Data Center Construction: Mitigating Safety Risks for Contractors in a $100 Billion Market

By: Greg Perruzzi Guy Silvey

Data center construction projects are booming, driven by the increasing demand for digital infrastructure to support cloud computing, artificial intelligence, and data storage. These projects aren't only highly profitable but also incredibly complex, requiring precision and expertise to meet tight deadlines and operational standards. With their complexity comes significant risk, particularly when it comes to worker safety. The high density of workers, specialized equipment, and unique job site exposures create an environment where safety challenges are amplified. Understanding these potential threats and implementing effective mitigation strategies is essential to protect workers and reduce the overall total cost of risk. By addressing these safety concerns proactively, organizations can ensure smoother project execution and long-term operational success.

Quick facts:

• In January 2026, data center construction starts in the United States reached a historic high of $25.2 billion.¹
• With more than $100 billion earmarked for new builds in 2026, data centers represent the largest revenue source in the construction sector.
• The average data center project's value has grown to $633 million, a 70% year-over-year increase.
• Construction costs now exceed $1,000 per square foot, nearly double the levels seen just two years ago.

Unique Job Site Exposures

Data center construction sites present unique safety challenges due to the complexity of the projects, the high density of workers, and the specialized equipment involved. Some of the biggest safety concerns on sites include:

1. Electrical hazards: Data centers require extensive electrical systems, including high-voltage installations, which pose risks of electrocution, arc flashes, and electrical fires.

Mitigation: Mitigating electrical hazards requires a proactive approach that combines worker training, proper equipment handling, and adherence to safety standards. Workers must be trained to recognize electrical hazards, such as exposed wires, overloaded circuits, and improper grounding, and should understand how to safely operate and maintain electrical systems. Only qualified personnel should handle high-voltage installations, and they must use appropriate personal protective equipment (PPE), such as insulated gloves, arc-rated clothing, and face shields, to protect against electrocution and arc flashes.

Engineering controls are essential to minimize risks. This includes ensuring that all electrical systems are properly grounded, using ground fault circuit interrupters to prevent shocks, and regularly inspecting and maintaining electrical equipment to identify and address potential issues. Lockout/Tagout (LOTO) procedures should be strictly enforced to ensure that electrical systems are de-energized before maintenance or repair work begins. Additionally, clear labeling of circuits and electrical panels helps workers identify and avoid live systems. Emergency response plans, including access to first aid and fire suppression systems, should also be in place to address incidents quickly and effectively.

One of the most critical risk periods on data center projects occurs during commissioning and phased energization. As electrical systems, UPS infrastructure, switchgear, and backup power systems are brought online while construction activities continue, contractors face increased exposure to live electrical systems, temporary power conflicts, incomplete LOTO boundaries, and overlapping trade activities. Robust commissioning safety plans, energized work permitting, and strict coordination between contractors, commissioning teams, and owners are essential to reducing risk.

2. Working at heights: Construction of multistory data centers often involves working on scaffolding, ladders, or elevated platforms, increasing the risk of falls.

Mitigation: Risk mitigation associated with working at heights requires a combination of engineering controls, administrative measures, and PPE. Implementing fall prevention systems, such as guardrails, safety nets, and toe boards, on elevated work surfaces is a good starting point. These physical barriers help prevent falls by creating a secure working environment.

Additionally, fall arrest systems, including harnesses and lanyards, should be used when workers are exposed to fall hazards. These systems must be properly anchored and regularly inspected to ensure they are in good working condition. Administrative controls are equally critical. Workers should receive comprehensive training on fall protection protocols, including how to use equipment correctly and recognizing potential hazards. Regular site inspections should be conducted to identify and address risks and clear communication, and signage should be used to mark hazards.

Large-scale data center projects frequently involve hundreds or thousands of workers operating simultaneously across compressed schedules. Simultaneous operations, overlapping scopes of work, and congested work areas can increase the likelihood of struck-by incidents, communication failures, and access control breakdowns. Clear contractor coordination protocols, daily pretask planning, multilingual communication strategies, and active field supervision are critical to maintaining safe operations.

3. Heavy equipment and machinery: The use of cranes, forklifts, and other machinery increases the risk of struck-by or caught-in accidents.

Mitigation: Mitigating risks associated with heavy equipment and machinery use on data center construction sites involves a combination of operator training, equipment maintenance, and site safety protocols. All operators must be properly trained and certified to handle machinery, such as cranes, forklifts, and excavators. Regular inspections and maintenance of equipment are essential to identify and address mechanical issues before they lead to accidents. Clear communication protocols, including the use of hand signals and spotters, help prevent struck-by or caught-in incidents. Additionally, designated pathways for machinery and restricted zones for pedestrians should be established to minimize interactions between workers and equipment.

4. Confined spaces: Workers may need to operate in confined spaces, such as underfloor cable trays or cooling system ducts, which can lead to oxygen deficiency, toxic gas exposure, or entrapment.

Mitigation: Through a comprehensive approach that includes risk assessments, worker training, and proper equipment usage, risks associated with confined spaces can be reduced. Before any work begins, a thorough hazard assessment should be conducted to identify potential risks, such as oxygen deficiency, toxic gas buildup, or entrapment. Confined spaces, such as underfloor cable trays, cooling ducts, or utility vaults, should be clearly marked, and entry should be restricted to authorized personnel only. Workers must be trained to recognize confined space hazards and understand the proper procedures for safe entry and exit. This includes the use of a permit-to-work system, which ensures that all necessary precautions are in place before work begins.

Proper equipment is critical for confined space safety. Gas detectors should be used to monitor oxygen levels and detect the presence of hazardous gases. Ventilation systems must be installed to ensure adequate airflow and prevent the buildup of harmful substances. Workers should also be equipped with PPE, such as respirators, helmets, and harnesses, depending on the specific risks of the space. Emergency rescue plans must be developed and practiced regularly, with trained personnel and rescue equipment, such as tripods and winches, readily available.

Many hyperscale data center projects are being constructed in regions with elevated heat exposure, including Arizona, Texas, Nevada, and the Southeast United States. Workers performing concrete, steel erection, utility, and roofing activities are often exposed to prolonged periods of direct sunlight and extreme temperatures. Heat illness prevention programs, hydration monitoring, shaded recovery areas, acclimatization protocols, and supervisor awareness training are becoming increasingly important components of construction safety planning.

5. Slips, trips, and falls: Among the most common safety concerns, slips, trips, and falls often result from uneven surfaces, cluttered work areas, exposed cables, and wet or slippery conditions. These incidents can lead to serious injury, including fractures, sprains, and head trauma, and can disrupt timelines.

Mitigation: Maintaining a clean and organized worksite is essential. Walkways and work areas should be kept free of debris, tools, and materials, and any spills or wet surfaces should be cleaned immediately. Cables and hoses should be secured or routed away from high-traffic areas to prevent tripping hazards. Proper lighting is also critical to ensure workers can clearly see potential obstacles, especially in dimly lit areas or during night shifts.

Additionally, PPE, such as slip-resistant footwear, should be mandatory for all workers. Employers should conduct regular site inspections to identify and address hazards, such as uneven flooring or damaged scaffolding. Clear signage should be used to warn workers of temporary hazards, such as wet floors or open trenches. Training workers to recognize and avoid slip, trip, and fall risks is also crucial.

Accelerated schedules, multiple shifts, overtime work, and 24/7 construction operations can contribute to worker fatigue and reduced situational awareness. Fatigue-related incidents can increase the likelihood of human error, equipment misuse, and lapses in hazard recognition. Contractors should incorporate fatigue management strategies into project planning, including shift rotation practices, supervisor monitoring, and workforce wellness initiatives.

6. Fire and explosion risks: The presence of flammable materials, high-voltage electrical systems, and fuel sources for backup generators increase fire and explosion risks. They're heightened during activities such as welding, cutting, or soldering, which can generate sparks in areas where combustible materials, such as insulation, solvents, or adhesives, are stored.

Mitigation: Comprehensive fire prevention plans are critical and should be implemented. This includes proper storage and handling of flammable materials, ensuring they are kept away from ignition sources. Fire extinguishers and other fire suppression equipment, such as sprinkler systems, should be strategically placed throughout the site and regularly inspected to ensure functionality. Workers should be trained in fire safety protocols, including how to use fire extinguishers and respond to emergencies.

Hot work permits should be required for activities such as welding or cutting, ensuring that proper precautions, such as fire-resistant blankets and shields, are in place. Electrical systems must be installed and maintained by qualified personnel to prevent short circuits or overheating, which can ignite fires. Additionally, regular site inspections should be conducted to identify and address potential fire hazards, such as overloaded circuits or improperly stored materials.

Emergency response plans are critical for minimizing the impact of fires or explosions. These plans should include evacuation procedures, designated assembly points, and clear communication protocols. Workers should participate in regular fire drills to ensure they are prepared to respond quickly and effectively in the event of an incident.

Mitigating Safety Risks in Data Center Construction with Gallagher Bassett

At Gallagher Bassett, we understand the critical role that effective risk management plays in the success of large-scale construction projects. Our tailored solutions are designed to help contractors identify, mitigate, and manage risks across all phases of data center construction. From implementing safety training programs and compliance strategies to providing claims management and loss control services, we partner with organizations to reduce exposures and enhance worker safety.

As data center construction projects continue to grow in scale and complexity, prioritizing safety not only protects workers but also ensures smoother project execution, minimizes delays, and safeguards long-term operational success. By fostering a culture of safety and collaboration, contractors can meet the demands of this booming market while maintaining the highest standards of worker protection and project excellence.