Table of Contents
More Workers Means More Risk on the Jobsite
Energy Demand is Becoming a Limiting Factor
The Middle East Conflict is Disruption Material Flow and Pricing
Supply Chains are no Longer Independent Systems
Data Centers are Reshaping Local and Global Industries
Re-electrification of the U.S.: Why Data Centers Are Driving the Surge
The Data to Build Data Centers: Why Better Information Wins Projects
Additional Articles – Want to Learn More?
Work Breakdown Structure Research: What Makes a Good Plan?
Job Porosity Research: Identifying the Risk Factors for Project Financial Outcomes
Integration of AI Models in DCI Construction®
Proof of Concept AI Development in JPAC®
Project Likelihood of Total Profit Gain with AI Powered Bid Filtering
The construction industry is facing a
moment where opportunity and constraints are colliding.
The surge in data center development is
accelerating demand across labor, energy, and materials. Meanwhile, global
instability is disrupting how those resources are supplied. What once felt like
separate challenges are now compounding into a single, interconnected pressure
on project delivery.
Here’s how it’s showing up:
The
rapid expansion of data center projects is reshaping labor demand across the
construction industry. What was once a localized staffing challenge is now a
structural shortage in key skilled trades.
- The surge in data center
construction is placing sustained pressure on the skilled labor pool
- Competition for electricians,
mechanical trades and commissioning talent is intensifying across markets
This
is turning labor into a defining constraint on project delivery timelines and
execution. As a result, it is increasingly influencing timelines, cost
certainty, and how work is sequenced across portfolios. In a market defined by
sustained demand and limited capacity, labor availability is becoming a primary
factor in determining what can realistically be built and when.
Several
response strategies may be explored:
- Bringing labor from outside regions
or international markets to fill critical gaps
- Slowing or sequencing projects to
better align with the available workforce capacity
- Increasing prefabrication to reduce
on-site labor demand
- Investing in automation and
productivity enhancing construction methods, such as Agile Construction®
As workforce demand
increases, many projects are responding by adding more crews to maintain
schedules. However, higher jobsite density introduces new layers of operational
and safety complexity.
- Meeting
aggressive schedules often requires increasing workforce density on
already complex jobsites
- Adding
more workers in tight spaces creates greater coordination challenges and
elevates safety risk
Trade
stacking becomes harder to manage as jobsite density increases. This adds
strain on supervision, communication, and site logistics across the entire
site. As a result, strong safety programs and oversight become progressively
more important to maintain performance and reduce risk.
Data
centers are now one of the largest drivers of new electricity demand in the
construction pipeline. As a result, energy availability is increasingly shaping
when and where projects can move forward.
- Data
centers are driving a sharp increase in electricity demand across regions
- Power
availability is becoming a key constraint in project planning in delivery
What’s
changing?
- The
industry is being pushed towards re-electrification and shifting
infrastructure priorities
- Utilities
are playing a larger role in determining project feasibility and timelines
- Energy
access is becoming a gating factor for development, not just a
consideration
Currently, the instability tied to the conflict in the Middle East is putting pressure on one of the world’s most critical shipping corridors: the Strait of Hormuz.
- Disruptions
to key shipping routes are impacting the movement of energy and raw
materials
- Fuel
and transportation costs are becoming more volatile and difficult to
predict
What does this mean for
the construction industry?
- Material
pricing is harder to lock in and more apt to sudden shifts
- Procurement
planning must happen earlier, with added contingencies
- Sourcing
strategies need to diversify to reduce exposure to global disruptions
Labor
availability, energy capacity and material access are now tightly
interconnected. A disruption to one area can quickly cascade across multiple
phases of a project.
As a result:
- Project
timelines are increasingly exposed to external shocks outside direct
control
- Planning
must account for compounding risk, rather than isolated disruptions
- Agility
in execution is becoming a core advantage in delivery performance
The
rise of data centers is not just a construction trend, but a structural shift
in how economies and industries are organized. Their influence extends far
beyond the jobsite, both locally and globally.
Local Influence:
- Driving,
infrastructure investment, and increased demand for utilities
- Placing
new pressure on power grids, land use and overall reginal planning
Global Influence:
- Increasing
demand across energy and construction related industries
- Intensifying
competition for labor and materials
- Reinforcing
the interconnected nature of the industrial digital economy
Re-electrification of the U.S.: Why Data Centers Are Driving the Surge
Data center expansion
is accelerating electricity demand, turning power access into a key constraint
while amplifying labor and supply chain pressures. These forces are no longer
separate—they’re converging into a single challenge shaping project timelines
and feasibility. Read more: Re-Electrification
of the U.S.: Why Data Centers are Driving the Surge
When labor shortages, energy limits, and supply chain
volatility converge, project outcomes depend less on conditions and more on the
quality of information driving decisions. Higher-fidelity connected data
enables earlier risk detection and more reliable execution in complex
environments. Read more: The Data that Builds Datacenters
Additional Articles – Want to Learn More?
Work Breakdown Structure Research: What Makes a Good Plan? Using AI to Predict Project Outcomes Before They Start.
In construction, success is usually
measured after a project is complete. But what if you could predict outcomes
before work even begins? The takeaway from MCA’s research is simple: better
planning = better outcomes. High-performing projects start with plans that are:
- Clearly defined
- Structured around the work (not just
hours)
- Measurable and actively managed
Tools like a Work Breakdown Structure
(WBS) help define scope, align teams, and create a reliable roadmap for
execution. AI can also help improve project performance when used in the right
circumstances. MCA, Inc.’s research shows that applying AI to project data
allows teams to:
·
Predict
outcomes early in the project
·
Identify
risks before they escalate
·
Make
more informed, proactive decisions.
The bottom line is:
contractors who adopt structured planning and data-driven tools will be better
positioned to improve performance, reduce risk, and stay competitive.
Job Porosity Research: Identifying the Risk Factors for Project Financial Outcomes
Most construction projects start with a solid plan and a healthy margin, but many still end up underperforming financially. MCA, Inc.’s research points to a key concept: job porosity, or the hidden (and common) risk factors that allow profit to slowly slip out of a project.
The more “porous” a project is, the more likely it is to
experience profit fade. Common causes of project fade include:
- Gaps between
estimate and reality – assumptions don’t match field
conditions
- Lack of alignment – estimating,
operations, and accounting aren’t working from the same plan
- Poor data quality – inconsistent or
unreliable reporting
- Unrecognized
variability
– treating every project as “unique” instead of understanding patterns
Project outcomes aren’t random; they’re driven by identifiable factors. Job porosity gives contractors a way to spot risks earlier and respond with better decisions and risk prevention, whether that’s adjusting a bid or managing a project more proactively.
DCI Construction®, (Digitalization Commonization Interconnection®) the flagship construction ERP developed in house by MCA, Inc. is making strides towards the integration of Artificial Intelligence to improve reliability and efficiency for the project manager and field. The power of DCI Construction® in interconnecting data across all areas of the project, combined with AI models built from 30 years of research, will provide one of the most powerful all-in-one enterprise level management software’s available.
By leveraging post-2021 project data in JPAC® (Job Productivity Assurance and Control), MCA, Inc. developed a machine learning proof of concept to predict end-of-job productivity earlier and with greater accuracy while maintaining JPAC®’s current reliability. Using over 11,000 data points across 470 projects, the AI model improved productivity modeling accuracy by more than 68%, demonstrating that data-backed AI can move beyond educated guesswork and expand its use in Agile Construction®, enabling teams to:
- Recognize and
predict patterns based on labor code performance
- Predict financial
and productivity performance outcomes early
- Provide actionable
insights for project teams based on the statistical patterns
Built upon the research
conducted by MCA, Inc., DCI Construction® will house an AI driven
bid filter aiming to help project managers predict performance and help decide
if they should bid a job. By utilizing historical data and inputs, DCI
Construction® will be able to predict the likelihood of winning the
bid.
There are twelve sources that the AI
model will use to make a bid prediction. Some of these include:
- Project manager
average months – Assessment of experience
- Project location –
Based
on state
- Overhead ratio – Burden & other
cost divided by total cost
- Profit – Estimated at time
of bid and as a percentage of the contract
- Timeframe – Estimated time of
the project
