The rise of data center construction in the US in 2020

The data center construction market has grown exponentially in the US in recent years. The development of new technologies, including AI and 5G, as well as the exponential growth of cloud centers, has increased the demand for sites in which to store data.

Subsequently, in order to successfully build and sustain these centers in line with expectations, it is crucial to recruit the right people, with the right experience in order to deliver objectives.

With the data center construction market expected to register a CAGR of approximately 9% in the next five years, businesses simply cannot afford to get it wrong when planning to make waves in a digitally-dominated world.

The rise of data center construction

It was reported last month that in the first half of 2020, £23.5bn was spent on global data centers. This is more than six times the $5bn (£3.9bn) annual average figure.

While this figure was always expected to rise as technology continues to develop, it is also a direct result of many companies moving operations entirely online as a result of the COVID-19 pandemic, as well as an increased use of data by various healthcare departments from clinical trials and several outpatient records, including further analysis of such data to derive meaningful analysis.

In fact, according to JLL’s Mid-Year Data Center Outlook, the total YTD returns for the data center industry as of June 2020 were 19%, compared to just 2% in the industrial sector, -18% in the residential sector and -25% in the office sector.

Going beyond exponential growth, we are also seeing major companies think about sustainability when constructing data center sites. For example, Apple has recently announced that their 45,000 square-meter facility in Viborg, Denmark runs on 100% renewable energy, as well as committing to building more renewable energy sites that will produce enough to power almost 20,000 homes.

The importance of hiring the right people in data center construction

Like any other large scale construction project, making the right hiring decisions when building a data center can be the difference between success and failure.

With market spend rising year on year, and with analysis suggesting this trend will continue long term, attention must be paid to sourcing individuals who possess the relevant experience, as well as the attitudes that are aligned with the needs of the business.

In addition, with so many factors to consider in the development of data centers, including innovation, location and sustainability to name a few, it is critical to hire the people who can ensure success on a long term basis.

Working with a retained executive search partner

It is just as important to find an individual who works in a way that is aligned to the culture of a business as it is to find an individual who is adequately qualified. This is something we believe in strongly at G&E Partners, applying our unique talent management approach to executive search campaigns in the construction sector.

The roles we recruit for in data center construction include, but are not limited to:

• Estimators
• Superintendents
• Project Managers
• Project Executives
• Pre-Construction Contractors.

By working with our clients in construction as trusted partners, we are able to exclusively connect them with highly qualified individuals who boast several years of experience in data center and mission-critical processes.

To ensure a perfect fit every time, we find out exactly where a candidate wants to be in their career, as well as what challenges their next role must offer them. This then allows us to determine the requirements of their next role to provide them with the growth they require, at the right business. You can read more about our talent management approach here.

Our specialist consultants are currently working with leading candidates in the construction of data centers across the US market. For a friendly discussion about your hiring needs, please contact us today.

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