Today’s data center landscape is being shaped by forces far beyond the construction site. Geopolitical instability, supply chain disruption, skilled labor shortages, and unprecedented demand driven by AI and cloud computing are all reshaping how facilities are designed and delivered..
While speed-to-market remains critical, building quickly is now intrinsically tied to the ability to deliver projects consistently and predictably despite growing uncertainty.. For Daniel Mendez Quintero, global head of data centers at Hilti, the key lies in rethinking traditional construction models by embedding supply chain considerations earlier in the design process and adopting more standardized approaches to delivery..
In a recent DCD>Talks episode, Quintero discusses how data center operators can build more resilient construction strategies amid accelerating demand and a global market that is growing increasingly unpredictable.. Global pressures. According to Quintero, the industry is facing three major challenges, all driven by forces outside the data center itself..
The first is demand. AI and hyperscale expansion continue to fuel an relentless wave of new projects, making future requirements increasingly difficult to predict.. – Getty Images. “We see announcements every day of new data centers being built everywhere,” he says. “But because of this surge in the pipeline, timelines and priorities constantly change, creating pressure across the entire system.”.
The second challenge is supply. Materials, logistics, and skilled labor all remain constrained, with geopolitical tensions and trade disruptions adding further complexity.. “Many of these constraints are driven by external factors,” explains Quintero. “Capacity isn’t balanced across different regions, and issues like tariffs and global trade continue to create uncertainty.”.
Finally comes execution. Even when the right materials are secured, projects can still suffer delays caused by design changes, coordination issues, rework, and onsite productivity challenges.. “When you combine internal complexity with all this external volatility,” continues Quintero. “Uncertainty becomes the new norm for the industry.”.
Designing for predictability. Rather than accepting uncertainty as unavoidable, Quintero believes the industry should focus on designing in predictability during the early stages of project development. Many construction risks, he argues, are introduced long before work begins on site:. “If you don’t think about constructability, material availability, or installation productivity early enough, you’re building risk into the project before construction even starts.”.
Traditional project sequencing – designing first, procuring later, then building – simply won’t meet the mark in today’s data center market. Instead, Quintero advocates integrating engineering and procurement from the outset.. “The fastest data centers will be the ones that remove uncertainty before construction begins,” he states..
A new construction model. Achieving this level of predictability starts with bringing engineering expertise into the design process from the outset. Design for manufacturing and assembly (DFMA) – an engineering approach that allows more standardized, pre-engineered solutions to be developed before work reaches site – is quickly becoming a key enabler.. “We increasingly see DFMA becoming standard practice because it reduces project variability and improves constructability by moving more work into controlled environments,” explains Quintero..
DFMA also addresses two significant constraints in tandem: supply chain uncertainty and skilled labor shortages. Quintero believes collaboration also needs to evolve.. Rather than treating suppliers as transactional vendors, operators should build closer relationships with a smaller number of strategic partners that can support projects from design through execution..
These partners can contribute engineering expertise and provide greater visibility into material availability and potential constraints. For Quintero, driving productivity is equally important.. “We need to think about how we install faster, safer and with fewer mistakes,” he says..
“Greater transparency across materials, workflows, and project progress also enables teams to make better decisions and respond more effectively when challenges arise.”. Ultimately, the goal is to move away from reactively managing supply chains and towards engineering projects for predictable performance..
Speed via standardization. Many global operators are building essentially the same facilities across multiple regions, making standardization increasingly valuable.. “If every project is treated as completely unique, you’re starting from scratch every time,” says Quintero. “That’s where variability, and ultimately risk, comes from.”.
DFMA helps limit this variability by standardizing repeatable elements and shifting more construction into controlled manufacturing environments. Although this requires more planning upfront, it reduces rework, coordination issues, and installation challenges later in the project..
Even with optimized designs, however, execution remains critical. Many delays stem not just from material shortages but from inefficient installation processes.. “Improving productivity isn’t simply about adding more people,” explains Quintero. “It’s about simplifying execution, making it more repeatable, consistent, and less dependent on variability.”.
Quintero believes suppliers are becoming increasingly integrated into the overall delivery process rather than simply providing products. This shift is encouraging operators to consolidate their supply chains.. “Every additional interface between suppliers creates complexity,” he says..
Working with fewer strategic partners reduces coordination and minimizes handovers to limit the number of potential failure points across a project.. If every project is treated as completely unique, you’re starting from scratch every time. That’s where variability, and ultimately risk, comes from Daniel Mendez Quintero.
At Hilti, Quintero explains how engineered solutions allow teams to accurately plan when and where materials will be required. This means that rather than reacting to supply down the line, much of the associated risk has already been designed out from the start.. Building for certainty.
For Quintero, three distinct priorities will define successful data center construction. The first is integrating engineering and supply chain thinking into the earliest stages of design.. The second is standardizing wherever possible, particularly through approaches such as DFMA that improve repeatability and reduce variability..
Finally, operators should build stronger partnerships with suppliers capable of supporting projects throughout their lifecycle.. “The earlier you align design, supply, and execution, the more control you’ll have over the outcome.”. While uncertainty won’t disappear altogether, the challenge becomes how to manage it effectively..
For Quintero, this looks like removing reliance on traditional construction models that simply don’t make sense in an increasingly volatile environment. Too many projects, he says, are still built around supply chains that no longer exist, forcing teams into reactive problem-solving when issues arise.. “The companies that will lead this industry will be the ones that remove uncertainty before it reaches the job site.
The more predictable your project is,” concludes Quintero. “The faster you’ll commission the building.”. To hear more about navigating global supply chains listen to the full DCD>Talks episode with Daniel Mendez Quintero, here.
