NEWS / Infrastructure Intelligence / Demand for data centres causing supply chain struggles

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24 MAR 2025

DEMAND FOR DATA CENTRES CAUSING SUPPLY CHAIN STRUGGLES

Contractors are struggling to keep up with rising demand for data centre development.

Research from construction and property management consultant Rider Levett Bucknall (RLB) found more than 70% of respondents believe the supply chain is struggling to keep pace and 53% fear that the sector will be unable to meet capacity demands.

RLB’s annual Data Centre Trends report, based on insights from 535 stakeholders across data centre operators and contractors in the UK and Europe, indicates while fewer respondents see supply chain risks increasing compared to last year, prices continue to climb and the chasm between demand and supply is widening.

Nikki Venetsanakis, RLB’s head of advanced tech, said: “With demand growing faster than expected, delivering projects on time and within budget requires a strategic, proactive planning approach. Innovation and collaboration – particularly through early supplier engagement – will be key to ensure scalable, sustainable infrastructure for the future.”

The report found commissioned capacity has surged by nearly 300% since 2023 with operators averaging 47MW each this year.

Of those questioned, 63% agreed the influx of private equity investment is intensifying demand for data centre materials and infrastructure.

Growth in the retrofit market is also putting pressure on the sector – with 66% of respondents planning to retrofit at least a quarter of their estates in the next five years.

Click here to read the full report.

 

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