The cost of facility downtime is considerable for operators and can affect reputational risk, customer commitments, security requirements, and mandatory duplication. Data centers can benefit from risk management platforms but first need to learn how the platforms can help them. 

Introduction  

Data centers are integral to modern technology infrastructure, powering everything from cloud services to e-commerce platforms. As the demand for data storage and processing continues to grow, it’s vital to address critical risks related to their development and ongoing operations. In this blog, we’ll explore an often ignored risk, the impact of contractors and vendors on the data center risk landscape. 

The Risk Landscape 

Data centers face many risks from construction to operation such as: 

1. Impact of downtime caused by human error 
2. Required labor and material efficiencies in design, build, and operation/maintenance 
3. Security risk from contractors and visitors 

Contractors: A Vital Component 

Data centers are not just machines; they’re powered by people. Focusing on human efficiency is critical to providing reliable, safe, and continuous service. Data center construction, maintenance, and upgrades often involve contractors whose work has a direct impact on the reliability of, and the safety of everyone depending on, the data center. Any failure or unexpected down time can have immediate cost ramifications to customers and operators while jeopardizing future trust in the facility. 

Challenges in Contractor Management 

1. Quality Control: Ensuring contractors are trained in and capable of adherence to standards and best practices. 
2. Safety Compliance: Contractors must have operator-approved and vetted safety protocols in place to help prevent accidents and meet security clearance requirements for the operator and facility. 
3. Additional Exposure: Vetting for cybersecurity, correct insurance coverage, and sustainability practices that align with the facility’s standards is an important step prior to bringing contractors, suppliers and subcontractors onsite.  
4. Project Timelines: Efficient coordination between contractors is essential for timely completion. 

These challenges can be managed with the right technology partner. When a data center leverages contractor management software to help collect, review, vet, and report on contractor, supplier, and subcontractor qualifications and previous work records - such as safety history - it can help mitigate many of the risks outlined above.  

• Improving the Human Element: Use risk management software to efficiently source and qualify contractors and suppliers before work is started and manage to the individual level to identify leading indicators and mitigate future incidents.  
• Regular Audits: Conduct audits both in person and through the management platform to assess contractor performance and compliance throughout the job.  
• Training and Skill Development: Invest in continuous learning for workers to ensure specialty trainings are completed and everyone on site is educated for the work needed. 
• Communication: Clear contractor requirements and instructions along with feedback loops based on reporting enhance communication. 
• Build Trust: By having a robust process for qualifying and managing contractors, you can build trust and have a consistent approach across your facilities. 

Conclusion 

Data centers are more than hardware and cables; they’re ecosystems where technology and people intersect. By addressing the human element of these facilities and managing contractors and suppliers through a risk management platform, we can build and operate safe, efficient, and reliable data centers. 

To learn how ISN can help you manage your contractors and vendors, learn more here.