Data centres drive construction digitalisation

KUALA LUMPUR: Malaysia’s pipeline of data centres and industrial developments is accelerating demand for tighter project controls, digital reporting and better coordination across increasingly complex construction projects, according to Austrian construction technology (ConTech) company PlanRadar.
PlanRadar APAC regional lead Avtandil Mekudishvili said the rapid expansion of Malaysia’s construction sector was changing the way developers oversee projects, with greater emphasis being placed on obtaining timely, direct visibility into site activities rather than relying mainly on periodic reports and retrospective updates.
“The biggest change is that developers can no longer afford to manage projects mainly through periodic reports and retrospective updates. They increasingly need direct, timely visibility into what is happening on-site,” he told SunBiz.
He said information on construction projects had traditionally passed through several layers, from subcontractors to the main contractor, consultants and ultimately the developer. By the time a delay, variation or quality issue reached the decision-maker, the opportunity to address it early may already have passed.
Mekudishvili said developers were therefore taking a more active role in project governance, although this did not necessarily mean bringing construction activities in-house.
Instead, he said the more realistic shift in Malaysia was towards retaining the contractor model while introducing clearer responsibilities, more structured risk-sharing and shared digital systems to monitor progress, defects, approvals and changes.
“The emphasis has moved from receiving information to being able to act on it,” he said, adding that developers increasingly wanted one reliable record of a project, clearer accountability for decisions and earlier warning of issues that could affect cost, time or quality.
Mekudishvili said the growth also highlighted the need to address persistent causes of construction delays and cost overruns.
He identified scope changes, slow approvals, incomplete or inconsistent documentation, labour and skills shortages, material-price movements, supply-chain disruptions and poor coordination between contractors and consultants as among the biggest sources of project underperformance.
While not all of these factors could be controlled by developers or contractors, he said their impact could be reduced through earlier identification and better project controls.
Mekudishvili said digital reporting was currently both a competitive advantage and an emerging requirement in Malaysia, depending on the client and project.
He stressed that digital reporting was not yet a universal requirement across Malaysian construction tenders, with many projects still relying on a combination of spreadsheets, email, messaging applications, paper records and separate systems used by different stakeholders.
However, he said digital capability was moving closer to being a basic qualification on larger, more complex and public-sector projects.
PlanRadar itself is a digital SaaS field-management platform for construction, real estate and facility management. Its tools include task management, digital construction documentation, inspections, quality assurance, site diaries, punch lists, evidence collection and handovers. The company says its platform is used by more than 200,000 users across 75-plus countries.
PlanRadar has also been seeking a role in Malaysia’s construction digitalisation drive. In October 2024, it announced a strategic partnership with CIDB E-Construct Services, or CIDBEC, to explore cooperation on construction digitalisation, BIM and construction technology.
Mekudishvili said the data centre boom was particularly significant because these projects combined large capital investments, highly technical construction and demanding delivery schedules.
Mekudishvili said the nature of these projects was changing expectations of contractors.
First, speed could not come at the expense of quality, given the compressed schedules and demanding requirements for mechanical, electrical, cooling, power and security systems.
Second, there was a greater need for coordination between trades because an error or delay in one system could affect testing, commissioning and operational readiness.
Third, clients increasingly wanted a continuous and verifiable record of the build, including inspections, approvals, completed work and installations that would subsequently be concealed.
Digital documentation and visual site records were therefore particularly valuable, he said, because the information could remain relevant after construction as the completed facility moved into operation and maintenance.
Data centre development was also increasing scrutiny of infrastructure constraints, including energy and water availability, cooling requirements and environmental performance.
“Contractors are consequently being assessed not only on whether they can build, but on whether they can provide the transparency, technical discipline and reliable data needed to give investors confidence throughout delivery,” Mekudishvili said.