Overcoming Data Center Supply Chain Challenges

Demand for data center services remains high, prompting significant investments in new construction and expansion. However, ongoing supply chain challenges remain a check on the industry.

In a survey by the Uptime Institute, 75 percent of organizations reported some type of data center supply chain disruption or delay. That represents a 60 percent increase over the previous year. Although most disruptions are “minor” or “moderate, 20 percent of data center operators reported long delays.

AFCOM’s 2023 “State of the Data Center Report” found that 94 percent of operators had experienced supply chain issues. Operators must incorporate supply chain delays into the planning process and consider various techniques to minimize the impact of these issues.

Why Supply Chain Challenges Are Prevalent

Pandemic-related shutdowns made it difficult to get data center equipment. This created a backlog of orders that hasn’t been fully resolved. Some IT equipment is shipping much faster than it did during the pandemic. However, 59 percent of respondents to the AFCOM study said that servers and switches remain in short supply. More than half (51 percent) of data center operators have trouble sourcing UPSs and other power systems.

Geopolitical disruptions play a major role in persistent supply chain challenges, as do shipping problems. The ongoing shortage of semiconductors is also a factor.

Problems Created by Supply Chain Challenges

Delayed time-to-value of new projects is the primary problem created by supply chain challenges. Investors want data centers to ramp up new capacity quickly to meet demand. However, some equipment has a lead time of a year or more. If one critical component is unavailable, data center operators cannot bring their facilities online.

Supply chain issues can also result in unplanned outages. In the 2023 AFCOM survey, 44 percent of respondents said they had experienced an outage because needed parts were unavailable. Just 25 percent reported such an outage in the previous year’s survey.

Tips to Mitigate Supply Chain Challenges

Supply chain delays may be inevitable, but data center operators can take steps to minimize the effects on project timelines. 

Build Delays Into Planning

Many data center operators have shifted away from just-in-time provisioning due to supply chain challenges. The key is to monitor market conditions and the lead times for specific products and adjust expectations accordingly. Operators should factor those lead times into project planning and become more proactive about ordering equipment. 

For commonly used products with long lead times, operators should maintain sufficient inventory to minimize delays and the potential for downtime. Strategic investments and inventory management will continue to play a key role.

Consider Modular

Modular infrastructure systems offer an agile and scalable approach to data center buildouts. The best modular systems allow for flexibility without concern for interoperability. Components are pre-engineered to work together, ensuring that everything will fit together even if different options are chosen. Data center operators can substitute components as needed based on availability. 

The main benefit of modular designs is speed to market. Prefabrication ensures new infrastructure can be deployed as quickly as possible. However, the high degree of standardization also allows operators the flexibility to shift and reassign infrastructure equipment such as switch gears, generators, chillers, UPS, RPP, and PDU components quickly and easily to other regions to meet market demand. 

Micro data centers are also sometimes described in the context of modular design. These are typically self-contained cabinets that are ready to be deployed in traditional facilities, network closets, and edge locations. With power management, UPSs, monitoring, and more, these cabinets streamline procurement and simplify deployment.

Beyond the Builder

Utility infrastructure constraints are an industry-wide issue that is adjacent to supply chain challenges. Local utilities are struggling to keep up with the pace of data center development. Traditional power infrastructure simply isn’t built to accommodate the intense needs of modern data centers. Those utilities companies are working to upgrade but are not immune to their own supply chain and labor constraints. Therefore, companies are investing in more efficient technologies and exploring unique approaches to data center power procurement. 

Choose the Right Partners

Agile and responsive suppliers can help data center operators minimize supply chain constraints. The best suppliers serve as true partners, stocking strategic products and offering creative approaches to help mitigate risk.

Helping to Ease Supply Chain Constraints

Enconnex does everything we can to ease supply chain concerns. We manufacture many of our solutions and stock many products locally in Reno, Nev., for fast shipment. We have long-established relationships with global supply chain and logistics partners and offer as many TAA-compliant products as possible, including UPSs, PDUs, and our DefenseShield cabinet. If you’re struggling with supply chain challenges, contact one of our specialists to discuss your needs.