Data Center Supply Chain

When COVID-19 sent supply chains into a tailspin at the same time that it skyrocketed demand for data center capacity, a perfect storm was born. Exponentially rising demand and supply chain constraints resulted in the lowest data center inventory we’ve ever seen and made it increasingly difficult to deliver what customers need— massive amounts of data center capacity, very quickly.

At Stream Data Centers, we saw the trend emerge, and we responded to it. In one project delivered in 2023, we were able to deliver much faster than the market average (16 months instead of over 24), despite persistent high demand and constrained supply. For some data center operators, the perfect storm has meant roadblocks to development. For Stream, it has been an opportunity to extend our competitive advantage.

The way we’ve adapted to overcome data center supply chain challenges is an example of how we respond to a market change—with speed and agility. Responsiveness, adaptability, and agility position Stream to lead whatever comes next.

It’s likely that supply chain constraints will begin to ease. But demand will continue to rise at an increasingly rapid pace. Growing investments in new technologies—in particular, the increasing use of artificial intelligence, which represents a sea change from the technology developments that came before—will force new changes. Managing demand with utility partners that are often capacity-constrained, accommodating new approaches to cooling, and increasing focus on sustainability are examples of other new market dynamics we are ready for.

Explore more in our executive brief Smooth Sailing in the ‘Perfect Storm’: Navigating Supply Chain Challenges.