AI is powering a boom in demand for data centres – but can supply chains withstand the pressure? Nikki Venetsanakis, head of advanced tech, UK & Europe at Rider Levett Bucknall, takes a look
Rider Levett Bucknall’s second annual Data Centre Trends report showed the industry is experiencing unparalleled growth.
Last, over 470 data centre operators and contractors told us they projected a 65% increase in commissioned capacity over the next 12 months.
However, this year’s 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.
Key drivers of growth
The influx of private equity investment, coupled with AI-driven demand, 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.
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.
Supply chain struggles and cost pressures
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’t meet capacity demands.
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.
Seizing opportunities through strategic planning
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.
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.
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.
10 key strategies for supply chain resilience
1. Retrofitting ageing data centres: 10–15-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.
2. Select strategic locations: 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.
3. Leverage data for better decision-making: Implement an information management system to ensure real time, accurate data is available for decision making.
4. Innovate in energy sourcing: 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.
5. Ensure regulatory compliance: Make sure when building a new facility or retrofitting that accreditations and standards are compliant with current regulations such as LEED and BREEAM.
6. Secure connectivity and sustainability: Beyond power, ensure adequate fibre connectivity for high speed, low-latency data transmission, as well as access to sustainable water sources.
7. Leverage digital technology for supply chain visibility: Real-time analytics and dashboards can help identify potential disruptions before they occur.
8. Prioritise adaptability in design: Modular design and build techniques allow facilities to evolve in response to shifting workloads, emerging technologies and supply chain constraints.
9. Mapping supply chain for resilience to mitigate risks: Identify risks related to regulations, trade policies and cybersecurity threats. Diversification of the supply
chain to avoid over reliance on a limited pool.
10. Monitor geopolitical risks: Work with experts to explore alternative suppliers and logistical routes to mitigate potential disruptions.
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.
To read the full RLB Data Centre Annual Trends report, please click here.
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