Ryan Cos. Executives Discuss Challenges in Data Center Construction
Executives at Ryan Cos., a major U.S. contractor, are highlighting the growing challenges facing data center construction amid high demand and regulatory hurdles. While there has been a slowdown from earlier surges in project announcements, data centers remain a key source of work for large contractors like Ryan Cos. However, delays due to zoning issues, permitting problems, and supply chain constraints have made builders more selective about which projects they pursue. Eric Abrams and Michael Beadle, senior vice presidents at Ryan Cos., emphasized that site selection is critical in determining the success or failure of a data center project. Factors such as access to reliable power, regulatory efficiency, cooling strategies, and labor availability are now central considerations for developers. The executives also noted misconceptions about how quickly these facilities can be built—pointing out that physical construction timelines lag far behind digital innovation due to supply chain delays. Ryan Cos.' experience with a Google data center project illustrates the financial risks involved: legal challenges over environmental reviews led to potential losses of $5 million or more. As such, contractors are increasingly prioritizing long-term partnerships and strategic planning to mitigate these uncertainties.
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Topics: contractor strategy data centers project delays zoning issues