Significantly larger, and vastly more complex than the traditional model – it’s no wonder the tried-and-tested delivery models aren’t working for hyperscale data centres. In this article, Soben Associate Director, David Lymburn explores why PMC might be the answer.

Hyperscale data centres are large, complex, and mission-critical facilities that require precise execution in terms of time, cost, and technical performance. Traditional delivery models (like general contracting or design-bid-build) may not always provide the level of expertise, flexibility, or risk management that such projects demand. Increasingly, here at Soben, we’re talking to hyperscale clients interested in alternative delivery models such as Project Management Consultancy (PMC). 

PMC is becoming a popular alternative for hyperscalers looking for scalability, flexibility and speed-to-market. Replacing the traditional GC model, the PMC oversees and manages every aspect of your project. As your representative, they act as an extension of your team, ensuring your project is delivered within the specified scope, budget, and schedule, while adhering to quality, safety, and regulatory requirements. But what are the benefits of moving to a PMC approach, and why is it a great fit for hyperscalers? 

Managing complexity and scale

Hyperscale data centres are significantly larger and more complex than typical data centres. They involve advanced infrastructure, cutting-edge technology, and massive electrical and mechanical systems, all of which need to work seamlessly. A PMC model allows the client to engage a specialist firm with deep expertise in managing such complexities across various workstreams, offering:

• Specialised expertise in data centre construction, including managing high-density power, cooling systems, security, and IT infrastructure.
• Integrated project coordination and control across multiple contractors, suppliers, and technical consultants, reducing the risk of coordination failures.

Faster delivery and speed-to-market

For hyperscale data centres, speed to market is often critical, especially for clients like cloud service providers or tech giants who are expanding to meet growing digital demands. Traditional models may be slower due to fragmented project stages (e.g., design-bid-build involves separate design and construction contracts). The PMC model, however, offers:

• Concurrent management of design, procurement, and construction, leading to faster execution.
• Early involvement of the PMC in the design and planning phase, enabling faster decision-making and minimising delays during execution.
• Agile project management, where the PMC can quickly respond to unforeseen challenges or changes, ensuring that critical milestones are met.

Risk management and oversight

The scale of investment in hyperscale data centres often exceeds hundreds of millions of pounds, meaning that risk management is paramount. The PMC model can provide enhanced oversight and reduce risk through:

• Specialised risk management frameworks: A PMC can implement robust processes for identifying, mitigating, and managing risks, especially those related to construction delays, cost overruns, or technological challenges.
• Accountability and transparency: The PMC acts as the client’s representative, ensuring that all contractors and suppliers are held accountable for quality, budget, and schedule. This reduces the risk of misaligned objectives or cost inflation from the supply chain.

Scalability and flexibility

Clients in the hyperscale data centre sector are often planning long-term expansion strategies and may need to scale operations rapidly across different geographic regions. Traditional delivery models may lack the flexibility needed to adapt to changing requirements. A PMC, on the other hand, provides:

• Scalable project management solutions that can be adapted to multiple sites across different regions (e.g., EMEA or globally).
• Flexible resource allocation: The PMC model allows for reallocation of resources, workforce, and expertise as needed, ensuring that the project can scale in alignment with the client’s expansion goals.

Cost efficiency and value optimisation

Hyperscale data centre projects are capital-intensive, and managing costs efficiently is crucial for profitability. The PMC model offers a strategic advantage in controlling costs through:

• Proactive cost management: The PMC provides early and continuous input on budgeting and cost control, helping avoid cost overruns and identifying cost-saving opportunities through value engineering.
• Competitive procurement strategies: By managing relationships with key suppliers, subcontractors, and specialists, the PMC can negotiate better terms and pricing, ensuring that the client benefits from economies of scale and competitive bids.
• Avoidance of hidden costs: A PMC acts as an independent consultant, focusing on minimising hidden or unnecessary costs that might arise due to contractor-led inefficiencies in traditional models.

Improved quality and performance standards

Hyperscale data centres must operate at optimal performance levels with minimal downtime, making quality assurance a top priority. A PMC focuses heavily on ensuring that the construction quality and system performance meet or exceed industry standards:

• Rigorous quality control: PMC firms implement comprehensive quality assurance and testing protocols to ensure that all systems (e.g., electrical, mechanical, IT) are installed correctly and function as intended.

Navigating regional differences

In the EMEA region, there are numerous challenges related to regional variances in construction practices, regulations, and market conditions. The PMC model can mitigate these issues by providing:

• Local expertise: PMCs often have regional knowledge or local offices, ensuring compliance with specific local laws, labour practices, and building codes.
• Global best practices with local adaptation: A PMC can apply international best practices in data centre construction while tailoring them to local market conditions, helping balance global standards with local requirements.

Conclusion

The decision to explore alternative delivery models like PMC for hyperscale data centre development stems from the need for specialised expertise, faster delivery, risk mitigation, and cost efficiency. The PMC model offers a client-focused approach that ensures the complex requirements of hyperscale facilities are met through agile project management, enhanced accountability, and an integrated approach to procurement, construction, and commissioning. This is particularly relevant for clients operating across the diverse and dynamic markets of the EMEA region, where both local knowledge and global best practices are essential for project success.

Soben is working with the global leaders in hyperscale and colocation data centre development on some of the world’s largest, most complex schemes. Find out more at www.sobencc.com/discover.