Data center growth is driven by growing awareness among businesses of the benefits cloud services can provide, and pressure to replace local data centers across regions. As the world become more and more on IT services.
Last year due to crisis’ across the global market affected the global supply chains hard. The tightness of supply for many key components, chips and major electrical equipment became hard to obtain for many manufacturers. The lack of production dramatically increased the competitiveness of the data center industry. The increased demand for capacity ensued but did not stop the growth need for data center industry.
Much of this growth is supported by large global technology companies. As cloud and internet giants grow, large sites will become more common and their needs are likely to be prioritized. Hyperscale facilities have a profound impact on mechanical, electrical and plumbing supply chains, both in terms of equipment availability and design.
The number of these locations and the sales volume they represent means that equipment suppliers are often encouraged to prioritize the needs of huge customers. Many people in the supply chain are concerned about this. A study by the Uptime Institute found that 63% of vendors said that over the next three to five years, large cloud and internet companies would limit or reduce competition among equipment vendors.
The purchasing power of these internet giants is expected to change ecosystem dynamics. Hyperscalers have their own technology expectations and price points that vendors cannot meet. This could lead hyperscale operators to further innovate their products and integrate them more closely with equipment in the data center, a potential threat to manufacturers of embedded power and cooling equipment.