The video discusses the booming data center construction market in the UK and US, highlighting challenges such as labor shortages, material costs, and outdated tracking methods that create a “perfect storm” for the industry. It emphasizes innovative solutions like prefabrication and Kojo’s technology platform, which empowers contractors with real-time material tracking to improve efficiency and address critical supply chain issues.
The discussion begins with an optimistic view of the UK as an emerging market for data center construction, highlighting its untapped potential. The UK boasts a highly talented workforce, world-class universities, and groundbreaking research institutions like DeepMind, which have already produced significant AI advancements. The speakers express enthusiasm about major tech companies such as Microsoft and Google investing in the UK, fostering closer collaboration between the UK and the US in this sector.
Turning to the United States, the scale of data center construction is described as enormous, with $40 billion invested in 2023 alone and projections to reach $65 billion by 2030. The primary challenges in this massive build-out are securing materials and skilled labor, particularly electricians, amid a labor shortage exacerbated by immigration policies. The conversation emphasizes the critical role of ensuring that contractors, who are already hard to find, have the necessary parts and materials on-site to maintain progress.
A significant bottleneck in US data center construction is the reliance on outdated methods such as pen and paper or Excel spreadsheets to track materials and schedules. This inefficiency is compounded by a shortage of 500,000 construction workers and a 44% increase in material costs since before the COVID-19 pandemic, creating what is described as a “perfect storm.” The complexity of coordinating financing, site selection, utility connections, and power supply further complicates the process, although improvements in site readiness and interconnection have accelerated build times for smaller data centers.
Prefabrication and modular construction are highlighted as promising solutions to these challenges, allowing parallel building processes rather than sequential ones. This approach can speed up construction and improve efficiency. Additionally, many companies leasing data center capacity, rather than owning the facilities, recognize that their involvement helps improve planning and execution, benefiting the entire ecosystem. The conversation underscores the importance of advanced planning and having all components and interconnection blocks ready to enable contractors to work more effectively.
Finally, the focus shifts to Kojo, a company that has raised $94 million and works with 600 construction companies to empower contractors, especially electricians and mechanical workers who have historically been underserved by technology solutions. Kojo aims to provide these tradespeople with tools to track materials and monitor project progress in real time, addressing their biggest pain points. The company is experiencing strong investor interest as the market recognizes the critical importance of infrastructure and the need for better supply chain visibility in the data center construction industry.