I N F O G R A P H I C

Andrew Fettes-Brown , Head of Data Centres , Europe Global Board Director , RLB , lays the foundation of Rider Levell Beckett ’ s ( RLB ) recent Data Centre Trends 2024 report , providing an overview of the European supply chain landscape in the data centre market .

This , along with the continued growth of cloud , means that demand for data centres far outstrips supply . Operators and contractors have a commercial opportunity that most industries would envy .

But the stark realities of the physical world have complicated the picture . The war in Ukraine revealed the vulnerability of Europe ’ s construction supply chain and , although prices and lead times have relaxed since their peak in 2022 , they are still at a heightened risk of disruption .

The climate crisis is adding to the pressure . The sustainability requirements of regulators and occupiers are stoking demand for more efficient infrastructure components , while climate change itself places supply chain operations at risk of physical disruption from extreme weather events .

The data centre sector is rightly focused on improving efficiency and securing an affordable , sustainable supply of energy , without which its facilities cannot operate . But the supply of construction materials also warrants its attention , not least because – at the time of writing – geopolitical risk is once again threatening global trade routes .

We surveyed 475 executives from data centre operators and contractors across the UK and Europe to examine how the sector is experiencing construction supply chain risk . These executives expect supply chain risks to grow this year and the price of materials and components to increase with it .

This , combined with ever-longer lead times , is placing the industry under strain , our comprehensive survey shows . Despite growing demand , around a third of operators we surveyed have cancelled planned data centres due to supply chain constraints , while most contractors have turned down projects they deemed too risky .

A new , more collaborative approach is needed . Operators and contractors are already using contractual measures to share risk , our survey reveals , but this can go further .

Greater transparency can build trust , while helping both parties plan for the future , anticipate and mitigate risks , and meet demand both sustainably and profitably .

There is more at stake here than the data centre sector itself . Europe ’ s digital future depends on a resilient , sustainable data centre construction supply chain . �

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