demanding requirements with the realities of construction introduces significant challenges, including navigating tight schedules and integrating the latest technologies without compromising quality. The push for cutting-edge components, such as the latest chips, often adds complexity by increasing electricity and cooling demands, which must be carefully managed throughout the project.

Original Equipment Manufacturers (OEMs)

OEMs play a pivotal role in supplying the critical infrastructure that powers data center operations, including power distribution units (PDUs), server racks, cooling equipment, and semiconductors—the computational backbone of servers, manufactured by industry leaders like NVIDIA, Intel, and AMD. These components are essential for enabling high-performance capabilities such as AI workloads and high-density computing.

However, the supply chain for these components introduces several challenges. Long lead times due to high demand as well as frequent design changes as technology evolves can create significant friction across the project lifecycle. Delays or misalignments in design specifications often lead to mismatched components or late deliveries, which can disrupt timelines and increase costs. Furthermore, the rapid pace of innovation in areas like semiconductor technology introduces the risk of obsolescence, where items ordered early in the project may no longer meet performance requirements by the time they are deployed.

General Contractors and Subcontractors

General contractors and subcontractors, including tradespeople like electricians, HVAC technicians, and cable installers, transform designs into reality. Their work is critical to the successful completion of the project, but it hinges on precise scheduling, clear communication, and seamless coordination with other stakeholders.

However, these teams face mounting challenges in today’s fast-paced construction environment. A shortage of skilled labor across the industry creates competition for experienced subcontractors, often resulting in delays or increased costs as projects vie for limited resources. 

Further complicating matters are dependencies between trades. For example, electricians may be unable to proceed until the civil contractors complete the necessary preparatory work, or HVAC installations may depend on the timely arrival of long-lead equipment. Poorly managed dependencies or gaps in communication can escalate into costly delays and on-site conflicts, undermining overall project success. Addressing these challenges requires not only precise planning but also innovative tools to streamline workflows and optimize resource allocation.

Consultants

Consultants play a pivotal role in the success of data center projects, offering expertise that spans design, planning, and construction management. Design consultants, including architectural firms, engineering design teams, and Mechanical, Electrical, and Plumbing (MEP) specialists, ensure that the facility’s layout and systems meet the operational and technical needs of hyperscalers and owner-operators while complying with relevant building standards. Their expertise drives the creation of detailed designs that align with cutting-edge technology requirements, serving as the foundation for construction.

In addition to design consultants, construction project management consultants (such as TBH) play a critical role in coordinating the complex ecosystem of a data center build. These firms provide strategic oversight, ensuring that schedules, budgets, and resources are managed effectively while maintaining alignment among stakeholders. They help bridge the gaps between design intent, equipment procurement, and on-site execution, minimizing the risk of delays and inefficiencies.

However, consultants face significant challenges, including tight timelines, evolving technological requirements, and the need to synchronize their efforts with contractors and OEMs. Misalignment between design specifications and long-lead equipment orders can lead to rework and project delays. Similarly, poor communication between consultants and contractors can create bottlenecks during construction, compounding issues and increasing costs.

Owner-Operators

Owner-operators are at the heart of the data center supply chain, managing the development, construction, and ongoing operation of facilities. They act as the linchpin, connecting the needs of hyperscalers and investors with the capabilities of contractors, suppliers, and consultants. 

However, many owner-operators lack the expertise of traditional engineering, procurement, and construction (EPC) firms, leaving them to coordinate numerous contracts and stakeholders without the benefit of proven processes. 

Furthermore, the complexities of the data center supply chain demand a level of coordination and precision that is difficult to achieve with traditional tools and approaches. Legacy tools like Primavera P6 or Microsoft Project, while powerful for scheduling, often operate as isolated “black boxes” managed by planners or schedulers, limiting collaboration and transparency. This lack of accessibility exacerbates issues such as misaligned priorities, information silos, and the dynamic nature of construction projects, creating significant challenges for owner-operators as they attempt to harmonize the efforts of diverse stakeholders. The stakes are high, as even small delays or disruptions can have cascading effects across the entire project.

A Control Tower for Supply Chain Efficiency

This is where AI-enabled tools like Foresight provide a transformative solution. Acting as a “control tower” for the supply chain, Foresight ensures that every stakeholder is aligned, informed, and equipped to navigate their responsibilities seamlessly. By integrating critical features such as task assignment, milestone tracking, and risk visualization, Foresight enables owner-operators to:

  • Prioritize Activities: Focus on the most critical tasks without relying on guesswork, thanks to tools like the Priority Matrix and Delay Recovery Plans​
  • Foster Collaboration: Keep all stakeholders on the same page through task assignment via activity cards, role-based access, and real-time updates​
  • Identify and Mitigate Risks: Use heat maps, logic quality checks, and risk recommendations to proactively address bottlenecks before they escalate​
  • Learn from Past Projects: Retain and utilize institutional knowledge to improve future performance through activity cards, activity duration forecasting, and phase performance insights​
  • Enhance Visibility and Reporting: Simplify workflows and ensure transparency with features like Gantt charts, automated reports, and granular filtering​

By providing a centralized platform that integrates these capabilities, Foresight transforms supply chain management from a source of frustration into a strategic advantage. This empowers teams to deliver data center projects on time, on budget, and with greater confidence.

Up Next: Tackling the Complexity of Data Center Supply Chains

In the next post, we will go into more detail about the complexity of data center supply chains. We’ll delve into the strain created by this complexity, and discuss how teams can adapt to these challenges, offering actionable insights and scalable solutions to drive better performance.

Understanding the Supply Chain in Data Center Construction
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