Delays in data centre construction cost developers nearly USD15mn per month, finds STL Partners
3 min read- Data centre construction projects can cost an extra USD14.2mn per month if delayed
- Internal rate of return (IRR) can suffer an excess of 25% decline due to holdups
- The root cause lies in fragmented, manual reporting
- Effective reporting makes the difference between hitting targets and wiping out returns, states consultant Jonas Topp-Mugglestone
LONDON – 27 March 2025 – Delays in data centre construction can cost developers as much as USD14.2 million per month, according to the latest findings from research and consulting company STL Partners. This calculation is based on a typical 60 MW data centre in the US.
In its new report, ‘Preventing multimillion dollar data centre losses through reporting’, the company discovers that such delays are not only hitting the bottom line, but they can also slash projected internal rate of return (IRR), placing major pressure on investor confidence and future funding. In an indicative scenario for a 60 MW data centre construction project, the IRR is 17.1% if delivered on time, falling to 15.5% in the case of a one-month delay and to 12.6% if delayed by three months.
The true cost of a one-month delay of an indicative data centre project
According to STL Partners, the main cause for delays is a lag between issues arising and being detected which is driven by fragmented, manual reporting.
Therefore, the report highlights structured, real-time reporting as key to alleviating such challenges, as it is “the most scalable, cost-effective tool for avoiding these losses”.
Furthermore, it suggests that effective reporting ensures early risk detection, faster issue escalation and real-time decision-making, which can bridge the gap between disruption and response.
“Data centre projects don’t simply fail because problems arise – they fail because teams see these issues too late. With delays costing data centre developers more than USD14 million a month, reporting isn’t just operational hygiene – it’s the difference between hitting targets and wiping out returns,” claims Jonas Topp-Mugglestone, consultant at STL Partners and author of the report.
Furthermore, frameworks that are standardised and automated give project managers the visibility and the control they need, preventing minor issues from snowballing into multimillion-dollar holdups.
“Delay isn’t just a construction risk – it’s a financial one. For investors, even a few weeks can destroy IRR and complicate funding models. Better reporting protects both delivery timelines and investor confidence,” adds Topp-Mugglestone.
Find out more insights from the report here.
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STL Partners is a leading research and consulting company that focuses on the telecom industry and adjacent markets by helping telcos and their partners innovate, grow and stay ahead of the competition.
