The Challenges Facing the Data Centre Supply Chain
In a recent survey conducted by RLB, it was found that over 70% of respondents believe that the supply chain in the data centre sector is struggling to keep up with demand. Additionally, 53% fear that the sector will be unable to meet capacity demands in the near future.
Key Findings from the Report
The annual Data Centre Trends report from RLB gathered insights from 535 stakeholders in the data centre industry in the UK and Europe. While supply chain risks may not be increasing at the same rate as in previous years, prices are on the rise, and the gap between supply and demand continues to widen.
Capacity Surging
One of the key findings of the report is the significant surge in commissioned capacity, which has increased by nearly 300% since 2023. On average, data centre operators are now averaging 47MW each this year. Furthermore, 63% of respondents believe that the influx of private equity investment is driving up demand for data centre materials and infrastructure.
Growth of the Retrofit Market
The report also highlights the expanding market for data centre retrofits, with 66% of respondents planning to retrofit at least a quarter of their estates in the next five years.
Rising Demand for Power
The increasing demand for energy, power density, and liquid cooling is being driven by advancements in AI technology. 73% of respondents noted that power density requirements from data centre occupants are on the rise. Additionally, there is a growing anticipation that small modular reactors (SMRs) will become a prevalent power source for data centres in Europe within the next 15 years. By 2030, operators expect that 61% of their estates will be liquid cooled.
Escalating Price Pressures
Respondents in the survey estimated that prices across key areas will increase by an average of +5% year-over-year. This includes a 3.0% increase in uninterruptable power supply, a 2.8% increase in battery energy storage systems, and a 2.2% increase in generators.
Mitigating Supply Chain Risks
To address the challenges in the supply chain, proactive planning and early supplier engagement are essential. While 44% of operators and contractors are using technology to track suppliers and assets, only 32% have implemented risk-sharing clauses in their contracts. Additionally, only 21% have expanded their supply base, and less than 20% have adopted vendor managed inventory agreements.
Nikki Venetsanakis, RLB’s Head of Advanced Tech, emphasizes the importance of strategic planning and collaboration in meeting the growing demand in the data centre sector. Innovative solutions and early supplier engagement will be crucial in ensuring scalable and sustainable infrastructure for the future.
