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Some of the most important decisions on a data center construction project happen long before the shovels hit the ground, said Lara Poloni, president of Dallas-based AECOM.
And the money alone won’t get the projects built, he said.
Data center developers, for example, must determine whether a potential site has access to reliable power and water. Permit and community concerns must be resolved before teams are on site.
The complexity of these constructions also requires “specialized expertise,” Poloni said. These decisions have pushed property owners to seek advice much earlier in the development process, a trend that Poloni believes will grow over the next decade.
Here, Poloni talks to Construction Dive about data centers, project risk and construction opportunities.
Editor’s Note: The following has been edited for brevity and clarity.
Immersion in CONSTRUCTION: Where do you see the strongest opportunities?
LARA POLONI: What’s particularly encouraging about the growth we’re seeing in our record portfolio and pipeline is that it’s broad-based.
We see growth opportunities in all of our key transportation, water, environmental, energy and facilities markets, both in the United States and internationally.
Lara Poloni
Courtesy of AECOM
It is also remarkable how interconnected these opportunities are. Data center growth, for example, is driving investment in power generation, transmission, water systems, transportation infrastructure, and environmental services.
Today the focus is more on execution. Across the industry, owners are navigating increasingly ambitious projects that require certainty about permits, schedules, resources and stakeholder alignment. The ability to anticipate challenges and manage complexity is becoming a major differentiator.
What is most important to ensure data center construction projects run smoothly?
Today’s data centers must be seen as complex infrastructure ecosystems, not simply buildings.
Demand for data center capacity is accelerating at an unprecedented rate, but the real challenge is making sure the land, power, water, permitting and supporting infrastructure are in place to bring these projects online at the rate the market requires.
The projects that move forward most successfully are those that solve these interconnected challenges together from the start. This means bringing together strategic advice, environmental planning, permitting, utility coordination, engineering and program management. This enables decisions on site selection, infrastructure requirements and delivery strategy to be made with the whole picture in mind.
At this scale and pace, integration is increasingly a prerequisite.
Is labor availability on these projects becoming a bigger constraint?
As projects become larger and more technically demanding, the challenge for the industry is to have access to the right expertise at the right time.
That’s why we’ve been investing at record levels in talent development, leadership programs and technical excellence over the past few years. We’re also investing in technology and innovation that expand what our people can achieve and create more capacity for our teams to focus on higher-value work and solve our customers’ biggest challenges.
Our Think and Act Global strategy is another important advantage. The most specialized expertise is not always where a project is located. By connecting our people and capabilities across regions and markets, we can assemble multidisciplinary teams around a project’s needs and where demand is strongest.
How has the way of assessing project risk changed in recent years?
Going back to 2020, we’ve been very intentional about building a higher-margin, lower-risk professional services business. This included selling or exiting businesses and markets that did not align with our strategy, ceasing to pursue construction at self-execution risk, and moving away from certain contract structures with asymmetric risk profiles.
We are no longer pursuing design-build contracts in our construction management business and, other than two projects referenced in our third quarter earnings call, we have no other design-build projects in our construction management portfolio or portfolio.
We have also fundamentally changed the way we assess risk. The assessment extends well beyond traditional contractual and commercial considerations to factors such as permits, stakeholder requirements, resource availability, and infrastructure dependencies.
Any other trends you’re keeping a close eye on?
One trend that deserves more attention is the growing focus on permitting reform and project delivery.
Governments recognize that funding is only part of the equation. The ability to move projects forward really matters just as much. We’re seeing increased focus on speeding up approvals, streamlining permitting processes, and removing barriers that can delay critical investment. These efforts have the potential to unlock value and significantly improve outcomes in many industries.
Clients seek advice much earlier in the lifecycle of major projects and programs. Decisions made long before design or construction begin can have an outsized impact on cost, schedule, risk, and outcomes. This is driving greater demand for strategic advisory and program management capabilities that help clients make these decisions with greater confidence.
