From Ground to Cloud: Overcoming Construction Delays in Middle East Data Centre Projects

As the Middle East rapidly evolves into a digital innovation hub, the demand for robust data infrastructure has increased. Governments are pursuing smart city initiatives, expanding e-government services and promoting digital economies as part of their national development visions, including Saudi Arabia’s Vision 2030, the UAE’s Digital Government Strategy and Qatar’s Smart Nation program. This digital shift, coupled with accelerated cloud migration by enterprises and public sector institutions, has triggered an increased need for robust locally-hosted data services, driving a boom in data centre construction.

Building data centres in the Middle East presents unique challenges. Harsh climate conditions including extreme heat, sandstorms and water scarcity require highly resilient cooling and power systems. Regulatory requirements vary widely across the region, especially around data sovereignty, land use and import restrictions for specialised equipment. These factors can significantly impact construction timelines and legal exposure, making early risk assessment essential. Contractors and consultants must engage local authorities early and incorporate sufficient contingencies into their contracts.

Design responsibility

A common cause of delay in projects in the Middle East is late-stage design changes and incomplete client specifications. These projects often adopt a fast-track approach, beginning construction before finalising designs. While this is intended to accelerate delivery, it often leads to evolving requirements mid-project, causing significant rework, system misalignment and increased coordination complexity, ultimately leading to time and cost overruns.

A related contributing issue is the lack of early involvement from key stakeholders such as IT, MEP, or security teams. Without their input during initial design stages, there is a high risk of disconnect between the built infrastructure and the facility’s operational needs, triggering design revisions later in the programme.

To mitigate these issues, contracts must clearly define roles, design responsibilities, change control procedures and approval workflows. Early stakeholder engagement can help align expectations, minimise scope creep and reduce the risk of rework and delay. Digital tools such as Building Information Modelling (“BIM”) support detailed clash detection and design coordination before construction begins, improving collaboration between architects, engineers, and subcontractors.

Supply chain

Supply chain challenges are common in Middle East data centre projects, especially with long lead times for imported equipment like e-houses; prefabricated modular buildings housing electrical and automation equipment. Delays due to backlogs, customs clearance and regional compliance checks can halt entire project phases without early procurement and accurate planning.

Negotiating realistic timelines and clear scope definitions is key. Overly optimistic schedules that ignore procurement lead times should be avoided. Precise scope definition, particularly around client-supplied equipment will reduce ambiguity and potential disputes. One of the most effective approaches is early procurement planning, particularly for the critical precision cooling units, UPS systems and backup generators.

Regulatory considerations

Obtaining planning and construction permits in the Middle East can be complex and varies between jurisdictions. Some countries have streamlined processes for industrial or technology infrastructure, while others require multiple layers of approvals from municipal, environmental and telecommunications authorities. Delays often occur before construction begins, especially when local authorities have limited experience with hyperscale or modular designs, creating bureaucratic hurdles.

Data sovereignty laws are increasingly shaping data centre design and operation. Many Middle Eastern governments mandate that sensitive data such as government or citizen information be stored within national borders. This drives demand for local data centres but also adds compliance complexity, including documentation and security standards that contractors must meet. Additionally, some markets require local partnerships, labour quotas, or import restrictions on specialised equipment, influencing procurement strategies and contractual arrangements. Awareness of these factors early in the project lifecycle allows contractors to plan accordingly and mitigate the risk of regulatory non-compliance.

Commissioning and handover

Unlike typical commercial buildings, data centres house IT infrastructure that must operate continuously, with little to no tolerance for failure. Malfunctions in power, cooling, fire suppression or backup generators can cause severe service disruptions and financial losses. Data centres therefore require stringent handover and commissioning protocols, often involving multiple “levels” of testing and client validation. Failure to meet these requirements on time can lead to withheld payments or disputes.

To mitigate the risks associated with delayed sign-offs or non-compliance, early coordination and planning are critical. Contractors should develop a detailed commissioning strategy that integrates with the main programme, including factory acceptance testing (FAT) and digital QA/QC platforms for systematic verification. Clear role definitions and staged reviews help ensure alignment across delivery teams and stakeholders, reducing the risk of miscommunication and delays.

Conclusion

The Middle East’s data centre boom presents a significant opportunity for the construction industry but also comes with unique challenges that demand both technical expertise and savvy contract management.

Proactive engagement in contract negotiation, clear definition of roles and responsibilities and strategic risk allocation will offer some protection against costly disputes and delays. Coupling this with practical measures, such as early procurement and use of digital technologies should ensure projects stay on track despite the region’s environmental and logistical hurdles.

Ultimately, parties who understand and manage both the physical construction and contractual landscapes will be best positioned to deliver data centres that power the region’s future, on time and on budget.

If you have any questions or require further advice, please contact Claire Miller and Natalie Ledger.