The data center industry is poised for significant changes in 2025, and not just due to the rapid evolution of AI and machine learning technologies. The rise in demand for data center capacity, coupled with a recognized shortage in industry workers with increasingly specialized skills and experience, is driving a new approach to construction and integration projects for data center development. The need for experienced force multipliers to execute these complex projects is leading to increased collaboration and shared responsibilities among data center operators and contractors.
Rob Morgan, VP of White Space Integration at Compu Dynamics, recently shared his 2025 predictions on VMBlog. Here is the summary.
Expanding Scope of Partnerships
In 2025, data center operators are likely to forge deeper and more comprehensive partnerships with contractors. These relationships will extend beyond traditional build-only contracts to encompass a wider range of services and expertise, including the below areas.
- Collaborative Project Management: The complexity of modern data center projects – and the pace at which the requirements are changing – will necessitate more collaborative project management approaches in 2025, taking into account major shifts in power, cooling, network, security, local policies and more.
- Optimized Data Center Solutions: Data center contractors will be increasingly involved in the early stages of data center projects, contributing their expertise alongside leading and innovative manufacturers. This integrated approach will help optimize designs and project execution for efficiency and speed-to-market.
- Long-Term Maintenance Agreements: Partnerships are likely to extend into long-term maintenance, compliance and operations support agreements. Data center constructors may engage to provide ongoing support and upgrades, ensuring continuity and leveraging their intimate knowledge of the facilities.
With the rise of data center solutions providers offering white space integration, construction, support services and more, traditional separation between operator and contractor teams will frequently overlap and merge. In 2025, the rise of more integrated project teams is likely. These cross-functional groups will combine their expertise as a unified team to solve complex challenges, bridge the skills gap and drive innovation, providing end-to-end solutions that prioritize performance, efficiency, sustainability and total cost of ownership. Operators and contractors will also likely collaborate to develop and implement innovative sustainable technologies.
Cloud-based and edge computing will continue to play a crucial role in 2025, driving the need for smaller, more distributed data centers to support emerging technologies like 5G. Power density in data centers is also predicted to increase to 52 kilowatts per rack in the coming year, further driving the trend toward liquid cooling and other innovations. New regulations, compliance measures and sustainability initiatives are catching up to industry progress and will continue to do so, necessitating stronger security measures, innovative water and energy conservation measures, advanced cooling systems, and increased renewable energy integration.
The Data Center Services Market, which is expected to reach USD 110.34 billion by 2030, is growing at a CAGR of 9.99%. This growth presents opportunities in areas such as hybrid cloud environments, liquid cooling, green data centers and AI-driven analytics for optimizing operations, all of which will require highly specialized expertise in all areas of data center development. Proven success and a breadth of technical experience in developing and executing data center projects will be key going into the future for enterprises when selecting data center contractor teams to ensure that projects are completed flawlessly, on time and within budget.
In response to increasing demand, the data center industry in 2025 will be characterized by deeper, more integrated partnerships between operators and constructors, with data center contractors providing services that extend beyond construction. This collaborative approach will drive innovation, improve efficiency and help meet the growing demand for data center capacity. Embracing this trend early and developing strong, trust-based partnerships will prove key in positioning enterprises for success in the quickly evolving landscape.
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