Data centre demand surges

Latest research from leading construction and property management consultant, Rider Levett Bucknall (RLB) reveals that while demand for data centres is rising faster than expected, supply chain constraints are creating significant challenges.

  • Sunday, 23rd March 2025 Posted 1 year ago in by Phil Alsop

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 that 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.

Key Findings include:

Capacity Surging

• Commissioned capacity has surged by nearly 300% since 2023 with operators averaging 47MW each this year.

• 63% agree that the influx of private equity investment is intensifying demand for data centre materials and infrastructure.

Growth of the Retrofit Market

• The market for data centre retrofits is expanding, with 66% of respondents planning to retrofit at least a quarter of their estates in the next five years.

Rising Demand for Power

• AI is driving soaring demand for energy, power density and liquid cooling.

• 73% of respondents say power density requirements from data centre occupants are increasing.

• 73% of those surveyed anticipate that small modular reactors (SMRs) will become a widespread power source for data centres in Europe in the next 15 years.

• By 2030, operators expect 61% of their estates to be liquid cooled.

Escalating Price Pressures

Respondents estimated price increases across key areas will rise +5% YOY, including:

- 3.0% uninterruptable power supply

- 2.8% battery energy storage systems

- 2.2% generators.

Mitigating Supply Chain Risks

With the need for proactive planning and early supplier engagement, it is no surprise that:

• - 44% of operators and contractors are leveraging technology to track suppliers and assets

• - Only, 32% have implemented risk-sharing clauses in their contracts.

• - However, only 21% have broadened their supply base and under 1 in 5 (19%) of respondents have adopted vendor managed inventory agreements.

Nikki Venetsanakis, RLB’s Head of Advanced Tech comments, “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.” 

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