Tech companies are expanding rapidly but supply chain bottlenecks threaten progress

Data center construction is essential to keep up with growing demand for generative AI in every sector of life. One key issue with data center construction is bottlenecks, which can occur through delays in hardware delivery, unrealistic timelines, and more.

Artificial intelligence, particularly generative AI, has taken America by storm, with Brookings reporting that 57% of survey respondents used AI in their everyday lives. Data centers must match current requirements and anticipate future growth within the artificial intelligence space.

How Are Data Centers Constructed?

A data center is more than just a regular building. Data centers require special design components specifically to protect the expensive machinery inside, as well as prevent problems such as overheating.

The power supply in a data center needs to be scalable to accommodate increased usage without straining already-existing resources. Additionally, fire protection elements are crucial in case components overheat or an accident causes an electrical fire.

All elements must work together seamlessly for the data center to function properly. If even one construction element is out of place, it can cause issues within the entire system.

What Are Some of the Supply Chain Bottlenecks Within Data Center Construction?

Supply chain bottlenecks can majorly impact the cost, timeline, and efficiency of a data center construction project. Here are some of the main bottlenecks that construction companies might face in the process.

Delays in Hardware Delivery

When delivery becomes an issue for the main components of data center systems, construction comes to a halt. Some of the most important hardware elements include electrical systems and cooling gear.

Even if the outer shell of the data center is complete, it remains useless until the essential hardware arrives. Data center construction companies will continue to lose money every day that they are not recouping their costs with the center up and running.

Unrealistic Timelines

Construction timelines for data centers should be optimistic, but also rooted in realism. They need to factor in potential problems that could lengthen the overall timeframe for the project.

When creating a timeline, consider current supply chains and construction rates, and leave extra room for unforeseen circumstances. Work with logistics experts from Stream Mission Critical to determine the best timeframe.

Complying With Codes and Regulations

Depending on the location of the data center, local codes and regulations may apply to construction. Understanding these before construction begins can prevent bottlenecks and issues when ordering supplies.

A city or municipality may require only using certain building materials, for example. If you have already purchased other materials, the process of canceling your order, sending back the materials, and ordering new ones can substantially increase the timeline.

What Other Issues Do Data Centers Face During Construction?

While supply chain bottlenecks are one of the primary problems that data centers contend with during construction, there are also some other issues that may cause unforeseen circumstances. Here are a few obstacles to watch out for.

Underestimating Water Requirements

Data centers rely on water for cooling. Without enough water, system components are at risk of overheating or failing.

Choosing a location with a plentiful supply of water, or devising a plan to use recycled water, is essential. Without planning, data centers can cause water shortages or exacerbate already-existing drought conditions.

Labor Shortages

Constructing a data center in a more rural area certainly has its benefits, but one of the drawbacks is finding labor. Smaller towns often do not have the populace required for data centers, or the data center is too far of a drive.

Labor shortages also signal poor planning and inefficiency. When it is difficult to predict how much labor you will need, it is often the case that you have fewer employees, rather than too many.

Public Opinion

Public opinion on data centers is mixed. Heavy AI users welcome the expansion of the technology. Others believe that data centers use too much water and electricity, putting strains on local utility grids.

Before beginning data center construction, meet with the public and, if possible, work to resolve any of the concerns that they have.

Frequently Asked Questions

Are Data Centers Becoming Easier To Build?

Yes. As companies fine-tune their construction, building new data centers turns into streamlined processes, rather than time-consuming projects that drain resources.

As AI usage continues to grow every day, there is even more pressure on companies to free up space in data centers. Speed and ease of installation are crucial to ensure that companies keep up with rising demand.

Modular data centers are becoming a major player in the construction space. Rather than having to build the centers from the ground up, parts come in prefabricated pieces, and companies simply need to put them together.

Where Is the Best Place To Build a Data Center?

One of the keys to a successful data center is sustainability, which should play a large role in location. Data centers should be built in areas with lower electricity costs and high alternative energy resources, such as solar and wind, to limit strain on local power grids.

Newer data centers are considering more factors before breaking ground, such as:

Codes and regulations
Energy consumption
Local sentiment
Proximity to residential areas

Is Data Center Construction Affecting Black Communities?

Yes. The wave of data center construction has affected many communities that have a majority Black population. Capital B News reports that data center investment in the South is expected to reach $200 billion, on top of 1,200 data centers already present in the region.

Data centers may also bring increased prosperity to areas as well. Areas with little economic growth can benefit from job opportunities in data center construction or management.

Learn More About the Critical Infrastructure of Data Centers

As data center construction ramps up all over the world, it is important to understand what types of challenges these construction problems combat on an everyday basis. With this guide, you can learn more about how supply chain strategy affects the construction timeline of data centers.

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