**London**: Recent research from Rider Levett Bucknall reveals that 70% of stakeholders believe the supply chain for data centres isn’t adapting to rapid demand growth. The study indicates significant investment and evolving technology requirements, highlighting future capacity challenges within the sector.
Recent research from construction and property management consultant Rider Levett Bucknall (RLB) highlights a growing disparity between the soaring demand for data centres and the struggling supply chain, particularly in the UK and Europe. The findings are detailed in RLB’s annual Data Centre Trends report, which draws insights from 535 stakeholders, including data centre operators and contractors.
A significant 70% of those surveyed believe that the supply chain is not keeping pace with the explosive growth in demand, with over half (53%) expressing concerns that the sector will face challenges in meeting future capacity requirements. This report indicates a near-300% increase in commissioned capacity since 2023, with operators averaging 47 megawatts (MW) each this year.
The influx of private equity investment is noted as a driving factor of this demand, with 63% of respondents agreeing it is intensifying the need for data centre materials and infrastructure. In response to the expanding demand, the retrofit market for data centres is also gaining traction; 66% of those surveyed indicated plans to retrofit at least a quarter of their estates over the next five years.
As technology rapidly evolves, especially in the realm of artificial intelligence, the demand for power within data centres is surging. The report reveals that 73% of respondents are witnessing increased power density requirements from data centre occupants. Furthermore, there is a belief that small modular reactors (SMRs) will become a common power source across European data centres within the next 15 years, while operators expect that by 2030, 61% of their estates will be utilising liquid cooling systems.
Amid these developments, price pressures continue to mount, with respondents estimating that costs across crucial areas will rise by an average of 5% year on year. Specific increases predicted include 3% for uninterruptible power supplies, 2.8% for battery energy storage systems, and 2.2% for generators.
To combat these supply chain challenges, RLB emphasises the importance of proactive planning and early engagement with suppliers. The survey findings suggest that 44% of operators and contractors are leveraging technology to monitor suppliers and assets, yet only 32% have implemented risk-sharing clauses in contracts. A mere 21% reported broadening their supply base, and fewer than one in five (19%) have opted for vendor managed inventory agreements.
Nikki Venetsanakis, RLB’s Head of Advanced Tech, commented on the situation, stating, “With demand growing faster than expected, delivering projects on time and within budget requires a strategic, proactive planning approach. Innovation and collaboration – particularly through early supplier engagement – will be key to ensure scalable, sustainable infrastructure for the future.”
The report highlights the ongoing shifts in the data centre landscape as stakeholders navigate the complexities of escalating demand and supply chain limitations, ultimately shaping the future of technology infrastructure in the region.
Source: Noah Wire Services
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