March 17, 2023
According to a recent Uptime Institute survey, data center operators continue to face significant supply chain challenges.
Despite improvements in supply chain operations in other sectors of the IT industry, the survey discovered that disruptions increased by 60% in the previous year. According to the Uptime Institute’s Supply Chain Survey 2022, one in every five data center operators has experienced significant procurement delays or disruptions in the last 18 months.
Shortages of seemingly innocuous components such as voltage regulators, air filters, valves, and battery terminals are causing delays in the delivery of engine generators, which are typically made up of hundreds of constituent parts shipped from at least a dozen different countries. Larger operators appear to bear the brunt of supply issues.
Rising geopolitical tensions are also posing new threats. The geopolitical dynamics between the US-led Western alliance, China, and Russia are creating new threats. The profile of these emerging geopolitical risks differs significantly from that of other major events because geopolitical events are more difficult to model because they are primarily the result of highly centralized political decision-making in Beijing, Brussels, Moscow, and Washington DC.
To address these challenges, data center operators are seeking alternative suppliers, increasing material inventory, and sourcing supplies locally. Despite these efforts, however, the increasing disruptions suggest that more needs to be done.
While there have been some reported instances of improvements, the survey indicates that supply chain disruptions are unlikely to go away anytime soon. Data center operators should maintain a proactive approach to minimizing the impact of supply chain issues on their businesses.
The sources for this piece include an article in DataCenterKnowledge.
