Data Centre Build and Fitout

Project Overview

One of the largest global data centre providers began construction on their hyperscale data centres at Huntingwood, NSW and Derrimut, VIC in 2016. The developments involved the phased construction and progressive fit-out of dozens of data halls with a combined total capacity of more than 100MW over a three-year period. During this time, the global data centre provider went from a start-up to the largest data centre provider in Australia.

TBH’s Role

TBH was engaged by a consortium of financiers to undertake a due diligence review, to determine whether they should invest in the then, start-up business. Given the need to be first to market in the highly competitive data centre space, TBH had to respond to the brief in incredibly challenging timeframes.

TBH was responsible for specifically addressing the following:

Cost and Programme

• Provide an opinion on the adequacy and achievability of the programme. As a value-add, TBH was able to reduce risk to the delivery timeframes by recommending modifications to the proposed construction delivery methodology.

Contractors and Suppliers

• Interview and assess the suitability of contractor/s and suppliers and provide an opinion as to their appropriateness to undertake the works
• Visit the supplier’s manufacturing facilities in China to provide independent assurance of final factory testing before delivery to the site

Risks and Interfaces

• Assessment of measures proposed (and potential enhancements) to allow construction upon undeveloped portions of the site that were immediately adjoining operational data halls. This was a key enabler for the owner to undertake a phased construction methodology
• Scenario analysis and quantitative risk modelling techniques to validate adequacy and application of contingency in both dollars and days
• Identification of key risks as well as potential mitigants from a physical, environmental, technical and commercial perspective

Commercial Review

• TBH’s wealth of experience derived from acting on behalf of clients in construction disputes allowed TBH to consider gaps in the commercial structure and recommend amendments to limit commercial risks for our clients
• This industry knowledge also enabled TBH to highlight where key contractual clauses such as warranties and liquidated clauses were out of alignment with industry norms and might otherwise misallocate risk

The TBH Difference 

TBH’s review enabled the financiers to understand the risks associated with the project, both qualitatively and quantitatively.

As the data centre organisation was a ‘start-up’ business when TBH was initially engaged, TBH’s experience was invaluable to proactively work with the relevant parties to identify risks/gaps in capability and develop mitigations to work around these problems.

The financiers benefited from TBH’s extensive experience in the delivery of these complex buildings. The end result was the delivery of phased developments consistently on time and budget, with all parties highly satisfied.

To find out more about TBH’s Independent Technical Advisory experience, please visit the Strategic Advisory Services page.