In this white paper we look at some of the key considerations when providing critical power systems to hyperscale data centres in an Owner Furnished Contractor Installed (OFCI) procurement environment. We look at;
Today Data Centres are at the forefront of demand in the construction sector, with investment continuing apace and expected to remain so for some significant time into the future. This growing demand is lead largely by the;
In this environment of rapid growth, speed of delivery of infrastructure is key if the Data Centre owner wants to be successful. It is a race with contracts to take space for the provision of data services being awarded to the developer who can deliver infrastructure at the fastest possible rate. We know that both during and in the months after COVID, the sourcing of both materials and skilled labour was tough and, in many cases, remains so today, with construction timelines principally built up around things such as
To meet the demand and speed of delivery, providers of data services space need to expand beyond traditional delivery models and explore solutions that both fit their construction and operational needs.
The traditional construction procurement model which has been used for decades to build infrastructure projects both large and small including data centres is what we now call CFCI – Contractor Furnished, Contractor Installed. It is a model that is still in wide scale use today including to build data centres of all sizes. This procurement model is where the owner / developer contracts individually with the design team, consultants and construction company in a linear process as the planning, design and construction phases of the project develop. The method brings with it many advantages such as
The CFCI model also comes with its disadvantages, including things such as:
There are of course also a number of hybrid versions where, for example, client tenders to ensure best price then up grades supply to his preferred choice taking the extra cost hit.
Is there an alternative to the CFCI procurement model? The answer is of course yes. As we considered earlier, there are hybrid versions of CFCI and whilst very different the OFCI alternative can fit well into many project environments none more so than hyperscale data centres, however it brings with it some challenges.
So, what is the Owner furnished contractor installed model – OFCI? This method of procurement is where the developer/ owner / the end client directly procures (purchases) the high-cost capital equipment or long lead time plant with the intention of then issuing it to the contractor for installation. The owner / developer then tenders the construction contract in the usual way with the successful contractor and fit out partners between them taking on full design responsibility and all project completion liabilities.
This is the period of maximum risk for the project as
If this period is not managed well then significant time can be lost as well as money, therefore the owner/developer’s decision to directly procure equipment should be led by the overarching procurement strategy of his organisation. It is important though that where the OFCI strategy does not meet project or organisational requirements, it can also add significant risk to the project.
Here then are some of the advantages that the client / owner / developer of using this model are:
There are of course disadvantages to the use of this model and this includes things such as:
With many of the major hyperscale builders / owners based in the US; the use of an OFCI procurement strategy can bring with it a number of challenges for the supply chain especially when this strategy deployed on their estate outside of the US. For example;
Today we see modularisation being used widely across the UK and Europe and in a number of different sectors for example in house building, healthcare and in the delivery of some sizable M&E infrastructure projects. These ideas are also now being used in hyperscale data centre builds too; mostly in order to speed up the construction process. So how can and does modularisation help? Modularisation of parts of a Data Centre build can bring a time and cost advantage which can be attributed to several factors, including:
The idea of modular construction can extend the concept of supply chain pre-positioning beyond just the critical electrical and HVAC equipment into other areas of the building itself. A building can be defined as a number of functional subsets (the essence of making it modular). This allows Data Centre owners to take scope out of onsite construction and move it to offsite fabrication both broadening and extending the scope of the OFCI packages. The OFCI packages can be designed ahead of time or designed as an owner standard, all of which works to reduce the risk particularly in the period after the construction contract is awarded and the project design finalised.
Pre-fabricating a standard modular structure and integrating it with standard critical IT, electrical or mechanical equipment in a manufacturing setting allows those modules to be pre-positioned for deployment to any region in a Data Centre owner’s portfolio in a fraction of the time. This approach also;
One key benefit is having the opportunity to undertake extensive offsite testing of the modular systems for example the entire power train to level 3 status prior to shipment. In the first case of its kind this could be to level 4 status. This can save a significant amount of time. Modular construction can also;
As a supplier of critical power systems, I guess you would expect me to look at how modularisation can bring advantages to clients in the OFCI environment. It is possible to fit all elements of the critical power train across two or three containers depending on rating configuration and scope of requirement. This offers a significant reduction in the space needed to deploy the equipment as a number of different module configurations are possible, for example on a two or three deck gantry configuration.
Using this approach means that the entire power train is available as a “Plug and Play solution”.
What could a one stop shop solution include? The design, fabrication, fit out, FAT, gantry system, site installation, off load positioning, external busbar and cable, commissioning and SAT. It can also include partial or full procurement by the vendor depending on client preference, which again comes back to the procurement model the client is using. Additionally;
We all know that knowledge, experience and expertise play an important role in ensuring that projects of the type we are talking about here all come together. Sometimes it is just those little things, an informed input here, a small tweak there at the design can make all the difference. This is so important in the OFCI environment when the client is very reliant on the design team to ensure it is right and it works. We conclude this paper with just a couple of examples where an experience design team can help optimise the design and save cost.
These are just a couple of small examples of where that knowledge and experience can pay dividends for the client.
Business Consultant
WB Power Services Ltd