For data center contracts, it’s all about the fine print

Core Insights - Data center construction is experiencing significant growth in the U.S., with major investments from companies like Apple and CoreWeave [2] - The complexity of data center projects arises from their unique power and utility requirements, as well as supply chain and labor challenges [4][7] - Fast-track delivery has become the norm in the industry to meet the rising demand for artificial intelligence, but it increases risks for contractors [7] Industry Trends - Contractors are facing a surge in early-stage activity despite concerns about a potential slowdown in the market [2] - Major contracts, such as Apple's $20 billion investment in Pennsylvania and CoreWeave's $6 billion facility, highlight the scale of current projects [2] - The use of engineering, procurement, and construction contracts or turnkey models simplifies ownership but places a heavier burden on contractors [5] Regulatory and Safety Considerations - Data center projects are subject to extensive regulations, including fire codes and permitting issues, complicating contract adherence [6] - The fast-paced nature of construction increases the potential for mistakes, particularly in remote locations where specialized labor is scarce [7] - Safety is a critical concern, especially when dealing with high voltage and fast-track projects, necessitating operational excellence [8]