The data centre market is entering a phase of unprecedented growth – but its trajectory will be shaped less by demand and more by the industry’s ability to deliver, writes Nikki Venetsanakis, head of advanced tech UK & Europe at RLB
RLB’s latest Data Centre Trends report showed that the growth of the data centre market continues at pace, with an expected 42% more capacity commissioned in 2026 than in 2025. This equates to a staggering 319% increase since just 2023, driven by AI, 6G (41%) and cloud computing (38%), high performance computing (33%) and sustainable IT (32%).
However, even before the Middle East conflict, we were seeing a supply chain under pressure, with delivery dependent on access to power (35%), permitting delays (33%) and pressure on materials, equipment and specialist labour (29%).
Geopolitical events impacting supply chain but resulting in collaborative practice
While our research captured a snapshot in time prior to the Middle East conflict, it reflected a market navigating several years of geopolitical unrest with the Ukraine war, US tariffs, rises in inflation and other macro impacts.
For us at RLB, this has led to increased collaboration with clients both in the data centre market and the wider built environment, supporting their supply chain and procurement management. Advising on risk sharing strategies, a broadening of supplier bases and other strategies to help minimise risk and disruption.
This move to more collaborative working was acknowledged in our report, with 42% of operators saying they have already entered risk-sharing partnerships and 64% of those surveyed believe that partnerships between developers, OEMs and energy providers will unlock new energy capacity.
While supply of materials and labour remain key components to drive delivery, the number one priority for data centre development was energy strategy and securing grid connections, negotiating private power arrangements and exploring co-location with generation or storage assets.
Some 69% of those questioned in RLB’s Data Centre Trends report said private Power Purchase Agreements (PPAs), on-site solar and battery storage are expected to help reduce reliance on constrained public grid infrastructure in the next three years and 63% of respondents agreed that data centres will increasingly relocate with other advanced facilities, such as semiconductor fabrication plants, AI/quantum labs and clean energy storage sites.
However, there is a recognition that although sustainable energy is high up the wishlist of those surveyed and becoming more of a prerequisite of regulators, investors and customers, less than half of those surveyed in our report (41%) have already adopted sustainability measures.
This is likely to be a result of the complexity and cost of deployment of sustainable energy alternatives, with many options like Small Modular Reactors (SMRs) still in their infancy. It was recognised that further investment and development need to happen first to meet the demand needed by the data centre industry.
Price increases are expected and penalties for late delivery are significant
Meanwhile, present markets are seeing price and inflation, particularly with battery energy storage systems (BESS) at a 4.3% increase, copper cable 4% and CRAC/CRAH at 3.7%.
There is no doubt that the conflict in the Middle East will add to these price increases, even in the shorter-term, impacting materials that are in transit through the Strait of Hormuz.
So how can data centre developers deliver digital infrastructure projects with certainty?
Having worked with operators, developers and investors across the entire asset lifecycle, there are several strategies that can help:
- De-risk power and permitting early: Through data-driven site analysis, grid intelligence and early engagement with utilities, improving the likelihood of viable power and consent outcomes.
- Treat energy as infrastructure, not a constraint: Supporting integrated energy strategies, including private PPAs, microgrids, co-location and phased power delivery models that balance cost, resilience and sustainability.
- Strengthen supply chains under pressure: Using early procurement, framework agreements, risk-weighted cost planning and supplier diversification to reduce exposure to long-lead equipment and price volatility.
- Design for flexibility at scale: Enabling intelligent standardisation and modularisation while maintaining adaptability for evolving AI power density and liquid-cooling requirements.
- Improve predictability through information management: Embedding structured data, digital visibility and lifecycle cost management to support decision-making, ESG reporting and investor confidence.
What is clear is that we are at the cusp of a new infrastructure cycle – driven by AI and other new technologies. This new era will see even more growth, which could feel intimidating or challenging for developers and operators yet those organisations that will succeed in this new era are those that industrialise delivery.
Working with trusted partners to navigate risk and pre-empt challenges ahead, and investment in data-driven site selection to reduce power and permitting risk will become essential. This means approaching energy strategy with creativity and treating supply chain management as a strategic discipline, not a transaction function.
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