Cooling Innovation: How New Technologies Are Reshaping Data Centre Construction

Cooling has become one of the most significant cost drivers in modern data centre delivery. As rack densities increase and sustainability requirements tighten, traditional cooling strategies are no longer sufficient, and new technologies are reshaping not only how data centres operate, but how they are costed, procured, and delivered.

For cost managers and project teams, cooling is no longer a supporting system. It is a primary commercial and delivery consideration that must be actively managed from early design through to final account.

Cooling as a Cost-Critical System

Cooling infrastructure now represents a substantial proportion of overall project capital expenditure. Decisions made early in design directly influence equipment costs, construction complexity, programme duration, and long-term operational efficiency.

Key cost drivers include:

• Specialist installation resources
• Greater commissioning and testing scope
• Increased structural and spatial requirements
• Higher specification plant and specialist equipment
• Interface risk between cooling, power, and control systems
• Geographical origin of the equipment, including import fees, duties. taxes incl. FAT/FWT testing costs.

Without early commercial oversight, cooling strategies can introduce unplanned cost escalation and programme risk.

New Technologies and Their Commercial Implications

The adoption of liquid cooling, hybrid systems, and heat recovery solutions introduces different cost profiles compared to traditional air-cooled designs. While these technologies may reduce operational costs over the asset lifecycle, they often carry higher upfront capital costs and more complex delivery requirements.

From a cost management perspective, this requires:

• Early benchmarking of alternative cooling strategies
• Whole-life cost analysis rather than capital cost comparison
• Clear understanding of procurement lead times and market capacity
• Alignment of performance requirements with commercial reality

Failing to assess these factors early can result in late-stage redesign, value engineering under pressure, or compromised performance outcomes.

Impact on Procurement and Cost Certainty

Cooling innovation increases reliance on specialist vendors and long-lead equipment. Traditional procurement sequencing can undermine cost certainty if cooling packages are left too late in the process.

Effective cost control relies on:

• Parallel procurement of critical cooling packages
• Clear definition of scope boundaries and interfaces
• Robust commercial terms around performance, testing, and warranties
• Early engagement with cooling suppliers to inform budget development

These measures help protect budgets from inflationary pressure, supply chain volatility, and late commercial surprises.

Programme Risk and Its Cost Consequences

Advanced cooling systems often sit on the critical path, particularly during commissioning and integration with power and controls. Programme delays at this stage quickly translate into cost exposure through extended preliminaries, delayed revenue generation, and increased contractor claims.

From a commercial perspective, managing this risk requires:

• Realistic allowance for commissioning durations
• Early identification of interface and integration risks
• Clear accountability for system performance
• Close alignment between cost forecasts and programme status
• Robust Tender Event Schedule allowing accurate dates for tendering & contract negotiations

Where cooling strategies are not properly integrated into programme planning, cost overruns are rarely far behind.

Lifecycle Value and Commercial Decision-Making

Cooling innovation highlights the importance of moving beyond lowest capital cost decision-making. The commercial case for advanced cooling often lies in improved energy efficiency, reduced operational costs, and enhanced asset resilience.

Cost managers play a critical role in:

• Protecting value through disciplined change control
• Maintaining alignment between design intent and commercial outcomes
• Supporting informed trade-offs between capital and operational expenditure
• Ensuring assumptions around efficiency and performance are evidence-based
• Coordinating the tender process to identify the Most Economically Advantageous supplier

This approach ensures that innovation delivers value rather than unintended cost exposure.

Cooling as a Strategic Cost Management Consideration

Cooling is no longer a technical detail to be resolved late in the design process. It is a strategic cost management issue that shapes budgets, programmes, and commercial outcomes.

Projects that integrate cooling innovation early, supported by robust cost planning and procurement strategy, are better positioned to maintain cost certainty and delivery predictability. Those that do not face increased risk of budget escalation, procurement delay, and commercial dispute.

As data centre construction continues to evolve, cooling innovation will remain a defining influence on cost and delivery performance. Managing it effectively requires early engagement, whole-life thinking, and disciplined cost control embedded throughout the project lifecycle.