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—  10 min read

The Important Role of Data Centres in Construction

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Last Updated Mar 11, 2025

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Last Updated Mar 11, 2025

Interior view of servers inside a data center.

From initial design and project management to completion, data plays an ever more significant role in the construction industry. As the relationship between data and tech – including new AI tools – grows, architects, subcontractors, and other stakeholders are increasingly able to work together seamlessly on projects of all sizes and complexity. 

Table of contents

What is a Data Centre?

A data centre is a physical facility used to house computer systems and related components, such as telecommunications and storage systems. Data centres are designed to store, manage, and process large amounts of data. They provide the infrastructure required for running servers, databases, applications, and other essential systems. Data centres can vary in size and complexity, from small server rooms to large-scale, multi-building facilities that host cloud services and run major operations.

Key Components of a Data Centre

  • Servers: These are powerful computers that store and process data.
  • Storage: This includes devices used to store data, like hard drives, SSDs, and tape storage.
  • Networking Equipment: This encompasses switches, routers, and other hardware that manage the flow of data between systems.
  • Cooling Systems: Data centres generate a lot of heat, so specialised cooling systems are needed to keep everything at the right temperature.
  • Power Supply: A reliable power source allows the data centre to remain operational, even during power outages.
  • Security: Physical and cyber security measures protect the data from unauthorised access – this includes surveillance, firewalls, and encryption.

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Data Centres: The Evolution

The evolution of data centres reflects the increasing demand for faster, more efficient, and scalable solutions in a world that’s becoming increasingly reliant on data. The future promises further innovation as new technologies, such as advanced AI systems, reshape the landscape. Let’s go back to the beginning and chart how data centres have developed.

1950s–1970s: Mainframes and Simple Facilities

In the early days of computing, computers were large mainframes, used primarily by governments and large corporations. Data centres were simple, often just rooms filled with these bulky machines.

1980s–1990s: LANs and Client-Server Model

During the 1980s and 1990s, businesses started moving away from centralised mainframes to decentralised client-server architectures. This change led to the rise of more sophisticated data centres, with the introduction of local area networks (LANs) and more standardised server setups.

2000s: Increased Efficiency and Scalability

The 2000s saw a massive shift with the advent of virtualisation, which allowed businesses to run multiple virtual machines on a single physical server. This innovation significantly improved resource utilisation, reduced costs, and allowed businesses to scale their operations without needing to physically expand their data centres.

2010s–Present: Massive, Distributed, and Efficient

With the explosive growth of the internet, big data, and  IoT (Internet of Things), there was an increased demand for larger, more powerful data centres. This led to the rise of hyper-scale data centres, which are extremely large and designed to support vast amounts of data.

Types of Data Centres and Their Differences: An Overview

The type of data centre an organisation chooses depends on its specific needs regarding control, scalability, cost, and infrastructure requirements. Below are the key types of data centres:

  • Enterprise Data Centres: These are owned and operated by a single organisation to support its internal IT infrastructure.
  • Colocation Data Centres (Colos): These data centres are third-party facilities, where organisations can rent space to house their servers and other IT equipment.
  • Cloud Data Centres: These are data centres used by cloud service providers to deliver cloud computing services such as storage, computing power, and networking.
  • Hyperscale Data Centres: These are large-scale data centres designed to efficiently run applications that require massive computing power, typically used by tech giants.
  • Edge Data Centres: These are small-scale data centres located closer to the end-users, typically at the ‘edge’ of the network.
  • Modular Data Centres: This type of data centre uses modular and prefabricated components to build its infrastructure.
  • Private Cloud Data Centres: This type of data centre supports a private cloud infrastructure, where the hardware and software are dedicated to a single organisation.
  • Public Cloud Data Centres: These data centres are part of the infrastructure used by public cloud service providers (such as AWS, Microsoft Azure, or Google Cloud).

Key Differences

While the different types of data centres share many similarities, there are several key differences:

  • Ownership & Control: Enterprise and private cloud data centres offer more control over security and infrastructure, while colocation, cloud, and public cloud data centres typically offer shared resources and less control.
  • Scalability: Hyperscale, cloud, and modular data centres are more scalable, whereas enterprise and colocation centres may have limitations.
  • Cost: Cloud and colocation data centres are more cost-effective for businesses that do not want to invest heavily in infrastructure.
  • Purpose: Edge data centres focus on reducing latency for end-users, while hyperscale data centres are geared for massive, high-demand applications.

Data Centre Architecture

Data centre architecture refers to the design and structure of data centres that cater to today’s digital demands, emphasising efficiency, flexibility, scalability, energy efficiency, and automation. Driven by trends like virtualisation, cloud computing, and automation, key features of data centre architecture include:

  • Scalable, flexible, prefabricated modular design
  • High density and rack-based systems
  • Energy-efficient systems and power distribution
  • High availability with multiple layers of redundancy
  • Software-Defined Infrastructure (SDI)
  • Cloud integration to support virtualised environments

What is Virtualisation?

Virtualisation is a transformative technology that improves hardware use, reduces costs, and increases operational efficiency, enabling organisations to meet the growing demands of digitial transformation.

Key Benefits of Virtualisation in Data Centres:

  • Increased Efficiency: Virtualisation allows better use of hardware resources by running multiple virtual machines or containers on a single physical machine.
  • Cost Savings: It reduces the need for physical hardware, cuts energy consumption, and decreases operational overhead.
  • Faster Provisioning: New virtual servers and applications can be provisioned quickly, enabling more agile and responsive IT operations.
  • Better Disaster Recovery: Virtualised environments allow for easier backup and recovery, as virtual machines can be moved between data centres or recovered more rapidly.
  • Improved Flexibility and Scalability: Virtualisation supports dynamic scaling, enabling organisations to scale resources up or down depending on demand.

Benefits of Data Centres in Construction

Data centres provide the infrastructure necessary for the technologies that enhance efficiency, collaboration, safety, and sustainability in the construction industry. They support everything from project management to real-time data analytics, making them indispensable in today's digital-first construction environment. Data centres benefit the construction industry in several key areas:

Project Management & Collaboration

  • Cloud-Based Tools: Data centres support cloud-based project management and collaboration tools . These platforms allow construction teams to share documents, drawings, and updates in real-time, enabling better communication across multiple sites. Secure document storage and access help prevent loss and guarantee that all stakeholders can see the most up-to-date information.

Design and Simulation

  • Building Information Modelling (BIM): Data centres store and process significant amounts of data related to Building Information Modelling (BIM). This technology allows architects, engineers, and designers to create digital 3D models of buildings, which help with planning, design, and visualising how structures will look and function. Data centres also support powerful simulation tools, used for things like energy efficiency modelling, structural analysis, and environmental impact assessments.

Supply Chain Management

  • Inventory and Logistics: Data centres enable the management of construction materials, equipment, and logistics through specialised software. By hosting these applications in data centres, construction companies can optimise their supply chains, offering timely deliveries and reducing delays caused by material shortages.

Real-Time Monitoring and IoT

  • Construction Site Monitoring: Data centres process and analyse data from IoT devices installed on construction sites, such as drones, sensors, and cameras. These devices monitor everything from equipment usage to worker safety and environmental conditions. Real-time data can help with quick decision-making and improving the overall efficiency of a construction site.

Data Analytics for Project Insights

  • Predictive Analytics: Data centres are key to running advanced analytics on construction projects. By processing large datasets from past projects, IoT sensors, and real-time project data, companies can make predictions about project timelines, costs, and risks. Analysing historical data can also enable construction companies to identify patterns that help mitigate risks, such as cost overruns, schedule delays, or safety hazards.

Sustainability and Energy Management

  • Energy Efficiency: Data centres contribute to sustainability efforts by hosting energy-management systems that monitor and control the energy use of construction sites. Data collected from sensors and other devices can be used to optimise energy consumption, reducing the carbon footprint of construction operations.

Virtual Reality (VR) & Augmented Reality (AR)

  • Construction Visualisation: Data centres support the processing power needed for VR and AR systems, which help construction teams visualise complex designs and layouts. VR/AR can be used for virtual walkthroughs of buildings, giving clients and stakeholders a more immersive experience of the proposed design before it’s physically built.

Security Management and Operational Efficiency for Data Centres

In today’s data centres, security management and operational efficiency are essential to ensure data protection, high availability, and cost-effectiveness. A well-secured and efficiently operated data centre  lets businesses maintain optimal performance while mitigating risks, reducing costs, and remaining compliant with regulatory requirements.

Security management includes processes, technologies, and practices to protect data, hardware, and other critical assets in a data centre from threats like cyberattacks, unauthorised access, natural disasters, and physical security breaches. Security management includes:

  • Network security
  • Data security
  • Environmental security
  • Compliance with regulations

Operational efficiency in data centres refers to optimising resources, energy usage, and processes to maximise performance and reduce costs. Efficient operations can improve the overall effectiveness of the facility and provide businesses with a competitive advantage by minimising downtime, improving resource utilisation, and reducing environmental impact. Operational efficiency includes:

  • Energy efficiency
  • Resource optimisation
  • Capacity planning and scalability
  • Cost efficiency

Sustainability and the Future of Green Data Centres

As the demand for data continues to skyrocket and technology advances, data centres are facing increasing scrutiny regarding their environmental impact, particularly their energy and water usage. Green data centres aim to address these concerns by implementing sustainable practices that reduce energy consumption, lower carbon emissions, and minimise their environmental footprint.

What are Green Data Centres?

Green data centres are designed and operated to reduce environmental impact while maintaining high efficiency and reliability. They focus on sustainability through a variety of strategies, including energy efficiency, renewable energy use, effective cooling, and waste reduction.

Key features of green data centres include:

  • Energy efficiency: Energy consumption is one of the largest operational costs for data centres and can impact the environment, making energy efficiency central to a green data centre’s design.
  • Renewable Energy: Green data centres are increasingly shifting towards renewable energy sources to power their operations. This helps reduce their reliance on fossil fuels and contributes to a lower carbon footprint.
  • Cooling Innovations: Cooling is one of the most energy-intensive processes in a data centre. Traditional air-conditioning systems often consume large amounts of electricity and emit a high amount of carbon and other greenhouse gases. Green data centres adopt more sustainable cooling technologies to reduce energy usage, emissions, and water consumption.
  • Waste Reduction and Recycling: Data centres generate electronic waste (e-waste), which can have a significant environmental impact. Green data centres focus on reducing e-waste by reusing and recycling materials.
  • Water Conservation: Water usage is another major concern for data centres, especially in regions where water scarcity is an issue. Green data centres use innovative methods to reduce water consumption.

Data centres offer significant benefits to the construction industry by enabling more efficient project management, improving design accuracy, and enhancing collaboration across teams.

By leveraging data storage, processing power, and real-time analytics, construction professionals can access critical information quickly, optimise workflows, and make informed decisions that lead to cost savings and better resource management.

As construction continues to embrace digital transformation, these centres will retain a pivotal role in driving innovation, improving sustainability, and ensuring the successful delivery of complex construction projects.

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Written by

Samantha Nemeny

Sam—Samantha if she’s feeling particularly academic—has spent a decade in content marketing, with eight years focused on Australia’s construction industry. She has a knack for making complex ideas easy to understand, turning industry jargon into clear, engaging stories. With a background in SEO and marketing, she’s spent the past three years at Procore, helping industry professionals navigate the world of construction with content that’s both insightful and easy to digest.

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