Geopolitics deepens supply chain worries

The COVID-19 pandemic — and the subsequent disruption to supply chains — demonstrated the data center industry’s reliance on interdependent global markets and the components they produce. Although the data center sector was just one of many industries affected, the extensive variety of the often complex electrical and mechanical equipment involved exacerbated supply chain problems.

Engine generators illustrate the problem: they typically comprise hundreds of constituent parts shipped from at least a dozen countries spanning North America, Europe and Asia. Shortages of seemingly ordinary components, such as voltage regulators, air filters, valves or battery terminals, can lead to major delays in delivery. Even when the production of data center equipment (such as lead-acid batteries and fiber optic cables) is relatively localized, pricing and availability will be subject to changing dynamics in global markets.