Recommendations
To navigate supply chain resilience, our experts say...
Ensuring a profitable pipeline of data centre construction projects in the face of technology changes, energy constraints, and supply chain risks requires discipline and innovation in every dimension of planning and delivery.
Our experts recommend a strategic approach that encompasses the effective location of new sites and reuse of existing facilities; innovative use of data and information; long-term and creative thinking on energy supply; future-proofing design; and minimising supply chain risk through strategic procurement.
STEP 01
Identification
Review and retrofit your current portfolio
Data centre requirements are changing rapidly, but that doesn’t mean existing facilities don’t have value. Retrofitting 10 to 15-year-old data centres can serve many needs: meeting AI demand by upgrading cooling systems, enhancing efficiency to comply with new regulations, leveraging decarbonisation through material replacement to meet legislative targets, or even stabilising the energy grid by installing battery storage. Getting started early on design and commercial reviews can help to secure cost-effective refits.
Conduct critical site due diligence
When evaluating potential new sites for data centres, focus on cost-effective locations with growth potential. Examine access to key infrastructure, current and future power availability, and potential environmental risks. And to prevent delays and unexpected costs, analyse zoning regulations and the local permitting processes.
Manage data for smooth delivery
A successful data centre construction project depends on effective information management, to ensure data is fit for purpose and available when and where it’s needed. Building a centralised document management system, for example, can improve project transparency and communication, minimising the chance of delays and disruptions.
STEP 02
Concept
Think laterally on the future of energy
Power plays a pivotal role in the data centre sector, so it’s important to consider innovative solutions and long-term strategies. Consider collaborating with local energy providers to enhance or optimise electricity generation. Explore the use of small or micro-modular reactors. And work with investors to develop long-term funding strategies for energy projects and sustainability initiatives.
Make sure your project is up to standard
Whether you are building a new facility or retrofitting an existing asset, review accreditations and standards to ensure compliance with current regulations. This is critical for maintaining industry standards such as LEED and BREEAM, as well as avoiding potential legal issues.
Power is not the only utility to consider
Securing power capacity continues to be the primary focus in site selection but it is closely followed by strong fibre networks and sustainable water sources. Fibre connectivity is critical for low-latency, high-speed data transmission, although it is not a universal priority. Meanwhile, water scarcity and environmental concerns are pushing operators towards alternative cooling technologies to reduce water dependency.
STEP 03
Integrate
Anticipate supply chain risks with digital platforms
Digital technology provides far greater visibility into the supply chain risks than has ever been possible. To mitigate these risks, integrate digital platforms and dashboards throughout the project life cycle and use real-time data analytics to identify potential disruptions before they happen.
STEP 04
Design
Prioritise adaptability in design
In a rapidly evolving market, adaptability will define long-term resilience and success. Modular design and build techniques allow facilities to evolve in response to shifting workloads, emerging technologies and supply chain constraints. With flexible infrastructure – such as hybrid cooling systems, reconfigurable rack layouts, and prefabricated components – operators can future-proof their facilities while staying agile.
STEP 05
Supply Chain and Procurement
Map out your supply chain for resilience
The data centre construction supply chain is under threat of disruption by tariffs, trade restrictions, cybersecurity risks and more. It’s therefore critical to map out the global supply chain to understand and mitigate your risks. This includes understanding the impact of regulations, trade policy and cybersecurity threats.
Extend your supplier base
The recent consolidation of suppliers through acquisition has concentrated the risk to data centre construction. But opportunities to diversify are often missed because operators stick to familiar providers. By exploring new suppliers, significant CapEx savings of up to 30-40% can be achieved.
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