How AI is Fueling the Data Center Construction Surge and Why Adaptable Financing is Critical

As data center projects grow in size and complexity, construction companies managing those projects are also navigating longer lead times, higher material costs, and limited labor forces. Raistone’s alternative financing solutions are helping businesses across the construction industry meet these challenges and scale with confidence, without taking on additional debt.

AI infrastructure spending is driving a construction boom

The rapid adoption of generative AI, machine learning, and large-scale compute workloads has led to a dramatic rise in demand for high-performance data centers. Tech giants like Microsoft, Amazon, Google, and Meta are building at an unprecedented pace, reshaping local economies and pushing construction firms to deliver faster on bigger projects with greater precision.

Industry analysts estimate this data center wave could represent up to $1.8 trillion in private credit opportunities, reflecting both the capital intensity of these projects and the rising demand for flexible financing options. In today’s market, companies that lack access to working capital risk missing out on the opportunity altogether.

The construction cash flow gap constrains growth

Across the construction supply chain, companies are navigating a delicate balance between growth and liquidity. Delayed payments and front-loaded costs can constrain even the most capable firms, limiting their ability to take on larger projects or expand into new regions. Even with careful consideration regarding contracts and payment terms, contractors know that payments are often too slow for balance sheet comfort.

Contractors often grapple with the burden of fronting material and labor costs long before receiving payment, sometimes waiting up to 90 days after invoicing. These delays can limit capacity, strain supplier relationships, and put long-term growth at risk.

To remain competitive, many firms seek non-debt solutions that offer liquidity without adding to their balance sheets. Alternative financing can be the difference between turning down a high-value contract or fulfilling it ahead of schedule and under budget.

Raistone’s solutions for the construction industry

Raistone has extensive experience in the construction industry, including on data center projects. We know that delayed payments constrain supplier growth, which ties up capital, causes financial instability, and results in higher costs being passed along to you.

Our solutions can help you get your suppliers paid early, with the option to extend your payment terms, and advance purchase hardware needed for a project without incurring debt for you or your project owners.

By working with Raistone, you can get your suppliers paid as early as the day they submit their invoice and ensure that key hardware is ready for installation on time, without you or the project owner needing to pay for it in advance.

This not only reduces financial risk, but also creates a competitive advantage in a tight labor market. Contractors who can offer faster payments and greater certainty are better positioned to retain high-performing vendors and secure repeat business.

How we help contractors

By offering early payment options, general contractors can secure the best subcontractors and suppliers, reduce financial risk, and strengthen balance sheet flexibility. It’s simple:

Refer your subcontractors to Raistone’s Early Pay program.
Subcontractors submit their invoices and receive early payment.
You pay on your usual schedule, simply to Raistone instead of your subcontractors.

Supply chain disruptions and long lead times for key materials put a strain on project timelines and cash flow. By working with Raistone, you can purchase mission-critical hardware or materials upfront without tying up capital. Here’s how it works:

You submit an invoice for materials or equipment to the project owner.
Raistone purchases the invoice at full value.
The project owner pays Raistone with a 30- to 360-day extension.

Case study: $10B construction company wins Fortune 10 client

When entering a new commercial contract for the supply of materials related to an IP network buildout, a $10 billion construction services firm was expected by their customer, a global Fortune 10 company, to offer extended payment terms between 30 and 360 days.

The construction company needed a financing solution that hat could adapt to the unpredictability of invoice payment timing while aligning with their client’s wide-ranging terms.

To meet these demands, Raistone structured a $200 million facility that enabled the contractor to maintain accounting derecognition while giving the client full discretion over payment timing. The program launched in under two months with no implementation burden or minimum utilization and has since financed over $350 million in receivables.

This strategic solution empowered both parties to achieve their financial and operational goals, demonstrating how innovative financing can unlock major opportunities in mission-critical infrastructure.

A more resilient construction ecosystem

By offering smarter, more adaptable capital solutions, Raistone is helping businesses scale efficiently, without compromising cash flow or taking on additional debt. Contractors that adopt these tools now will be better equipped to lead the next phase of mission-critical development. With the right financing partner, businesses can grow faster, strengthen their supply chain, and deliver confidently in a highly competitive landscape.

If you’re interested in learning more about how Raistone can help you take advantage of AI acceleration and the accompanying increase in construction demand, please fill out this form or call 888-626-6593 to connect with one of our financial experts.

About the Author

Alexi Kavourakis serves as Head of Originations and Co-Chief Revenue Officer at Raistone, managing a global team that drives business growth across all customer segments and profiles. With over 15 years of experience in the finance space, Alexi brings a wide breadth of knowledge in structuring tailored working capital solutions for businesses across industries. Prior to joining Raistone, Alexi was Vice President of Global Trade Finance at Sumitomo Mitsui Banking Corporation, where he originated and executed working capital finance deals for corporate clients across a variety of industries. He also previously served as Corporate Banking Relationship Manager at Standard Chartered Bank. After over a decade at large multinational banks, Alexi sought the opportunity to help build and scale a sales function at a high growth fintech. He was drawn to Raistone’s clear mission and collaborative culture, which allow him and his team to move quickly in structuring flexible, client-specific financing solutions.