How Procore is Revolutionizing Data Center Construction
Procore has established itself as a leader in data center construction, powering a substantial number of the world’s data centers. As the demand for hyperscale data centers grows, particularly with the rise of artificial intelligence, Procore has been at the forefront, adapting to shifts in the market and building solutions to meet evolving needs.
The artificial intelligence boom has increased the demand for hyperscalers–data centers generating massive computing power to support every aspect of the digital world. Kevin Petrill, project executive, data centers at global engineering, architecture, and construction firm Gray, shared that some hyperscalers can produce upwards of $1 million in gross revenue per minute, driving a race to build and operationalize data centers faster than ever. Boston Consulting Group estimates that $1.8 trillion in capital will be deployed by 2030 to meet this surging demand. At the same time, power constraints, supply chain issues, and skilled labor shortages make it increasingly challenging to secure the labor, equipment, and energy required to keep up with data center investments.
Recently, we brought together data center builders and owners for an Innovation Lab, where customers collaborate with our product teams on future solutions, on data center construction. We identified four ways the industry is accelerating data center development:
Mitigating Supply Chain Issues with Stockpiles
Owners are staying one step ahead of procurement challenges by stockpiling in-demand data center equipment and materials that carry extended lead times. This practice has created a new economy for storage facilities with the right climate to maintain sensitive and costly data center equipment.
More and more, owners are drawing on their available capital to stockpile materials by setting up standing orders with suppliers. It’s not uncommon for data center materials to rack up two-year lead times, making recurring orders a key tactic to maintain flexibility and avoid project delays. According to the BCG study of 15 data center builds: “bulk purchasing and centralized storage of critical equipment can shorten timelines by as much as six months.” Participants at our Innovation Lab identified future enhancements to Procore’s Materials and Asset Register, like templates for commissioning and automatic linking, to streamline long procurement lead times.
Addressing Power Constraints with Vertical Integration
Despite a high volume of capital to build data centers, power constraints continue to impede development. Data center energy needs have strained power grids around the globe, with the U.S. Department of Energy expecting data centers to consume 6.7% to 12% of U.S. electricity by 2028.
To access the power required to operate data centers, Owners are taking a multi-pronged approach — from working hand-in-hand with utilities to recommissioning nuclear plants and setting up small modular reactors (SMRs). Owners are also turning to vertical integration as a means of controlling volatility in power supply. In an effort to exercise increased control over data center power availability, owners are developing on-site fabrication and power generation capabilities. To connect all stakeholders from utilities providers to Owners to contractors, we developed a new standard in cross-company data connectability that helps shave weeks off data center construction.
Driving Efficiency with Artificial Intelligence
The proliferation and mass adoption of AI is the primary driver of increased data center demand. In fact, McKinsey estimates that around 70% of data center projects stem from AI computing needs. AI is both a driver of demand and part of the solution to build data centers more effectively. For example, Procore converts project data into insights and actions with AI-powered Copilot and, starting this year, Agents, helping maximize efficiencies and scale development with automation.
Unlocking Scale with the Prefabrication Advantage
The uniformity and modular nature of data centers makes them well-suited for prefabrication, and the industry views prefab as a critical lever for scaling data center growth. According to Teresa Tsung, vice president of project controls at Vantage Data Centers, “If you’re not thinking of prefab right now, you’re behind the game.” As prefab becomes more pervasive, builders need greater visibility into offsite work. By bringing all stakeholders together on a single platform, Procore fuels seamless collaboration between the jobsite and offsite locations.
At Procore, we’re building the future of data center construction technology together with the world’s leading owners and builders, providing a competitive edge for the next wave of growth.
Learn more about Procore for data centers here.
