The construction world is seeing a boom in massive projects worth billions of dollars. These huge builds, which can take years and cover large areas, are pushing the limits of what builders and supply chains can handle. This surge is driven by heavy spending on infrastructure, a rush to build data centers, and new projects linked to the energy transition.
Douglas Schrift, who leads infrastructure at Liberty Mutual, says it’s common now to see billion-dollar projects every month—a big change from just a few years ago. He points out that this growth comes from energy projects, airports, roads, dams, and especially data centers, which power the digital world and artificial intelligence. Experts predict nearly $7 trillion will be spent globally on data center infrastructure by 2030, with the US taking more than 40% of that.
But bigger projects bring bigger challenges. Builders are dealing with tight supply chains, changing plans mid-construction, and a shortage of skilled workers. Labor has been a problem since the 2008 recession, and it’s worse now as demand outpaces the available workforce. Schrift notes this can affect the quality of work, especially when projects are far from cities and need specialized skills.
Legal issues are also making things harder. In the US, lawsuits and rising costs linked to construction claims are putting pressure on contractors. A report from WTW highlights that serious injury claims and alternative project setups like design-build methods are driving up costs, especially for road and infrastructure projects. Aldo Fucentese from Liberty Mutual explains that the cost of injury claims has increased two to three times in recent years due to aggressive legal tactics, which impacts insurance for everyone involved.
Insurance for these mega-projects is getting stricter, especially for property damage risks tied to natural disasters. While insurance for accidents remains competitive for data centers, property coverage is harder to secure and often needs multiple insurers sharing the risk. Cyber risks are another concern. It’s unclear who is responsible if data is lost or hacked after construction finishes, and insurers are still figuring out how to cover these threats.
Both Schrift and Fucentese stress that managing risks on these massive projects calls for close teamwork. Liberty Mutual recently set up a global team focused on big infrastructure projects to offer tailored insurance and risk advice. They want to work closely with clients to handle their unique needs instead of applying one-size-fits-all solutions. Fucentese also warns that while data center building is hot now, contractors need to be careful not to stretch themselves too thin.
In the end, these giant projects need a full view of risks from start to finish—planning, building, operating, and even shutting down. Getting everyone involved early, from contractors to insurers, will help tackle challenges ahead. As Schrift puts it, strong relationships and real know-how will be more important than ever in this new era of construction.