A surge in global demand for artificial intelligence is straining the construction industry’s ability to deliver the massive data centers needed to power it — and without faster technology adoption, that strain could become a major choke point for the AI economy, according to a new white paper from Swiss construction software provider Revizto.

The report warns that unless builders evolve their methods and tools, they risk falling short of the scale, speed and precision modern data center projects demand. Currently, many firms still rely on outdated workflows that don’t match the complexity of the jobs at hand.

“The construction industry can’t keep pace with demand using static tools like Excel and PDFs,” said Revizto CEO Arman Gukasyan in a statement. “If we’re serious about meeting the demands of modern data center builds, we need a fundamental shift in how we deliver the physical infrastructure that supports them.”

This call for faster innovation comes as global spending on data centers is projected to skyrocket. Dell’Oro Group, a Redwood City, California-based market research firm, estimates capital expenditures on data centers will surpass $1 trillion annually by 2029. Tech powerhouses including Microsoft, Google, Amazon and Meta are expected to pour more than $300 billion into data centers and computing power this year alone.

Yet Revizto’s research found that 27% of global AEC (architecture, engineering and construction) professionals still rely on email, spreadsheets and static PDFs as their main digital tools — a risky gap for projects that increasingly demand real-time collaboration and integrated data flows.

Data center construction comes with uniquely tight timeframes and layers of complexity. Some jobs are moving from initial concept to detailed design in as little as 10 weeks, the white paper noted, requiring seamless communication, vast datasets, and careful compliance with evolving regulations.

To adapt, U.S. contractors are changing how they approach these high-stakes builds. John Arcello, advanced technology core market co-leader at general contractor DPR, said firms are getting involved much earlier to help clients assess sites, navigate entitlements, secure energy connections, and plan utilities well before ground breaks.

“Preconstruction services and capabilities have become a true differentiator,” Arcello told Construction Dive earlier this year. “Early engagement is critical to stay on track.”

Firms are also turning to prefabrication more aggressively to keep timelines and costs under control. Arcello said teams are increasingly building large components offsite in regions with more available labor and transporting them to remote data center sites — a strategy that helps ease the skilled labor crunch and cuts down on costly rework.

Adding to the cost pressures, new tariffs under President Donald Trump’s administration are throwing another curveball at contractors’ budget forecasts. “The newly adopted tariffs have become a new variable in cost control,” said Ike Keene, vice president of commercial at Montgomery, Alabama-based Caddell Construction. “We are adapting day by day for accurate current and future pricing structures to aid our clients in forecasting for the future.”

Despite these challenges, the industry is pushing forward to avoid becoming a bottleneck in the race for AI dominance. The white paper urges contractors to invest more heavily in integrated construction software, real-time collaboration tools and advanced digital workflows that can keep pace with the scale and speed of the world’s next generation of data centers.

Without that shift, the promise of AI could run up against a very old-world problem: not enough concrete, steel or skilled hands ready to deliver the critical infrastructure on time.

Originally reported by Jennifer Goodman in Construction Dive.