A Virginia Commonwealth University data center project in Richmond has seen its construction costs rise 67 percent in six months, because of miscalculations.

The data center, originally slated to cost $580 per square foot, will now cost $970 per square foot, with the jump due to increased labor and construction costs, along with the unforeseen need to put in a raised floor and data center cooling systems.

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– Virginia Commonwealth University

The six-story, 30,000-square-foot (2,800 sqm) facility at 707 W. Broad St. was announced in November 2021, and was originally expected to cost $42 to $44 million, with the University paying $23 million of that figure, and the state making up the rest. The data center is intended to serve the University and its health system.

VCU's data center is currently in the Pocahontas Building, next to the Virginia Capital, but the state wants that building back so it can demolish it for a new Supreme Court. VCU came up with the plan of building a new facility on a parking lot adjacent to VCU’s existing technology services building, owned by the University's real estate arm, the VCU Real Estate Foundation.

Now, the Culpeper Star-Exponent reports the VCU's overall share is due to go up to $31 million, with the construction part of that jumping by 67 percent.

The price rise appears to have been partly caused by haste necessitated by the state's decision, according to the Star-Exponent. "The state didn’t give VCU much time to pack," the site reports. "The university has to be out by December 2023."

Rich Sliwoski, associate vice president of facilities management at VCU, reportedly said. “I’ve never done anything in the light speed that we’re expected to do this."

VCU miscalculated the building requirements, the site reports, including the need for raised floors and a stronger air conditioning system.

Meanwhile, basic construction costs have gone up because of labor shortages, higher material costs, increased demand, and supply chain delays caused by Covid-19.

Building construction wet up 39 percent in early 2022, with cement up seven percent, structural steel up 20 percent, and PVC pipes up by 36 percent.

The higher cost has been approved by a VCU committee on Thursday, and the full board will vote on it today.

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