Long Lead Items in Construction: What Data Center Projects Are Teaching PMs

It's been almost six years since I worked in design and construction, but I still keep a close eye on the industry. Construction was my first love, and I wouldn't be surprised if I found my way back to it one day. Lately, one story shows up in almost everything I read: data centers.

Cloud infrastructure and AI are growing faster than the buildings that support them, and that pressure is landing squarely on construction teams. For construction PMs, data centers bring their own set of rules, and the biggest change is how long it takes to get critical equipment on site. Managing long lead items in construction used to mean ordering early and building in a buffer. On data center projects, some equipment takes longer to arrive than it takes to design the building.

This post is for the construction project managers. Below, I'll cover what data center projects look like, why long-lead items now drive the schedule, and how to plan, reserve, and track them.

Why Data Centers Are Landing in Construction PMs' Pipelines

The Demand Behind the Boom

• AGC and Sage's 2026 outlook found that contractors lowered their expectations for the year overall, with the notable exception of fast-growing demand for data centers and power facilities. AGC News

• ENR reports that its Top 400 Contractors grew revenue 11.8% to $671.4 billion in 2025, driven largely by data center work and the power and infrastructure needs that come with it. Engineering News-Record

• Within that list, the telecommunications market, which includes the data center buildout, grew 86.4% from 2024 to 2025 and passed $100 billion in revenue. Engineering News-Record

Who's Building Them

• General contractors: Building Design+Construction's 2025 ranking of the largest data center contractors is led by HITT Contracting, Holder Construction, DPR Construction, Clayco, Turner Construction, Whiting-Turner, Fortis Construction, JE Dunn, and Mortenson. Building Design+Construction

• Engineering firms: The top data center engineering firms in the same report include Burns & McDonnell, Jacobs, WSP, HPE Sustainable Data Center Modernization, Woolpert, Kimley-Horn, Olsson, and EXP. Building Design+Construction

• Owners: Hyperscalers such as Amazon, Alphabet, Apple, Meta, and Microsoft are driving the buildout. Engineering News-Record

How Data Centers Differ From a Typical Commercial Build

• Power decides the site. Grid capacity near a site usually determines where a project goes more than land cost does, because it caps how much power the facility can have. OpenSpace

• Redundancy is designed in from the start. Engineers size power, backup, and cooling systems so that no single failure can take the facility down. OpenSpace

• Timelines are long. From site selection to commissioning, a data center typically takes three to six years, with vertical construction making up roughly 12 to 36 months of that. SmartBarrel

• Commissioning is intense. Integrated systems testing runs power, cooling, and controls together under load, and it's often where defects from earlier phases come to light. OpenSpace

Long-Lead Planning Isn't New, but the Scale Is

Every construction PM has a long-lead story. When I worked in hospitality, furniture lead times were something we always had to plan around. Later, I worked for a company involved in building the new JetBlue hangar at Orlando International Airport (MCO), and we had to factor the lead times for some of the specialty equipment into our planning from the start.

The principle is the same on a data center project. What's different is the scale:

• Lead times are measured in years instead of weeks or months

• One late piece of electrical equipment can hold up energization for the entire facility

• The equipment you need is in demand across multiple industries at once

• Procurement decisions often happen before design is finished

What Counts as a Long-Lead Item on a Data Center Project

The electrical package is where the longest waits are. Recent lead times reported by a commercial GC, based on active manufacturer slot reservations:

• Medium-voltage switchgear (15kV class): 52 to 80 weeks Terrapincg

• Pad-mount distribution transformers: 40 to 65 weeks Terrapincg

• Substation transformers (5 to 50 MVA): 75 to 110 weeks Terrapincg

• Generator step-up transformers above 50 MVA: 100 to 150+ weeks Terrapincg

• Large diesel generators above 3,000 kW: 90 to 110 weeks IndustrialSage

At the extreme end, some operators are waiting as long as 210 weeks for transformers. Keep in mind that actual lead times vary by manufacturer, voltage class, and quantity. Data Center DynamicsTerrapincg

Why Lead Times Keep Stretching

• Transformers and switchgear come from the same limited pool of factories whether they're going to a data center, a manufacturing plant, a renewable energy project, or a utility. Environment+Energy Leader

• Reuters has reported that some high-capacity transformers now take three to four years, compared with about a year for certain equipment in 2020 and 2021. Environment+Energy Leader

• Shortages of specialized workers are also causing delays that are close to unique to data center construction. Data Center Dynamics

Why Long-Lead Items Now Drive the Schedule

Procurement Starts Before Design Is Finished

• For hyperscale data centers, switchgear and transformer orders should go in at land close, six to twelve months ahead of groundbreaking. Terrapincg

• That means locking down voltage class, fault rating, and footprint early.

• Developers in multiple industries now treat transformer and switchgear procurement as a critical-path item alongside financing and permitting, rather than a detail to handle later. Environment+Energy Leader

One Energization Date Isn't Enough

When a transformer takes 24 to 48 months, equipment availability can outweigh the construction timeline itself. A realistic schedule breaks the power path into separate milestones: Build

• Utility application, load study, and facility study

• Service agreement and equipment order

• Factory acceptance testing and delivery

• Installation, energization, and commissioning

Strategies for Managing Long-Lead Procurement

Reserve Manufacturing Slots Early

• Most manufacturers will hold a production slot for a deposit of 10% to 30% of the equipment cost.

• Skipping the reservation can add another 8 to 16 weeks to the quoted lead time once the order is finalized.

Specify by Configuration, Not Manufacturer

• Define the technical requirements first, then bid across multiple manufacturers based on who can deliver soonest instead of only who's cheapest. Terrapincg

• Document the specs in a way that lets you pivot between manufacturers without redesigning

Approve Alternates Before You Need Them

• Relying on one supplier is risky right now; even when generators are specified from one brand, it helps to identify acceptable alternates that can step in if delivery slips. Terrapincg

• Get owner and engineer sign-off on alternates during preconstruction, not in the middle of a delay

Plan for Equipment That Arrives Before the Site Is Ready

Ordering early solves one problem and can create another. If equipment shows up before its foundation, access, or crane window is ready, you'll need a plan for:

• Where the equipment will be stored and who is responsible for it while it waits

• Any storage conditions the manufacturer requires

• How the delivery sequence lines up with site readiness

Keep Submittals From Becoming the Bottleneck

• Fabrication doesn't begin until release to manufacture, which can land a full quarter after the purchase order. Globaldatacenterhub

• Prioritize submittal reviews for long-lead packages so approvals don't eat into your float

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How to Track Long-Lead Items

What Your Procurement Log Should Capture

Each of these milestones needs its own tracking: Globaldatacenterhub

• Purchase order date

• Submittal approval

• Release to manufacture

• Factory slot confirmation

• Factory acceptance test

• Ship date

• Site-need date

I'd add two more columns: the float between expected delivery and site-need date, and a named owner for each item.

Make Your Tracker Trigger Decisions

A procurement log is only useful if it drives action. When a lead time threatens the schedule, the tracking should prompt a real decision: order now, reserve capacity, look for alternate vendors, split the project into phases, redesign around equipment that's available, or walk away from the site. Build

Communicating Long-Lead Risk to Owners

Owners need to understand long-lead risk early, because it affects money and contracts, not just the schedule.

• Cash timing: Early equipment deposits shift when money goes out, and developers may have to commit capital before entitlements or a tenant lease are fully settled.

• Contract structure: When transformer availability is uncertain, lease agreements may need milestone conditions, delay provisions, or phased delivery assumptions. Bring your contracts and legal teams into these conversations early.

• Storage responsibility: Settle who owns and protects equipment that arrives ahead of the site

• Status reporting: Report long-lead items as their own section in owner updates rather than burying them in the overall schedule

Quick-Reference Checklist for Long Lead Items in Construction

Preconstruction

• Identify every electrical and mechanical item with a lead time over 40 weeks

• Lock critical specs early enough to order

• Approve acceptable alternates

Procurement

• Reserve manufacturing slots with deposits where possible

• Bid on delivery date as well as price

• Prioritize submittals for long-lead packages

Tracking

• Log each milestone from purchase order to site-need date

• Track float and assign an owner to every item

• Set decision triggers for items that start slipping

Owner communication

• Explain cash timing for deposits

• Flag contract implications early

• Confirm storage and delivery responsibilities

If data centers aren't in your pipeline yet, there's a good chance they will be. The PMs who understand how procurement drives these projects will be the ones owners want on their next build. I may be watching from the tech side for now, but I'll be cheering on every construction PM who takes one of these projects on.

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