< Previouswww.mepmiddleeast.com 30 MEP Middle East | June 2024 PROJECT MANAGEMENT Laurent Launguet, CEO of SirajPower – a Positive Zero company, explains the non-negotiable requirements for design-build data centre projects DELIVERING DATA CENTRE DESIGN-BUILD PROJECTS Whether you are constructing data centres or critical power facilities, certain strategies must be put in place to ensure timely project delivery. This is especially crucial during the selection process, particularly when embarking on design-build projects or EPC contracts and before you transfer the overall scope of construction to a contractor. As an owner investing millions of dollars in a project, it is important to recognise that the ultimate goal is to have your project delivered on time and with the expected quality. Delays and quality issues can significantly affect the progress of a project, and such negative consequences can outweigh any cost savings achieved by selecting a particular contractor. Therefore, we must take great care in identifying the right potential contractors and partners. Additionally, we must establish a two-way communication process that not only involves the owner pushing the contractor for project delivery but also fostering discussions to address any issues that arise during the project. Afterall, every project will face challenges, and our aim is to ensure successful outcomes. RISK MANAGEMENT Effective risk management is crucial in project execution. One common misconception is that shifting all risks to contractors is PROJECT MANAGEMENT the best approach to managing projects. However, this can backfire if contractors lack the expertise to manage certain risks. When risks materialise, they may not take appropriate action, and if your contractual arrangements are not well-balanced, you will encounter problems. As an owner, it is essential to identify risks which you and your contractor are better equipped to manage. For instance, during the Covid pandemic, owners would transfer logistics risks to contractors. But in reality, owners are better positioned to mitigate such risks by collaborating with the main suppliers to arrange deliveries effectively. Successful project management involves identifying primary risks, balancing PROJECT MANAGEMENT www.mepmiddleeast.com June 2024 | MEP Middle East 31 Laurent Launguet speaking at the Middle East Data Centre 360 Conference organised by ITP Media Group responsibilities among stakeholders, and leveraging their respective capabilities. SEEKING EXPERTISE IN PROJECT FINANCING AND MANAGING COSTS In general, for data centre projects, SirajPower and Positive Zero encourage their partners and clients to focus their energies and capital expenditures on what they excel at, for example, managing computer servers. Data centres have significant operational expenses, particularly related to energy costs. It is estimated that 30% of a data centre’s energy consumption is attributed to cooling, which involves significant capital expenditures including the installation of chillers on rooftops. Managing energy consumption may not be the expertise of the operator. Therefore, operators should consider hiring specialists to manage the cooling and energy consumption of data centres. At SirajPower and Positive Zero, we offer fully financed cooling solutions, taking the burden off our clients. Data centres play a critical role in reducing carbon footprints for the various industries they serve. However, data centres must not exacerbate environmental challenges by relying heavily on fossil fuel energy. Instead, a shift toward renewable energy is essential. While optimising efficiency is crucial, securing affordable electricity rates is equally important. In Dubai, electricity prices are high compared to other regions. For industrial players, including data centres, transitioning to solar power offers a compelling solution. Our proposal to data centres is that we can manage the solar energy aspect of their operations. We invest in designing and operating solar energy units, ensuring efficient performance with a minimal carbon impact. By providing cost- effective and CO2-free electricity, we empower data centres to operate sustainably. Cooling-as-a-service is an emerging model being implemented in various parts of the world. It addresses both cooling needs and energy requirements. Through power purchase agreements (PPAs), which we refer to as solar lease contracts, data centre owners can delegate these responsibilities to specialised companies. These companies not only invest in the necessary infrastructure but also manage it on behalf of the data centre owner. As a result, data centre operators can concentrate on their core business without the added complexities of cooling and energy management. RISK MANAGEMENT Dubai, in particular, has been proactive in implementing regulations to accelerate data centre development. Until recently, we faced limitations on solar system installations due to size restrictions. Some logistics companies could work within these constraints, as their energy needs were minimal. However, for data centres, the existing gap made solar adoption ineffective. Installing a small solar system would only offset a fraction (around 5%) of their electricity bill. The D33 policy will be a gamechanger for the data centre industry. An initiative of the Dubai Economic Agenda D33, the policy enables manufacturers, data centres and agri-tech players to deploy captive solar PV generation capacity up to their total required load (maximum demand). Thus, it empowers them to meet their own demand while slashing the power costs they would normally incur and thereby achieve a cleaner energy mix. Once implemented, data centres will be able to develop large-scale solar systems capable of powering their entire facilities. One of the positive impacts of the policy will be that data centres will be able to reduce their electricity bills by up to 50% and reduce their OPEX significantly by harnessing solar energy. EFFECTIVE COMMUNICATION LEADS TO BETTER COLLABORATION Communication is an essential part of project management. Our approach involves fostering enduring relationships with contractors and partners and establishing a culture of collaboration from the start of a project. Unlike short-term strategies that focus solely on minimising costs or expediting construction, we take the broader view. Pressuring contractors to the point where they will not work with us again may yield short- term gains, but it is detrimental in the long run. Instead, by collaborating with multiple players, we diversify our network to ensure resilience in project delivery. Even if contracts are slightly expensive, we recognise that the commitment of contractors to quality and shared success outweighs short- term cost savings. When selecting partners, we assess their long-term commitment. Are they here to make a quick profit and leave, or are they invested in sustained growth? As a well-established UAE-based company, we are in it for the long haul, and our partners share our vision and commitment to excellence in project delivery. www.mepmiddleeast.com 32 MEP Middle East | june 2024 SUSTAINABILITY By Sangeetha B, CEO and Founder, Amantra FM SUSTAINABILITY METRICS: EMPOWERING ENVIRONMENTAL COMMITMENT WITH TECHNOLOGY By Briano Martinoni, Co-founder and Chief Commercial Officer, Green Future Project In today’s digital world, metrics matter more than ever. Examine a day in the life of someone diligently adhering to a strict diet, whether it be for the sake of losing weight or building muscle, and you’ll likely see them measure their caloric intake. Ask a cryptocurrency enthusiast how they determine which coins to invest in, and what factors dictate when they buy or sell, they’ll likely point you in the direction of pie charts and patterns to identify trends and potential entry or exit points, and the same applies for businesses that are actively striving to minimise their carbon footprint for the betterment of society. With several countries across the globe committed to net zero emissions mandates, and the world as a whole working towards the creation of future-proof economies, carbon footprint monitoring tools are becoming increasingly utilised due to an array of benefits. This includes forecasting carbon budgets (i.e. tracking progress on Scope 1, 2 and 3 emissions over time and setting reduction targets to avoid exceeding them on your journey to reach net carbon zero) and empowering stakeholders to make decisions that result in positive action. Additionally, a carbon footprint monitoring tool is essential to avoid greenwashing by also qualifying for Science Based Targets (SBTs), enabling a business to have a positive impact on its customers, stakeholders, and the planet while also unlocking the power of data to achieve a net zero emissions strategy that aligns with its growth targets. THE JACKSON 5 SAID WHAT? “ESG, it’s easy as 1, 2, 3.” I may have paraphrased the lyrics a bit… but if the Jackson 5 were environmental advocates leveraging the power of impact metrics, I’d like to think that they’d agree with me. For a business, assessing every realm of its sustainable efforts is vital. Effectively measuring Scope 1, Scope 2, and Scope 3 emissions is, therefore, imperative: Scope 1 emissions refer to direct GHG emissions from sources that are owned or controlled by the reporting entity (for an SUSTAINABILITYSUSTAINABILITY www.mepmiddleeast.com june 2024 | MEP Middle East 33 Briano Martinoni, Co-founder and Chief Commercial Officer, Green Future Project moment then it likely never occurred. As it relates to the environment, carbon footprint monitoring tools ensure this can’t be the case by providing a comprehensive and interactive overview of emissions from various sources - allowing a business to monitor, track, and manage its carbon footprint to address climate change concerns effectively. Sharjah Sustainable City is an example that may make the concept clearer, as they are actively advancing in the journey to achieve Net Zero. Through the power of technology, they are aggregating data on energy consumption and production (the city is powered by renewable energy generated by rooftop solar panels) so that total and individual building energy budgets can be tracked and the data can be communicated transparently while creating a possibility to identify inefficiencies and also optimise costs, consumption, and pollution. Beyond the environment, or arguably in unison with it, companies that digitise their data in today’s increasingly environmentally conscious climate are also afforded the benefit of a stronger and more credible brand. Studies show that 66% of global consumers are willing to pay more for sustainable products and services, classified as ‘green consumers. Adopting such an approach not only contributes to the world’s environmental well-being but also enhances brand image and reputation to nurture long-term success. VIRTUAL EXPERIENCE, REAL-LIFE IMPACT Undertaking environmental projects is one way for a business to demonstrate its commitment to a more prosperous future. A UAE-based organisation with more than 10,000 employees is exemplifying this through their ambition to preserve the planet and the nation’s biodiversity while recognising that cutting carbon emissions is just one part of the solution. The company prioritises a sustainability strategy of strategic initiatives and partnerships to protect and restore nature, alongside implementing nature-based solutions for climate change. Specifically, they’re on a mission to plant 10 million mangroves by 2030 after planting 2.5 million in the last year alone via drone technology. Not only are mangroves an important part of the UAE’s heritage which need to be protected but they also play an essential role in our lives today as they have historically. They were crucial to our ancestors’ way of life, providing them with building materials, fuel, and fodder for livestock. Today, mangroves play a pivotal role in capturing carbon dioxide (CO2) and greenhouse gases (GHG), protecting Abu Dhabi’s shorelines from coastal erosion, and providing a safe habitat for marine life. BUT HOW DOES THIS COMPANY TRACK ITS ENVIRONMENTAL IMPACT? Leveraging impact metrics, drone videos, immersive soundscapes, weather conditions, photographic material, and satellite technology are all at the company’s disposal. These features make for a virtual experience to monitor the company’s mangrove project progress, observe crucial indices on forest health (i.e., a range of vegetation ratings, stand canopy height, temperature, humidity, perceived wind within the reserve, etc.), and most importantly, ensures maximum transparency in everything that they communicate. Their dashboard breaks down everything, from the number of trees it has planted to the amount of CO2 the company has offset and what portion of these emissions are science-backed. For example, with one mangrove tree removing an annual average of 12.3 kilograms of CO2, the company will receive (and display) up-to-date information with every mangrove that it plants while also being provided with clarity about the project’s impact on biodiversity and economic development. Many natural resources in the Emirates can be protected, defended and now ‘digitised’ so that the process of supporting, monitoring and communicating these “green” initiatives is not only easier but also more effective for companies. And for these reasons, your business, if focused on sustainable growth, should look into setting up your dashboard today. office, this could entail the combustion of fossil fuels on-site from sources such as company-owned vehicles). Scope 2 emissions encompass indirect greenhouse gas emissions associated with the generation of purchased or acquired energy (for a small electronic device manufacturer, this could be the electricity consumption for operating their facilities). Scope 3 emissions include all other indirect emissions that occur in the value chain of the reporting entity (these emissions are often more challenging to quantify as they extend beyond the immediate control or ownership of the organisation but for an e-commerce company, it could comprise business travel and employee commuting, as well as supply chain activities like transportation and distribution). Understanding the different scopes helps businesses identify where they have the most significant impact and where they can implement effective emission reduction initiatives. HOW TO MEASURE THESE SCOPES The Internet verbiage of “Pics or It Didn’t Happen” will remind you, albeit less eloquently, that if you didn’t capture the www.mepmiddleeast.com34 MEP Middle East | June 2024 GENERATIVE AI GEARING UP FOR THE AI DISRUPTION Autodesk report highlights the evolving trends in artificial intelligence, market readiness, skill development and the potential of generative design in architecture, engineering and construction Industries that design and make represent a unique category that connects the digital to the physical. They include architecture, engineering, construction, built asset operations, product design, manufacturing, game development, and filmmaking, all of which require complex human collaboration throughout a digital design process and delivery of a physical result. To gain insights on how digital transformation is driving business resilience, powering sustainability efforts, and shaping the future of work in the abovementioned industries, Autodesk surveyed nearly 5,400 industry leaders, futurists, and experts worldwide and published the findings its ‘2024 State of Design and Make Report’. The survey reveals that companies investing in digital transformation are seeing dramatic results. Such companies are more competitive in their industries, their employees are more productive, and they see overall better performance than companies with lower levels of digital investment. Business leaders and experts worldwide are bullish on artificial intelligence (AI), and there is an understanding that AI is a current tool rather than a futuristic pipe dream. 56% of respondents say they are already approaching or have already achieved their goal of incorporating AI into their companies. An even larger portion say that AI will enhance their industry and be “essential across the www.mepmiddleeast.comJune 2024 | MEP Middle East 35 board” within two to three years. Notably, 46% of design and make companies in the Middle East indicate they are approaching or have achieved their goal of incorporating AI. 85%of Middle Eastern respondents are confident that their company will make the right decisions regarding AI. While some respondents feel that trust may come from the fact that AI has not caused harm to businesses quite yet, industry leaders find productivity gains to be a promising effect of AI and are pushing their teams to pilot use cases in hopes of converting opportunities early. TRUST IN AI IS INCREASING, BUT THERE’S EQUAL CONCERN ABOUT ITS NEGATIVE IMPACT The Autodesk report found that trust in AI is growing in general, with 87% of industry professionals in the Middle East saying they trust AI for their industry compared to 76% globally. Businesses are using AI to increase productivity and automate work, and leaders predict that generative AI will help their teams make crucial design decisions about physical products, buildings, and digital assets in the next years. This increase in technology adoption fueled by AI is set to continue, with 77% of industry professionals globally saying they will continue to invest in AI and emerging technology in the next three years. While 84% of interviewees said that AI will enhance their industry, a stark 51% believe AI will destabilise the industries. Naji Atallah, Head of Construction and Manufacturing, EMEA Emerging Countries, Autodesk, explains: “Whenever a new technology or process emerges, there’s an inevitable period of uncertainty in the beginning. This phenomenon is not new; people have been skeptical about disruptive technologies since the industrial revolution. As humans, we grapple with the question of how new technology will bring fundamental changes to different industries and how it will affect job roles. In this context, when 51% of the people surveyed say that AI will destabilise their industries, it reflects their concerns about whether or not AI will bring about a positive change, both to their industries and job roles. However, the overall sentiment regarding AI’s impact on industries remains positive.” One of the key factors that instills confidence in AI is the understanding that AI will not be making decisions for the foreseeable future, and therefore, will not have an impact on safety standards. “AI will serve as a powerful tool that complements human expertise, particularly in highly regulated industries, where experienced engineers will always play vital roles in reviewing designs and assessing compliance with building codes and safety standards to make crucial decisions, with or without the use of AI. “As long as people are in charge of decision making, AI will enable better project outcomes by enhancing the capabilities of designers, architects and engineers,” explains Naji. While tools like generative AI don’t fundamentally alter the decision-making hierarchy, they do enhance the capabilities of engineers. “It’s unlikely that a young and inexperienced engineer would be entrusted with major design decisions by an employer. However, the goal is to augment the existing skill set of the engineer by providing additional tools. It’s reassuring that the current regulatory processes, checks and balances, and adherence to codes in the construction industry will remain unaffected by AI advancements,” says Naji. Naji Atallah, Head of Construction and Manufacturing, EMEA Emerging Countries, Autodesk GENERATIVE AIwww.mepmiddleeast.com36 MEP Middle East | June 2024 GENERATIVE AI By automating mundane, repetitive work, engineering man-hours can be significantly reduced, and design processes streamlined IMPACT ON HIRING DECISIONS Cost challenges and lack of staff are forcing companies to become leaner and more efficient. As a result, more than half (52%) of industry professionals say the ability to implement/ work with AI is one of the top technical skills companies will be prioritising for hiring decisions over the next three years. 84% of these industry professionals in the Middle East say AI will enhance their industry and are aiming to utilise this trajectory to their benefit. Leaders across design and make industries continue to navigate talent shortages, with the speed of transformation widening the skills gap. As workforces tighten, professionals see AI’s potential to help manage workloads on leaner teams by improving productivity (57%), free up employees for more meaningful (41%) and creative work (89%), and supplement skills gaps (47%). Upskilling is critical: Results show that 87% of Middle Eastern survey respondents agree that upskilling is important while 41% say their organisations don’t have the necessary skills and resources to design internal training programmes, making it difficult for companies to effectively train employees on systems and processes that are specific to their organisation. However, these limitations are not stopping companies from offering any training at all, with 79% of Middle Eastern respondents implementing continuous learning and 82% investing in digital skills training programmes. As companies take action to address the rising challenge to business growth, talent acquisition and retention, the report’s findings show clear factors to consider. Amongst the Middle East respondents, 81% say digital maturity of companies helps attract talent and 80% find that sustainability efforts attract and help retain talent. Looking ahead, 97% of the interviewed industry professionals from the Middle East confirmed they are taking steps to improve sustainability of which 49% of the respondents say that AI is an important tool for their company to increase sustainability. APPLICATIONS OF AI IN ARCHITECTURE, ENGINEERING, CONSTRUCTION AND OPERATIONS Currently, the top use cases for AI are increasing productivity and automating mundane, repetitive tasks. The benefits of AI in the architecture, engineering, construction, and operations industries can be realised in three ways – automate, analyse and augment. Automation: Research indicates that up to 70% of the tasks in design workflows can be optimised through automation due to their repetitive nature. For example, lighting design for a room can be automated easily because it’s a rule-based process that is repetitive. AI can mimic the process followed by humans to assess the size of a room and determine the number of lights and their installation locations in the room. By automating mundane, repetitive work, engineering man-hours can be significantly reduced, and design processes streamlined. Additionally, automation helps address skill gaps in industries such as construction in which experienced professionals worldwide are on the verge of retirement and it becomes difficult to replace them with young professionals as new generations do not finding construction jobs appealing. In such cases, automation helps achieve high levels of productivity with fewer but skilled individuals. Analysis: When designing a community, there is a significant amount of analysis required, particularly related to microclimate and environmental factors such as wind flow. A parallel can be drawn to car design, where aerodynamic analysis and computational fluid dynamics play a crucial role in understanding how wind interacts with the vehicle. However, these types of analyses are complex to interpret and expensive in terms of computation time. AI can be used www.mepmiddleeast.comJune 2024 | MEP Middle East 37 “ AI will serve as a powerful tool that complements human expertise, particularly in highly regulated industries, where experienced engineers will always play vital roles in reviewing designs and assessing compliance with building codes and safety standards to make crucial decisions, with or without the use of AI” The benefits of AI in the AECO industries can be realised in three ways – automate, analyse and augment to solve such problems efficiently by training algorithms on existing simulations. Naji explains: “As a company, we engage in creating numerous simulated scenarios. The simulations may not represent actual projects, but they use real data to provide valuable insights. We construct mock environments, analyse them, and then leverage AI algorithms to process the results. “When we run a new simulation, we don’t have to perform complex mathematical calculations manually. Instead, the AI examines existing outcomes and predicts results rapidly with high accuracy. Of course, at the end of the design process, we need to validate the results and ensure that they are in line with mathematical principles. This approach saves significant engineering hours and computational resources.” Augmentation: The potential of generative AI lies in augmentation, which requires the collaboration of designers and AI for solving problems. In the future, instead of a single person or a group working on a specific design, the designer will engage with an AI model by using prompts to articulate the desired outcomes for the design. “Consider the process of designing a chair to support a specific weight and provide comfort, but the material usage needs to be optimised. The role of the designer using an AI model would be to convey the problem statement and design objectives to the model. “The algorithm will sift through thousands or even millions of potential designs, rank them, and present the top solutions. The human designer can then evaluate the options and select the best design. This exemplifies the partnership between humans and generative AI where algorithms offer a plethora of solutions for consideration, but humans will have the final authority. We believe the power of human-AI synergy will revolutionise the AECO industry,” says Naji. GENERATIVE AIwww.mepmiddleeast.com38 MEP Middle East | June 2024 GENERATIVE AI PLANNING FOR AI IMPLEMENTATION Naji elaborates on how companies, especially SMEs, can plan for AI implementation and suggests best practices for building and managing large datasets, including historical data to train AI models. “One of the biggest challenges faced by our customers is leveraging past experience effectively. This is especially true in the construction industry. Unlike manufacturing where products are designed once for mass production, construction projects are unique and bespoke where certain processes may be repetitive. As humans, we’d struggle to discern patterns from immense and diverse datasets. But AI has the potential to excel in this domain. Many of our customers are already harnessing AI to analyse their historical data. Algorithms can analyse vast quantities of complex, unstructured data spanning decades where legacy tools and practices differ significantly. However, I don’t believe construction companies should necessarily build their own AI algorithms for this purpose. Afterall, they aren’t technology companies by nature,” says Naji. ADDRESSING THE ISSUE OF DATA PRIVACY Autodesk leverages decades of design and construction experience to create powerful AI models. To continuously improve these models, the company collaborates with some customers who choose to share their data anonymously. The data shared by customers helps Autodesk train its AI models in real- world scenarios, ultimately benefiting all users by enhancing the model’s performance and accuracy. However, this practice raises the question of data privacy Naji addresses the common concern of business owners about sharing confidential data with technology companies. “Data is the fuel for AI. Without data, AI models cannot be trained, and algorithms cannot be improved. Companies that intend to unlock the potential of AI will need to partner with technology providers. One of the ways our clients leverage our platform is for risk management, which involves an AI- powered risk analysis on their project data. The risk analysis is possible because they grant access to their data. This allows our AI models to identify patterns across seemingly unrelated projects around the world. For example, a project executed in Dubai under certain temperature and humidity conditions can be compared to a project executed under similar weather conditions in Texas. The AI can extract patterns of failure and delays on both the projects, recognise similarities and flag potential risks for the projects, even though they’re geographically distant. This ability to detect hidden connections in vast datasets goes beyond human capabilities, enabling proactive risk mitigation. “We collaborate closely with clients to determine the specific data points most Companies that intend to unlock the potential of AI will need to partner with technology providerswww.mepmiddleeast.comJune 2024 | MEP Middle East 39 relevant for identifying potential risks, and we ensure data privacy and anonymity throughout the process. Eventually, all the insights obtained from one company’s data do not benefit that company alone, but they are embedded in our AI models for the benefit of all current and future customers. This is similar to how self-driving cars learn from each other continuously,” says Naji. OUTCOME-BASED DESIGN: A PARADIGM SHIFT IN DESIGN THINKING The construction industry underwent a major technological shift in the 1980s with the transition from manual drafting on large paper sheets to computer-aided design (CAD). While CAD offered increased efficiency and digitisation, it didn’t fundamentally change design workflows. The true paradigm shift arrived in the early 2000s with building information modeling (BIM). BIM introduced three-dimensional design thinking and data- driven workflows. The model itself became the central source of truth, generating drawings, bills of quantities, and reports. This transition from 2D to 3D design presented challenges, particularly for experienced designers accustomed to traditional methods. However, the industry successfully navigated this shift by fostering collaboration. Young designers skilled in 3D tools complemented the experience of veteran professionals, ensuring a smooth transition. Another significant transition occurred in the mid-2010s with the advent of cloud computing. The seamless integration of BIM into cloud-based workflows enabled worldwide collaboration on design. Engineers in the US could collaborate with counterparts in India to serve a client based in the UAE. The global work environment enabled through cloud services marked an expansion of the transformative changes that had occurred previously with BIM technology. “With AI, we’re witnessing what we term ‘outcome-based design’. We discussed how designers articulate problems to algorithms, but now there’s a fundamental shift in defining the problems and outcomes. Imagine working on the master plan of a residential project to accommodate 1000 people. Instead of merely stating the design problem for the residential units, we consider the well-being of the residents and their experiences. For instance, every 500 people may need a pharmacy and three small shops. The AI model will generate millions of design iterations based on our criteria and identity and rank the best options,” says Naji. “This represents a significant leap in how we approach design. However, it won’t entirely replace our previous methods. Think of it as an add-on or enhancement. This is especially useful when faced with a bid submission deadline because we’ll have an abundance of design options to choose from, and our focus will shift to optimising and refining the options. New AI methodologies will complement our existing practices. As with the advent of finite element analysis in the 80s, we’ll continue to rely on human context and experience. While AI can provide mathematically sound results, it’s up to us to ensure they make sense in the real world,” he adds. Without data, AI models cannot be trained and algorithms cannot be improvedNext >