A data center might look like any other warehouse from the outside, but behind the concrete and steel, these builds come with serious complexity and mega budgets. 

Apple is planning to pour $20 billion into two new centers in Pennsylvania, CoreWeave is building a $6 billion facility, and that’s barely scratching the surface of the data center boom spreading across the U.S. 

Landing one of these jobs sounds like hitting the jackpot, and it can be. But the contract you sign will decide whether you’re walking away with profit or problems.

Simple Boxes, Complex Backbones

Andrew Greene, partner at Perkins Coie in Seattle, put it plainly: “Data center projects tend to be relatively simple structures with really sophisticated power and utility needs and really unique equipment requirements.”

That means what looks like a straightforward build often hides layers of risk, from supply chain and labor shortages to specialized materials and tight deadlines that don’t leave room for error.

Most projects use EPC (engineering, procurement, and construction) contracts or turnkey models, meaning one contractor handles it all from design to delivery. 

That structure keeps ownership clean but puts more weight on the contractor's shoulders, especially when you factor in all the permitting and regulations involved. 

Speed Kills (Your Margin)

AI demand is driving developers to build fast. Fast-track delivery has become the norm. But that speed magnifies risk at every turn.

These jobs are often in remote areas with limited labor pools, meaning it can be difficult to find workers with the skills and experience to deliver quality work without sacrificing time or safety. 

“Anytime you’re dealing with high voltage [and] this level of fast track, it requires operational excellence. Navigating safety in this type of environment is absolutely critical,” Trent Cotney, a construction lawyer, said.

The pace can push even solid teams to the edge. Operational excellence isn’t a buzzword here; it’s the only thing standing between you and costly mistakes, safety incidents, or project delays.

Materials That Move the Needle

Copper plays a critical role in data center builds, especially for power and cabling. But with new tariffs driving up costs, it’s become harder to predict pricing.

Those price increases don’t hit immediately. They work through the supply chain over several months, and by the time they show up, you’re already locked into numbers that may no longer work.

Contractors are fighting back with price acceleration clauses, tariff-specific language, and direct purchase orders to give owners the full cost picture. If you're footing the bill for rising material costs, and there's no language in your contract to cover it, you're taking that hit alone.

Other materials raising flags: aluminum, fiber optics, lithium batteries, refrigerants, and overseas-sourced equipment like transformers and generators. 

High Risk, High Reward

There’s no question that data center construction is where the money is right now. But the profit only comes if you’re clear on the risk. If you're chasing data center work, don’t get dazzled by the dollar signs. Lock in the details, know the risks, and nail down that contract before you break ground.