A comprehensive guide to building data centres

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Every tap to pay, every late-night film stream, every AI prompt rests on infrastructure most people never see. Every second, data centres keep the world moving, supporting the digital services that businesses and people rely on. 

What started as server rooms tucked away in offices have become some of the most complex infrastructure projects of the modern era. Today’s data centres must be built with absolute precision - power systems that won’t fail, cooling networks designed for constant high demand, and connectivity that keeps information flowing without interruption.

At RED, we see first-hand the scale of this challenge. Building a data centre means balancing performance, sustainability, and resilience from day one. It requires careful coordination across disciplines, with every decision shaping how reliably that facility will serve businesses and society in the years ahead.

In this guide, we take you inside the journey of data centre development - exploring who builds data centres, what it really takes to deliver them, and the investment, both in cost and time, required.

Who builds data centres?

Building a data centre is never the work of a single company. Behind every facility is a network of specialists, each contributing essential expertise to bring these complex projects to life. 

Design-build firms set the direction, bringing architectural, engineering and construction expertise tailored for the demands of mission-critical infrastructure. Experienced general contractors manage the construction process, coordinating the many moving parts that a successful build requires.

Electrical and mechanical engineers design the power, cooling and fire safety systems, while network providers deliver the high-speed connectivity that keeps operations running. Specialist commissioning agents test and verify that every system performs exactly as designed.

The clients driving data centre demand range from hyperscale cloud providers constructing massive campuses to colocation operators offering shared infrastructure services for multiple clients, and businesses building private facilities for their own operations.

Each project looks different, but all rely on the same ecosystem of expertise and rigorous execution.

What is needed to build a data centre?

Every successful data centre project starts with the right site and the right infrastructure. Location sets the foundation: power availability, strong connectivity, and regulatory clearance. Without those, the project doesn’t move.

Reliable power is non-negotiable, with facilities often requiring tens of megawatts delivered through high-capacity feeds. Equally, fibre connectivity must be in place, with multiple providers ensuring the fast, low-latency, high-bandwidth links that modern services depend on. Climate, planning permissions, and environmental regulations all shape feasibility and long-term efficiency.

Climate considerations drive design and operational costs, while planning permissions, building codes, and environmental regulations add an extra layer of complexity to how projects are delivered.

From there, design turns to the core systems that keep a facility running, where continuous operation relies on robust electrical infrastructure - from uninterruptible power supplies (UPS) and standby generators to power distribution infrastructure. 

Cooling systems must keep pace with constant heat output, whether through precision air systems or advanced liquid cooling for high-density environments, while fire suppression protects equipment without causing damage. Throughout it all, physical and digital security ensure that both infrastructure and data are protected around the clock.

At every stage, redundancy is built in, so no single point of failure can bring data centre operations down.

How are data centres designed?

RED designs data centres with operational performance and future growth in mind, ensuring energy-efficient, resilient, and scalable facilities tailored to each organisation’s requirements

Every design starts with understanding the workloads the facility will support. Standard IT applications have different needs from AI or high-performance computing, which demand higher power density and advanced cooling. These requirements guide all design decisions in order to ensure the facility meets current needs and can scale as demand grows.

Energy efficiency is central to our approach. We aim for low Power Usage Effectiveness (PUE), with the most advanced facilities operating below 1.2 - meaning almost all energy goes directly to computing. Modular designs allow operators to scale capacity in stages, reducing initial upfront costs and providing flexibility as technology evolves.

Sustainability is also built into every aspect of our designs. Facilities can make use of renewable energy, waste heat recovery, and water-efficiency measures, with the option to capture heat for district heating, add on-site solar or wind generation, and include battery storage to support grid stability.

To complement our energy-efficient and sustainable design principles, scalability is considered from day one, ensuring facilities can grow with increasing demand. Our designs anticipate future growth, including additional servers and upgrades to cooling and power systems, ensuring each data centre remains capable as digital needs change.

How to build a data centre

Building a data centre is a complex multi-phase process. From initial feasibility studies through to final commissioning, every step ensures that power, cooling, security, and connectivity operate together as intended. Here’s an overview of the key stages in a successful build.

1. Planning and feasibility

Anyone researching how to build a data centre will find that success starts with careful planning and site analysis. Feasibility studies assess site suitability, power capacity, and connectivity options. Detailed budgets account for sophisticated equipment, while permitting ensures compliance with building codes and environmental regulations. For data centres, planning can take as long as construction itself.

2. Design and Engineering

Once the site is confirmed, the facility is designed to meet operational and industry standards. Power distribution, cooling, and security systems are mapped out, sustainability features are integrated, and layouts are optimised to support scalability and future workloads

3. Regulatory compliance and permitting

Compliance is checked at every stage. Environmental impact assessments, building permits, and other regulatory requirements ensure the facility meets legal, safety, and operational standards before construction begins.

4. Site prep and structural work

Foundations are built to support heavy equipment and reduce vibrations. The building is designed to fit raised floors, reinforced areas for generators, and space for large mechanical systems. Every detail is tailored to data centre requirements.

5. MEP installation

Mechanical, electrical, and plumbing systems are the most complex phase. Power systems, including high-voltage switchgear, transformers, UPS units, and generators, are installed, followed by cooling systems and advanced controls to keep equipment at the right temperature.

 6. Equipment fit-out

Server racks, cabling, and environmental monitoring systems are installed. Every component is arranged to maximise efficiency, maintain safety, and ensure easy access.

7. Network setup and testing

Connectivity, cybersecurity, and redundancy systems are implemented. Extensive testing, including load simulations, failover drills, and power outage scenarios, ensures all systems operate reliably under real-world conditions.

8. Final commissioning and go-live

Final verification confirms that all systems, from power failover to fire suppression, operate as designed. Compliance audits are completed, and once approved, the facility is handed over to operations teams to begin hosting critical workloads.

Data centre timelines and costs

So, how long does it take to build a data centre? The answer depends on scale and complexity. Modular or prefabricated sites can be ready in as few as six to twelve months, while larger, custom-built facilities usually take eighteen to twenty-four months. Facilities designed for AI or high-performance workloads require more advanced power and cooling systems, which can extend construction timelines.

Our own projects illustrate this. DUB15 GPP in Ireland reflects the scale and complexity of hyperscale builds, typically delivered in 18–24 months. Similarly, the Halk Bank Data Centre in Turkey, with features like waste heat export and free cooling, falls into the longer timeframe category, compared with modular facilities that can be ready in months.

We’re often asked, “How much does it cost to build a data centre that can meet today’s performance and sustainability standards?” The answer isn’t straightforward - costs vary with size, location, and system requirements. Land, construction, and equipment, especially power and cooling infrastructure, make up the bulk of expenditure. 

Design and engineering fees ensure all systems integrate correctly, while regional factors (like labour rates and regulatory requirements) can further affect budget.

Timelines, costs, and design decisions make data centre projects complex. That’s why organisations frequently choose RED Engineering to plan, design, and deliver data centre facilities ready for today’s needs and tomorrow’s opportunities.

Building a data centre isn’t just about concrete and servers - it’s about creating reliable, efficient, and future-ready infrastructure. Whether you’re exploring how to build a data centre from the ground up or expanding an existing facility, RED has the expertise and can help at every stage.

Talk to our team today to see how we can help bring your data centre vision to life.