In Part One of our series on advanced technology construction, we examine the rapid expansion of data centers and semiconductor facilities and what it takes to deliver the infrastructure powering the digital economy. Jessica Busch is joined by Jeff Leeper and Tom Vanelli to discuss the demand driven by AI, cloud computing, and onshoring, and why these projects introduce new levels of complexity for owners and project teams. The conversation explores how data centers, semiconductor manufacturing, power, and infrastructure are tightly connected, creating challenges around site selection, labor, safety, and schedule. The group also outlines how owners are responding to power constraints through early planning and emerging solutions such as renewables, nuclear restarts, and bring your own power strategies. This episode provides a practical perspective on the decisions shaping advanced technology construction today and sets the foundation for a deeper discussion in Part Two.

Podcast-utskrift

[00:00:00] Jessica Busch: These aren’t just your typical buildings. When we’re talking about construction, they are the literal backbone of our digital economy.  

[00:00:07] Tom Vanelli: You look at the data center capacity out there, there’s, there’s roughly globally 50 gigawatts of capacity that’s, that’s in operation. Uh, there’s another 15 gigawatts that’s currently in construction. 

[00:00:18] Jeff Leeper: 3, 4, 5, 6, 7,000 people that are coming in to build these, these factories and build these, uh, data centers.  

[00:00:26] Tom Vanelli: We’re seeing some of the hyperscalers are engaging to restart nuclear power plants that have been shut down. 

[00:00:38] Jessica Busch: This is the Construction Insiders Podcast.  

[00:00:40] I’m Jessica Busch bringing you the newest trends and strategies in construction essential to anyone in the industry.  

[00:00:47] Welcome to the Construction Insiders Podcast, where we dive deep into the trends, challenges, and innovations shaping our built environment. So, today we are going to explore one of the most rapidly [00:01:00] changing, most dynamic sectors in our construction industry today. We are going to be talking all things data centers, semiconductors, advanced technology. Because as many of you can assume or know, these aren’t just your typical buildings when we’re talking about construction. They are the literal backbone of our digital economy, powering everything from AI to cloud computing, and even the devices we use every day. 

[00:01:30] So, with demand exploding, increased pressures, we wanted to bring in two of our top experts to really dive in to how to successfully deliver these complex, high stakes projects. So joining me today, we have Jeff Leper, President of Worldwide Professional Solutions, a. Professional Construction services company that really focuses on that advanced technology space from mission-critical, energy and semiconductor, as well as Tom Vanelli, Senior Director over at Cumming Group, with a focus on the advanced technologies, um, sector, as well. 

[00:02:09] So thank you gentlemen for taking your time today. Um, I look forward to this discussion.  

[00:02:14] Jeff Leeper: Thanks, Jessica.  

[00:02:14] Tom Vanelli: Takk.  

[00:02:15] Jessica Busch: I have quite a few questions for you guys so we can get to the bottom of this. Um, and starting off, for those that really aren’t tracking this specific type of build as much as you guys are, can we start with the big picture, um, the unprecedented growth we’re seeing in these facilities. 

[00:02:34] What’s driving that growth? The demand, um, and the significance of this type of scale when we’re talking about growth, can you guys start kind of painting that bigger picture before we jump into too many details here?  

[00:02:48] Tom Vanelli: Uh, i’ll, I’ll jump in first from the data center space. Um, you know right now when you look at the data center capacity out there. There’s, there’s roughly globally 50 gigawatts of capacity that’s, that’s in operation. Uh, there’s another 15 gigawatts that’s currently in construction. And when we take a step back and we look at what’s in the pipeline for delivery, right now it’s well over a hundred gigawatts. 

[00:03:10] So you can see, and that’s between now and the end of 2030. Uh, so basically here in the next three to four years, we’re expecting to see exponential growth in the data center sector. That’s obviously very, very heavily driven by the AI demand that we’re all hearing about so much in the news right now. 

[00:03:26] And then of course, that then ties into where, maybe I’ll kick it over to Jeff for a little bit.  

[00:03:31] Jeff Leeper: Yeah. The semiconductor business right now is booming both from a microprocessor perspective, as well as from the memory perspective. Both are needed to be deployed into a data center to bring the servers up, to bring up the traffic into a data center so that uh, they can meet their customer’s needs. These customer needs are, uh, across the gamut from, again, as mentioned, AI, uh, the cloud compute, banking, every aspect of industry and life, [00:04:00] uh, down to the personal device you may use at your home. It’s a very interesting, um, uh, perspective having been in the data center world before and how that compute power is, it’s under so much demand, but the growth is again stimulating into semiconductor, along with the onshoring of manufacturing in the U.S. that’s bringing more semiconductor companies into the U.S. So, we’re seeing that very rapid expansion in demand in the US right now.  

[00:04:28] Jessica Busch: So, I hate to bring things up that have, we’ve talked about off camera ’cause we’ve had a lot of time together for this. 

[00:04:33] But Jeff, when we were talking earlier today, you mentioned kind of how data centers, semiconductors, power, infrastructure, how they’re all interconnected. And I kind of wanted to bring that up on, on this episode here and, and talk about, you know; nothing seems to really exist in isolation. Can you explain to us how they’re feeding off of each other and what that means for a project from a, from a project delivery standpoint, I guess? 

[00:05:00] Jeff Leeper: Sure. No, that’s a great question. Uh, yeah, the semiconductor data center both consume just massive amounts of power. So, as companies are coming in to build, it’s all about land permits, power, and in many cases, the semiconductor, it’s a lot of water, uh, to a lesser degree within the data center. But everybody’s competing for all those resources and infrastructure, uh, both in terms of, uh, power generation, power distribution, and then power into their data center site or semiconductor site. 

[00:05:30] So they’re buy-in for the same resources and throughout the U.S. we’re seeing where markets are, uh, opening up for, for example, down in Texas, uh, power and is, uh, power availability out into more rural areas is driving a demand for projects and which brings in labor into those regions as well, which is a whole different topic by itself. 

[00:05:49] Jessica Busch: I was like, don’t jump ahead, we’re gonna get there, believe me, because it is such a hot topic. Um, and so talking about labor, Tom, um, I know you’re pretty passionate about that. It’s been a, a challenge, let’s just say it.  

[00:06:00] Tom Vanelli: Yes, it has.  

[00:06:01] Jessica Busch: Um, so how are we filling those critical roles as an industry? Um, or how are we not, or what are we doing about it? Um, because it is a very specialized, um, piece of knowledge that you have to have to be able to work on these very complex projects.  

[00:06:19] Tom Vanelli: I, I think there’s several, several ways we’re tackling that as a company and, and probably by extension as an industry. Um, I, I would just say first as, as we also talked about earlier today, we have an incredible internal talent acquisition team that is constantly assessing and looking for the right people to come and join our firm. 

[00:06:38] Jessica Busch: Ja.  

[00:06:39] Tom Vanelli: Um, and, and I think that that is something we need to highlight, uh, that we are looking for help. We need help. There’s ton of opportunities out there, and we would highly encourage anybody that’s, uh, interested in joining us to come take a look and, and get in touch. Um, I would say that first, uh, secondly, we, yes, it is a very specialized industry. However, uh, at the end of the day, it is construction.  

[00:07:02] Jessica Busch: Mm-hmm.  

[00:07:03] Tom Vanelli: And we are a construction management firm and we’re providing a professional service. And, uh, so one thing we are doing is we are looking at internally how we can take people that maybe have not worked in a data center or maybe have not worked in a semiconductor fab and, but they have really good construction management experience. They’ve been out in the field, they’ve done these things that, uh, are very, very important for these projects to be successful and bring them across. And teaching, training, developing. Uh, and it’s usually a very, very short ramp up, uh, to take somebody that has experience in, say, a life sciences project or a power plant or something like that, that’s very heavy in MEP. 

[00:07:42] Jessica Busch: Mm-hmm.  

[00:07:43] Tom Vanelli: And we can bring them across and they can find success very quickly in a data center or a semiconductor fab or any, anything else that’s related. Uh, I would also highlight very quickly for folks that, you know, we, we recognize that the market right now, people have [00:08:00] options, is what I’m trying to say. 

[00:08:01] Jessica Busch: Yep.  

[00:08:01] Tom Vanelli: And, and we recognize that, you know, this is not, we, we don’t own the market. Nobody owns the market. Uh, we think though that we offer a wonderful place for people to come work. We were recently certified as a Great Place to Work uh, at Cumming Group, and, and we think that, uh, that’s, that’s something everybody should know and, and take a strong look at us. 

[00:08:21] Jessica Busch: And, and not to plug us too much, but I have been here for quite a few years. Um, I mean, it really comes down to the culture and the expertise and the growth and the opportunities, um, to move in our company and I, I think that has been really interesting. And as this sector specifically grows and we need 

[00:08:41] those talented individuals. Um, it is, it’s a wonderful place. I’m still here. We’re all still here. And Jeff, what about for you? Because I know coming with WWPS, from your perspective labor, how is that, how is that being managed or what are your pain points?  

[00:08:55] Jeff Leeper: That’s great. It’s a great question. Um, internally, obviously we’re, we’re new to the, newer [00:09:00] to The Cumming Group, 

[00:09:00] Jessica Busch: Mm-hmm.  

[00:09:01] Jeff Leeper: Uh, but the, the culture, the people. Is what, uh, at its core, it is who we are.  

[00:09:07] Jessica Busch: Mm-hmm.  

[00:09:08] Jeff Leeper: Um, and it’s bringing people in who have a passion to learn  

[00:09:11] Jessica Busch: Mm-hmm.  

[00:09:11] Jeff Leeper: And want to learn in new markets. Uh, we can teach construction to be honest. It’s, uh, it’s what I’ve been doing for more than 35 years and I have a huge passion for it. 

[00:09:21] But how do we teach and grow that next generation of, of leaders in this space, project managers, uh, construction managers, cost managers, and so forth. Uh, it’s a, it’s an incredible opportunity for all of us as leaders uh, in this space and, um, it’s a, an exciting time.  

[00:09:36] Jessica Busch: So the challenges that exist in this space, um, and the demand right now with this space, what makes somebody successful? 

[00:09:44] Because we do need new individuals coming into this space and what are the, what are those success points look like as it risk management? Is it creativity? What are you guys looking for? Um, to have these, these really high stakes projects cross the finish line.  

[00:09:57] Tom Vanelli: For me, the ability to communicate is obviously one of the most important things, uh, that that’s out there. 

[00:10:04] Uh, we are interfacing with multiple people on a daily basis. You’re working with a contractor, you’re working with an owner. Uh, everybody at the end of the day has a common goal to deliver a project. However, there’s slightly different. You know, uh, goals when it comes to that, um, and, and how to get there. 

[00:10:21] And so that communication is super, super important to be able to connect the dots and drive a project forward. Uh, I would also say very quickly before I hand it off to Jeff. Uh, work ethic honestly. I, I’ve never claimed to be the smartest person in the room, but, and I definitely don’t think I am today sitting next to Jeff, but, um, uh, but I am willing to work and I’ll work very hard. 

[00:10:43] And, and I think that the people that are on our team that come in and, and join our team, if they’re able to communicate, they’re able to put the, the time and the effort in, and they’re willing to learn and they’re coachable and they’re teachable. Uh, there’s tremendous opportunities out there for them right now. 

[00:10:58] Jeff Leeper: Yeah, I, I would agree. I think that, [00:11:00] uh, folks who are, are coming in, who just truly wanna be a part of a great team  

[00:11:04] Jessica Busch: Mm-hmm.  

[00:11:05] Jeff Leeper: And understanding that we want to value every voice in the room that is someone who’s junior, who’s never been exposed. To be honest, I’ve often found that those are ones that bring the, the best ideas because they’ve not been exposed, and they’re exploring, they’re asking the question, why do you do it that way? 

[00:11:21] And it’s, it becomes really powerful. It’s not, I have 20 years of experience and you don’t know yet. Listen to me con, conversely, you gotta look at the other side that that individual’s coming in really truly doesn’t know.  

[00:11:32] Jessica Busch: Mm-hmm.  

[00:11:32] Jeff Leeper: How do I approach this problem? Help me understand. You know, candidly, I hired somebody in my previous life who had no construction experience and she only wanted to learn, wanted to be a project manager and I hired her and she soaked it up. She just came in and she said, walked in the field. What’s this? That’s rebar. Okay. Explain. And it was so basic, but she was our biggest. And brightest, you know, bright spot if, if you own the group, because she was asking the questions. And a lot of times the team would be like, I actually, I’m not sure. 

[00:12:03] Jessica Busch: Ja.  

[00:12:03] Jeff Leeper: And so, but she  

[00:12:04] Jessica Busch: had the passion for learning.  

[00:12:05] Jeff Leeper: Powerful. Powerful. Yeah. So passion for learning, uh, coming to a culture that embraces that and really empowers the team to think differently and bring solutions. Because oftentimes we find we’re owners, this is the way we do it. We’ve done it this way for 20 years. It’s always gotten results. The market’s different.  

[00:12:22] Jessica Busch: And the space, the,  

[00:12:23] Jeff Leeper: The market’s very different.  

[00:12:23] Jessica Busch: And the space that you guys are working in is different.  

[00:12:25] Jeff Leeper: Absolutt.  

[00:12:25] Jessica Busch: Ever- evolving.  

[00:12:26] Jeff Leeper: A hundred percent. A hundred percent.  

[00:12:27] Jessica Busch: And we’re gonna get there, but I also wanted to talk about, as we’re kinda moving into the build discussion here, site planning, so the critical elements involved with that in this space. 

[00:12:37] Um, schedule, costs, procurement. I just assume that site master planning is quite essential in this space. Um, what do you think about that? Kinda what you’re,  

[00:12:50] Jeff Leeper: yeah. I think site master planning starts very early. It, it starts with site selection and what in the industry you’ll call site due diligence and looking [00:13:00] at a, a piece of property that allows you to maximize the footprint of the facility that you’re trying to build. That site master plan carries through the entire evolution of that, of that build, whether it be a data center or multiple data centers on a campus. Uh, but having a team to come in and look at that, think about site logistics, where you’re gonna put cranes, where you’re gonna put a, uh, lunch tent for the craft? And oftentimes these craft are numbering 3, 4, 5, 6, 7,000 people. That are coming in to build these, these factories and build these, uh, data centers and things are running in parallel, which only adds to the, the complexity.  

[00:13:37] Jessica Busch: So, you’re building a mini city in these rural,  

[00:13:39] Jeff Leeper: essentially, and in many cases, frankly, the number of craft that we and people we have on the site actually outnumbers the number of people in the town or the city. Quite literally.  

[00:13:48] Jessica Busch: That paints quite a picture.  

[00:13:49] Jeff Leeper: It does.  

[00:13:50] Jessica Busch: Okay. And so what about, you know, what’s impacting? So we get the site, we get set, um, we get our mini city developed. What about the schedule? [00:14:00] Um, I mean, I’m assuming job safety in these more remote areas, what does that all looking like in this space right now?  

[00:14:07] Jeff Leeper: From a, from a job safety perspective, uh, what we’re seeing is that, uh, people are coming to the job site who may not have been on a semiconductor project, may not have been on a data center, and frankly may not have worked for companies that value safety. 

[00:14:21] The way that we do at The Cumming Group, WWPS and all of our affiliates, you know, safety is at, at its core, it’s the highest value. We’re talking about people who we want them, need them to go home safely every single day.  

[00:14:33] Jessica Busch: Right.  

[00:14:33] Jeff Leeper: So, the at its core, our programs and our leadership are focused on ensuring that just that they do go home safely every day. 

[00:14:41] Tom Vanelli: I, I would, I would add, I mean, I’ve, um, prior to joining Cumming Group, I spent 15 years roughly with a general contractor. Um, and it, it really is, it’s zero accidents. That is the only acceptable number. Uh, everybody goes home, everybody comes to work. There’s no injuries, there’s no accidents. You have to have that philosophy and you have to believe that that’s attainable, because if you don’t believe that’s attainable, then you’re doing a disservice to to everyone out there. 

[00:15:07] Jessica Busch: Right? And then it’s not gonna happen.  

[00:15:08] Tom Vanelli: And it’s not gonna happen. No. You have to strive for it.  

[00:15:11] Jessica Busch: So, when we’re, we’ve got site selection. How about these, this, this space requires a lot of power, as we’ve talked about. Briefly, what comes down to when we’re talking about power planning and what creative solutions are you, the owners, how are we getting to these, these places, um, with the, the power needs that are just so critical?  

[00:15:37] Tom Vanelli: I’ll, I’ll jump in on this one. Um, I, I, we’re seeing several things right now. Um, and I’ll touch on some different, uh, different avenues and maybe, maybe Jeff will chime in as well. But, uh, nuclear is first. 

[00:15:50] Jessica Busch: Mm-hmm.  

[00:15:50] Tom Vanelli: Uh, we’re seeing some of the hyperscalers are engaging to restart nuclear power plants that have been shut down. Uh, so we’re looking at creative solutions, or we’re [00:16:00] seeing the industry look at creative solutions like that to make sure that we are utilizing power as effectively as we can. Uh, I think the second piece of this is, uh, honestly, you, you have now folks looking to build their own power plants. 

[00:16:13] Jessica Busch: Hmm.  

[00:16:14] Tom Vanelli: Uh, you have owners and developers that say, Hey, we cannot go to the grid and get power. We need to build our own power plant and we’re gonna do it either, you know, we’ll probably do it behind the meter. It may be off the grid. But, that is another way that is, uh, we’re helping to, to ensure there’s enough power out there. 

[00:16:32] Because if you look quite frankly, and I I mentioned it earlier, uh, roughly a hundred gigawatts at least, that’s in development right now. That number probably changes daily. Uh, there’s not that amount of power out there, right? So there has to be a solution somewhere and the solutions are coming in the form of, uh, restarting nuclear power plants. 

[00:16:50] You know, doing your own bespoke, if you will, solutions on, uh, whether it be renewables, whether it be natural gas on your own, on your own property. [00:17:00] And like I said, maybe that’s behind the meter. Maybe that’s off the grid. Um, and you know, there’s also renewables that play into that. Uh, and maybe, maybe I’ll let Jeff touch on the renewable space. I know that’s close to his, his heart.  

[00:17:10] Jessica Busch: Mm-hmm.  

[00:17:11] Jeff Leeper: Yeah, absolutely. And I think all of what you touched on is a hundred percent spot on, uh, the sustainable energy IE, you know, wind turbines, um, solar, those two alone right there, you can see they’re solar farms are, are coming up all over the place, but they’re still a very small amount. 

[00:17:28] The number of solar panels required, number of of wind turbines required to generate the kind of power that Tom spoke about. You know, it’s really astonishing. You start to think about, you know, you’re powering cities, the equivalent of cities, you know, major cities, you know, Seattle, start talking about LA or other, you know, cities where the amount of power that’s being consumed by data center, by semiconductor is off the chart. 

[00:17:50] So, I think it’s gonna be a combination of all the above. And, uh, the industry term right now is bringing your own power, BYOP, and, uh, seeing that pop up all over the place actually. And so, uh, where there isn’t reliable power. Uh, certainly in semiconductor or data center, both require a reliable, stable power supply that doesn’t vary ’cause it will affect the operation of the facilities. And so each of those, um, uh, companies that are out there are looking for and trying to secure the power, both from a developer’s perspective or from an owner’s perspective. And again, as I said earlier, it’s, it’s all about land power permits and in many cases, water as well. So, having that secured is essential.  

[00:18:32] Jessica Busch: So I’m gonna stop you guys right there because the next kind of area I wanna touch is about third party developers and that land power permits topic ’cause it is a pretty big one. So let’s take a pause right here if that’s okay, and we’ll pick this conversation back up for part two. 

[00:18:49] Jeff Leeper: Ja visst.  

[00:18:52] Brad Ducey: Check back in a few weeks as we continue our deep dive into data centers, semiconductors, and advanced technologies with insights from Jeff Leeper and Tom Vanelli. And don’t forget to subscribe to the Construction Insiders Podcast, so you are notified as soon as new episodes go live.