Recommendations

The data centre sector faces significant challenges due to supply chain constraints, hindering its growth potential. This page outlines recommendations for operators and contractors to navigate these hurdles and ensure continued expansion.

Our experts recommend the following to mitigate the impact of supply chain constraints: adopt a strategic approach that encompasses location diversification, flexible power source options, a focus on sustainable practices, adaptable designs, standardised components, and collaborative risk management.

Identification

STEP 01

Identification

Be open minded about location

Demand for data centres is growing outside the core FLAP-D markets. A more diverse portfolio will insulate operators from fluctuations in local markets, giving them the confidence to buy materials and components in advance. Second-tier markets present labour supply challenges, however, and a comprehensive feasibility study is essential.

Fernando Turro

Associate Development Manager

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Concept

STEP 02

Concept

Rees Westley

Head of Utilities Advisory

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Plan for power

The availability of energy is the main constraint on data centre capacity. A diverse and adaptable supply chain will allow operators to focus their investments where energy is available, affordable and sustainable. Prioritising locations with strong renewable infrastructure and supportive policies further strengthens the strategy.

Accelerate sustainability

The data centre sector has the right intentions on sustainability, but failure to move quickly could mean that projects starting today could fail to meet imminent regulatory requirements. The sector’s environmental impact is already under scrutiny and such failures could trigger even stricter interventions.

Jon Clark

Associate

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Design

STEP 03

Design

Nikki Venetsanakis

Head of Advanced Tech, Europe

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Design for adaptability

A flexible data centre design will allow operators to maintain construction in the face of uncertain demand and regulatory variations across markets. Modular designs and prefabricated components can help support this agility.

Procurement

STEP 04

Procurement

Standardise to de-risk procurement

Adopting standard component designs and specification across a portfolio of facilities allows operators to pool their equipment, protecting against the risk of stranded assets should demand take a sudden turn.

Meena Sankar

Head of Specification Consultancy

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Aziz Mehtajee

Head of Dispute Resolution

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Share the risk

Limiting exposure through risk sharing is beneficial to all parties in the supply chain. Maintaining an overview of the implications of contractual clauses is vital, so that whoever holds the risk also has the most influence in mitigating it.

Work with your suppliers to map out supply chain risk

Working together to understand your shared exposure to supply chain constraints and disruptions will help both parties plan and adjust while building trust and loyalty.

Louisa Curcio

Head of Risk Management

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Jake Bush

Head of Supply Chain and Procurement

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Order ahead

To secure optimal pricing, prioritise ordering equipment with long lead times early in project development. Choose reliable suppliers based on your needs, their finances, service agreements, industry standards, safety policies, references, and total cost of ownership. Ensure transparent proposals detail all potential costs, including transport, storage, and change orders.