The biggest issue we face right now is the extraordinarily high price of energy . The cost has skyrocketed to the point where it becomes a real concern for large energy users , such as data centre owners . Can they pass these costs on to their customers ? Will the prices continue to rise ? Do they have the cashflow to manage this in their business model ? While the argument for a renewable generation strategy has always been around sustainability and the environment , today we need in-region renewables to protect supplies for European countries primarily for reasons of energy security and cost . Microsoft is taking a step in this direction , for example . Its Dublin data centre features banks of Lithium- Ion batteries approved for connection to the grid to help grid operators provide uninterrupted power should renewable sources such as wind , sun and sea be insufficient to meet demand .
This need to accelerate the generation of renewable energy is , effectively , an extension of last year ’ s outlook . But it ’ s much more acute now . It should serve as a wake-up call to governments across EMEA that they can no longer rely on traditional energy sources .
2 . Broken supply chains
COVID-19 had a tremendous impact on global supply chains across many sectors . However , once the pandemic receded , businesses everywhere were lulled into something of a false sense of security , believing they ’ d been through the worst .
No one was expecting a second body blow , a geopolitical crisis that ’ s proven to be even more disruptive to some supply chains – particularly the semiconductors and base metals vital to data centre construction – than COVID . As a high growth market , the data centre industry is highly sensitive to supply chain disruption , especially at a time when it ’ s looking to scale up .
The industry as a whole is still struggling with supply chain disruption and the current geopolitical landscape means this is only likely to continue .
3 . Tackling growing complexity
The requirement for digital growth has reached an unprecedented level . Every possible avenue has been explored to fulfil that need more simply , more cost-effectively and in the shortest possible time .
THE INDUSTRY AS A WHOLE IS STILL STRUGGLING WITH SUPPLY CHAIN DISRUPTION AND THE CURRENT GEOPOLITICAL LANDSCAPE MEANS THIS IS ONLY LIKELY TO CONTINUE .