{"id":151447,"date":"2025-05-28T09:29:18","date_gmt":"2025-05-28T08:29:18","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=151447"},"modified":"2025-05-28T09:37:54","modified_gmt":"2025-05-28T08:37:54","slug":"data-centres-boom-assessing-supply-chain-strains-amid-unprecedented-demand","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/data-centres-boom-assessing-supply-chain-strains-amid-unprecedented-demand\/151447\/","title":{"rendered":"Data centre boom: Assessing supply chain strains amid unprecedented demand"},"content":{"rendered":"<h2>AI is powering a boom in demand for data centres \u2013 but can supply chains withstand the pressure? Nikki Venetsanakis, head of advanced tech, UK &amp; Europe at Rider Levett Bucknall, takes a look<\/h2>\n<p>Rider Levett Bucknall\u2019s second annual Data Centre Trends report showed the industry is experiencing unparalleled growth.<\/p>\n<p>Last, over 470 data centre operators and contractors told us they projected a 65% increase in commissioned capacity over the next 12 months.<\/p>\n<p>However, this year\u2019s report, where over 535 data centre stakeholders were surveyed, shows that demand has surpassed expectations, with commissioned capacity having surged by nearly 300% since 2023, and operators averaging 47MW each in 2025.<\/p>\n<h3>Key drivers of growth<\/h3>\n<p>The influx of private equity investment, coupled with <a href=\"https:\/\/www.pbctoday.co.uk\/news\/digital-construction-news\/construction-technology-news\/most-engineering-firms-in-uk-anticipate-digital-transformation-will-help-drive-ambitious-profit-and-headcount-goals\/150063\/\" target=\"_blank\" rel=\"noopener\">AI-driven demand<\/a>, is accelerating the need for energy, power density and liquid cooling. Operators anticipate 61% of their estates will be liquid cooled by 2030, and 73% of respondents report increasing power density requirements from data centre occupants.<\/p>\n<p>The market for data centre retrofits is also expanding, with 66% of respondents planning to retrofit at least a quarter of their estates in the next five years.<\/p>\n<h3>Supply chain struggles and cost pressures<\/h3>\n<p>Despite this rapid growth, the industry faces significant supply chain challenges. Over 70% of respondents believe the supply chain is failing to keep pace, and 53% fear that the sector won\u2019t meet capacity demands.<\/p>\n<p>Adding to the pressure, escalating costs are impacting the market, with an estimated average price increase of 5% year on year, including 3.0% uninterruptable power supply, 2.8% battery energy storage systems and 2.2% generators.<\/p>\n<h3>Seizing opportunities through strategic planning<\/h3>\n<p>However, at RLB we believe the pace of growth and the supply chain constraints can be seen as an opportunity as well as a challenge.<\/p>\n<p>To navigate these constraints, industry leaders must adopt a proactive, forward-thinking approach. Early supplier engagement, flexible planning and adaption to market shifts will be essential.<\/p>\n<p>With only 21% having broadened their supply chain and under one in five of respondents adopting vendor-managed inventory agreements, there is opportunity for the industry to work differently.<\/p>\n<h3>10 key strategies for supply chain resilience<\/h3>\n<p><strong>1. Retrofitting ageing data centres<\/strong>: 10\u201315-year-old data centres can serve many needs including meeting the AI demand and enhancing efficiencies to comply with new regulations. Early design and commercial reviews are critical for cost-effective refits.<\/p>\n<p><strong>2. Select strategic locations<\/strong>: Collaborate with designers to develop cost-effective facilities in high-growth regions, considering infrastructure, current and future power availability and analysing zoning regulations and local permitting processes.<\/p>\n<p><strong>3. Leverage data for better decision-making<\/strong>: Implement an information management system to ensure real time, accurate data is available for decision making.<\/p>\n<p><strong>4. Innovate in energy sourcing<\/strong>: Think laterally on the future of energy, considering innovative solutions and long-term strategies. Consider collaborating with local energy providers or exploring the use of small or micro-modular reactors.<\/p>\n<p><strong>5. Ensure regulatory compliance<\/strong>: Make sure when building a new facility or retrofitting that accreditations and standards are compliant with current regulations such as LEED and BREEAM.<\/p>\n<p><strong>6. Secure connectivity and sustainability<\/strong>: Beyond power, ensure adequate fibre connectivity for high speed, low-latency data transmission, as well as access to sustainable water sources.<\/p>\n<p><strong>7. Leverage digital technology for supply chain visibility<\/strong>: Real-time analytics and dashboards can help identify potential disruptions before they occur.<\/p>\n<p><strong>8. Prioritise adaptability in design<\/strong>: Modular design and build techniques allow facilities to evolve in response to shifting workloads, emerging technologies and supply chain\u00a0 constraints.<\/p>\n<p><strong>9. Mapping supply chain for resilience to mitigate risks<\/strong>: Identify risks related to regulations, trade policies and cybersecurity threats. Diversification of the supply<br \/>\nchain to avoid over reliance on a limited pool.<\/p>\n<p><strong>10. Monitor geopolitical risks<\/strong>: Work with experts to explore alternative suppliers and logistical routes to mitigate potential disruptions.<\/p>\n<p>With demand growing faster than expected, delivering projects on time and within budget requires a strategic, proactive planning approach. Innovation and collaboration \u2013 particularly through early supplier engagement \u2013 will be key to ensure scalable, sustainable infrastructure for the future.<\/p>\n<p>To read the full RLB Data Centre Annual Trends report, please <a href=\"https:\/\/www.rlbinsights.com\/reports\/data-centre-trends-report-2025\/\" target=\"_blank\" rel=\"noopener\">click here<\/a>.<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>AI is powering a boom in demand for data centres \u2013 but can supply chains withstand the pressure? Nikki Venetsanakis, head of advanced tech, UK &#038; Europe at Rider Levett Bucknall, takes a look. <\/p>\n","protected":false},"author":24,"featured_media":151452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[307],"tags":[172725,172902,94656,173031,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[173058],"class_list":{"0":"post-151447","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-energy-news","8":"tag-artificial-intelligence","9":"tag-data-centres","10":"tag-digital","11":"tag-pbc-today-may-2025","12":"tag-supply-chain"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Data centre boom: Assessing supply chain strains amid unprecedented demand<\/title>\n<meta name=\"description\" content=\"AI is powering a boom in demand for data centres \u2013 but can supply chains cope? 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