The data center sector is undergoing a period of transformation as technical advances and sustainability requirements demand facilities that are not only operationally efficient today but also resilient and adaptable for tomorrow.

With the added complication of geopolitical uncertainty affecting supply chains and pricing, the key to successful development lies in hitting the sweet spot that balances flexibility, cost, speed, and risk to ensure long-term value.

Developing cost-effective facilities that can flex to cope with future demands is particularly pressing in the context of artificial intelligence (AI), which is reshaping the physical and operational demands on data centers. Traditional facilities, designed around general-purpose servers with traditional power and cooling needs, are no longer sufficient. AI workloads, such as those involving large language models and accelerated computing, require high-density racks, often populated with multiple graphics processing and data processing units (GPUs and DPUs).

This shift has major implications for design. For instance, liquid cooling, once a niche solution, is becoming increasingly necessary to manage the thermal output of AI servers. According to recent industry analysis from Schneider Electric, up to 60 percent of new server deployments in 2025 are expected to support AI applications, many of which will require liquid or hybrid cooling systems. This marks a departure from the fully air-cooled environments that have dominated the sector for decades.

Designing for AI capability also means rethinking the amount of space needed for facilities. Developers are expanding existing campuses and repurposing industrial sites – such as former factories – for multi-story data centers. For example, it is reported that Vantage is planning a 10-building campus at the former Ford car factory in Bridgend, Wales.

In some locations, vertical expansion is also being considered to meet growing demand, particularly for AI workloads. In addition to larger footprints, AI data centers need denser and more complex operating systems, in turn requiring structural systems capable of supporting heavier equipment loads and electrical infrastructure that can be scaled to accommodate higher demands for power.

Unsurprisingly, given the scale and pace of the change, the market is yet to develop a standard consensus on designing and delivering these AI-ready facilities. Many developers are adopting a hybrid approach, designing for current cloud-based workloads while allowing for future changes to be made to accommodate greater use of AI. This relies on careful scenario planning to ensure that facilities can pivot as technologies evolve.

This kind of forward planning also plays a critical role in mitigating supply chain risks. Linesight’s recent Construction Market Insights report shows that the global construction sector continues to face volatility due to shifting trade policies and tariffs.

Having worked on projects across APAC and Europe, I’ve seen first-hand that clients who engage early with their supply chain and maintain transparency about their development pipeline are better positioned to secure capacity and maintain delivery momentum. Pre-qualification frameworks and early contractor engagement are becoming standard practice, helping clients secure capacity and maintain quality across multiple sites. Trust-based models, in which long-term relationships are prioritized over transactional procurement, are proving effective in managing risk and ensuring delivery continuity.

Sustainability is another key driver of change and a high priority for developers. With data centers accounting for an estimated two percent of global electricity consumption, and that figure expected to double by 2026, developers are under pressure to reduce their environmental impact. Many are now tying capital funding to sustainability performance through green bonds or sustainability-linked loans. This financial linkage is influencing design decisions, from the use of alternative backup systems to the integration of renewable energy sources and low-carbon materials.

In the UK and across Europe, regulatory frameworks are evolving to reflect these priorities. New directives on thermal emissions and energy efficiency are guiding design decisions, particularly around backup power systems and cooling technologies. For example, some developers are now exploring hybrid backup systems that combine diesel generators with battery energy storage systems (BESS) to remain below regulatory thresholds for thermal output.

As the sector continues to evolve, the ability to adapt will be a defining characteristic of successful data center strategies. Ultimately, the goal is to strike a balance between readiness and resilience. There is no one-size-fits-all solution, but by embedding flexibility into design, engaging early with the supply chain, and aligning with sustainability and regulatory trends, developers can position themselves to meet both current and future demands.