Materials, labor shortages threaten data center construction boom

Demand for data center construction remains stronger than ever, but issues around labor, supply chain and inflation could mute the pace of building in the sector, according to a Turton Bond data center market report. Through the first quarter of 2022, for example, data center construction has been on a tear, according to Dodge. Starts reached $1.4 billion during the first three months of 2022, a 29.2% increase from the first quarter of 2021. That’s double the pace for construction starts in general. But inflation, supply chain constraints and labor shortages create an unpredictable market, which may affect the data center construction sector, according to the Turton Bond report. Operators who focus on procuring key materials and equipment early, have good relationships with vendors and can secure warehouse space for storing equipment and products offsite are the ones making headway in this challenging environment, the report said.

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