Navigating Data Center Supply Chains

Data center growth and the trends driving demand

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Demand for data center capacity continues to accelerate. According to a McKinsey analysis, US companies are projected to invest more than $2.8 trillion in data center infrastructure by 2030, representing over 40% of the global total of nearly $7 trillion in investment. This surge is driven primarily by Microsoft, Google, Amazon, and Meta, who are building large scale facilities to support frontier AI models. Data centers account for roughly ~5% of total U.S. electricity consumption, highlighting the growing energy footprint of today’s facilities.

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Hyperscale expansion and higher power density

Modern hyperscale facilities are larger and more power-intensive than prior generations. Rack densities have increased sharply due to GPU-based AI systems, driving higher volumes of servers, liquid cooling equipment, and electrical infrastructure per site. Analysts project that AI workloads could increase data center power demand by 5–10× over the next decade, concentrating spending on power, cooling, and facility infrastructure.

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Power availability as a limiting factor

Power constraints have become one of the biggest bottlenecks in datacenter development. Grid interconnection delays are pushing operators to explore on-site generation, battery storage, and alternative energy solutions. This shift increases the volume and complexity of oversized and heavy equipment that must be transported and installed safely.

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Edge and regional data centers

In parallel with hyperscale growth, edge data centers are being deployed closer to end users to support latency-sensitive applications. These projects tend to be smaller but more geographically dispersed, requiring flexible logistics planning and precise delivery coordination.

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Sustainability and efficiency requirements

Energy efficiency, carbon reduction, and responsible equipment lifecycle management are now standard expectations. Cooling systems, power infrastructure, and IT hardware are being redesigned for efficiency, which affects packaging, transport methods, and end-of-life handling.

What the data center supply chain actually looks like

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Data center supply chains are not linear. They involve tightly coordinated flows of equipment, materials, and services across multiple stages of construction and operation.

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Core components in motion

Typical data center logistics programs include:

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• IT hardware (servers, GPUs, networking equipment)
• Racks and prefabricated modules
• Cooling systems (air, liquid, or hybrid)
• Electrical infrastructure (switchgear, transformers, UPS systems)
• Power generation and energy storage equipment

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Many of these assets are high-value, oversized, fragile, or time-sensitive. Delays or damage can halt entire projects.

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Timing is critical

Deliveries must align precisely with construction milestones. Early arrivals create storage and security risks; late arrivals delay commissioning and revenue generation. Just-in-time delivery models, supported by real-time visibility and contingency planning, are increasingly standard.

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Security and compliance

Data center equipment often moves across borders and through multiple regulatory environments. Secure handling, chain-of-custody controls, and customs expertise are essential—especially for AI hardware and energy infrastructure subject to export or import restrictions.

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Installation and lifecycle support

Logistics does not stop at delivery. Many projects require on-site staging, equipment positioning, coordinated handoffs to installers, and eventually decommissioning and recycling as technology refresh cycles accelerate.

Challenges facing data center developers in 2026

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Despite strong demand, data center projects face ongoing constraints:

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• Supply bottlenecks for transformers, switchgear, and specialized cooling equipment
• Power delays that stall otherwise completed facilities
• Site access challenges, especially in emerging or remote markets
• Rising costs tied to congestion, security requirements, and expedited shipping

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Addressing these challenges requires logistics partners that understand data center construction sequencing, power-related equipment, and risk mitigation—not just transportation.

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Why specialized logistics matters

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Data center operators increasingly view logistics as a strategic function, not a commodity service. The right logistics partner helps by:

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• Reducing schedule risk through precise coordination
• Protecting high-value equipment with secure handling and tracking
• Supporting sustainability goals through efficient routing and lifecycle planning
• Scaling alongside multi-phase campus developments

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As data centers grow larger, more distributed, and more complex, logistics becomes a critical enabler of speed, reliability, and cost control.

Looking ahead

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Data center investment is expected to remain strong through the remainder of the decade, fueled by AI adoption, cloud growth, and digital infrastructure expansion. While power availability and supply chain constraints will continue to shape development timelines, projects that align early with experienced logistics planning will be best positioned to succeed.

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In today’s market, moving equipment efficiently is only part of the equation. Delivering certainty, security, and execution discipline is what keeps datacenters on track—and operational.