The Squeeze: Why the Real Battle for Data Centers is Won in Construction
Article by Waleed Zafar, Director, Mission Critical @ XYZ Reality

The Squeeze: Why the Real Battle for Data Centers is Won in Construction

A few years ago, it felt like there was plenty of room to grow in the data center world – and in 2022, the market seemed to be going vertical. But that was nothing compared to the pace and pressure we’re seeing today. Markets are booming, power is scarce, and sites are fighting over any scrap of viable land. 

Now, data center development feels like a high-stakes chess match played on a board that’s shrinking fast. Everywhere you look, the same story plays out: 

  • Phoenix? Availability dropped while new capacity was snapped up the second it came online. 

  • Europe as a whole? Availability fell 25% year on year. Operators are pushed further out of city centers to dodge power constraints. 

  • Latin America? Querétaro has less than 1 MW left. Bogotá has availability – but needs massive infrastructure upgrades to make it viable. 

Power is king. Or queen. Take your pick. But without power – and without land – it’s becoming almost impossible to stand out. 

So, where does that leave us? 

Everyone’s Fighting for the Same Scarce Resources 

I’m hearing the same frustration from developers, hyperscalers, and contractors alike: 

“We’ve got pipelines worth billions. But the market’s too hot. Power is gone. Land is gone. Even the equipment lead times have exploded.” 

We’re squeezed on every front: 

  • Power availability is evaporating in established markets & land is scarce or eye-wateringly expensive. 

  • Supply chains are being asked to do more with less resources. 

  • Labor is tighter than ever, especially for specialist trades, and everyone's fighting for the same skilled labour resources. 

And all of it feeds into one stark reality: the days of hoping your project will “figure itself out” during construction are over. Today, construction is where every market constraint becomes painfully real – and where your project either stays on track or spirals into delay and cost overruns. 

The Only Place Left to Win Is In the Build Phase 

I’ve been in this business long enough to see what separates the winners from the “almosts.” It’s not flashy marketing. It’s not the biggest checkbook. 

It’s how well you execute the build. 

When power is scarce and land costs are skyrocketing, you can’t afford delays or mistakes. Because every lost month is lost revenue – and for many data center developers, that’s millions of dollars that simply vanish while the site sits incomplete, waiting on equipment, permits, or costly rework. 

And in today’s environment, successful execution often hinges on one thing: having the right person “conducting” the project. Much like an orchestra relies on its conductor to keep dozens of musicians in sync, data center builds depend on a project director who can see the whole field – procurement, design, construction, commissioning, quality, commercials, health and safety – and make sure every moving part works in harmony. It’s a tough gig, but when done well, it’s the difference between chaos and precision. 

That’s why, at XYZ, we focus so heavily on what happens once boots hit the ground. We’ve seen firsthand how real-time insights, precision layout, and proactive problem-solving can claw back precious weeks from a schedule. 

For example, on one data center project, we saved £457,000 in error and rework costs in just the first six weeks by proactively capturing and validating quality issues on-site before they could escalate. On another, we accelerated installation processes by 500%, freeing up resources to focus on the next phases sooner. 

Those gains don’t just look good on a dashboard. They’re often the difference between being first-to-market – or being left behind. 

Power. People. Precision. 

A wise colleague of mine always says: 

“Power is king. But don’t forget people.” 

I’d add one more word: precision. 

In a world where markets are squeezed, and where one month of delay can wipe out profits, precision is how you stand out. 

  • Precision in your plans 

  • Precision in your installations 

  • Precision in knowing exactly what’s happening on-site, right now 

  • Precision in your data. 

 If we’re going to keep delivering the capacity the world is demanding, we can’t leave construction to chance anymore. In this market, reactive solutions that take days or weeks – and only give you 20-40% of what’s really happening on site – just aren’t enough. The only way to win is by knowing exactly what’s happening, in real time, and acting before small issues turn into costly delays. 

Because no matter how scarce the power – and no matter how tight the sites – the only way to win is to build smarter than the guy next to you. 

Curious how we’re helping mission-critical builders stay ahead of the squeeze – and deliver flawless construction despite power, land, and labour challenges? Let’s connect. 

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