Ryan Cos. Execs Detail Data Center Delays, Site Selection Challenges
Two senior vice presidents at Minneapolis-based Ryan Cos. told Construction Dive that data center construction faces real-world constraints even as announcements for new projects keep piling up. Eric Abrams and Michael Beadle, who lead the firm’s mission critical sector, said zoning, permitting and environmental review are now the biggest sources of schedule risk. Ryan Cos. recently estimated that delays on a Google data center project could cost the firm $5 million or more after a judge found an environmental group’s legal challenge raised valid questions about compliance with state review requirements. Beadle also said equipment demand across the industry now exceeds what electrical and mechanical supply chains can deliver, straining the “just-in-time” model contractors rely on for start-up and testing.
What It Means for Subcontractors
- Electrical and mechanical contractors with long-lead equipment relationships have leverage right now. Beadle said reliable off-site manufacturing and on-site start-up and testing labor are becoming bottlenecks, meaning subs who can commit to long-term vendor and contractor partnerships are more likely to land work.
- Cooling and mechanical trades should note the shift from air cooling to liquid cooling systems designed to cut water use, a design trend Abrams flagged as increasingly standard on newer facilities.
- Electrical subcontractors and safety consultants should prepare for higher power-density data halls, which Beadle said will require more hazard analysis and energization planning as chip technology shrinks and power loads climb.
- Labor and staffing considerations matter for site selection: Beadle noted subcontractors and suppliers are increasingly choosing projects based on commute access and local amenities for their craft workforce, a factor developers are now weighing alongside power availability and permitting outlook.
