How to Reduce Supply Chain Risks on Your Data Center Project

Demand for data center space continues to increase, but organizations are facing a number of difficulties that delay the buildout of new infrastructure. Some markets have limited available power and community resistance to new data center facilities. Data centers are also competing with industrial developers for available land.

However, supply chain constraints and price volatility remain the biggest hurdles to data center development. Shortages of steel, aluminum, and copper impact the cost and availability of many data center infrastructure products, including racks and cabinets, cabling, and power distribution systems. Some microchips remain in short supply, which affects not only IT equipment but many other devices that have embedded processors and memory.

China reintroduced COVID lockdowns in 2022, which disrupted the supply of many components and subassemblies. The war in Ukraine has created further disruption and increases in fuel prices that impact costs. High fuel costs, labor shortages, and other challenges are limiting the ability of shipping companies to transport products.

Organizations must build resiliency into their supply chain to avoid significant delays in their data center buildout projects. One of the best ways to reduce supply chain risks is to partner with a provider such as Rahi, with expertise in global procurement and logistics.

Planning Ahead

Rahi’s experienced project managers are adept at developing project timelines with enough padding to absorb the impact of unforeseen circumstances. We also recognize that the scheduling of personnel is thrown off when equipment is delayed. Our project road maps allow sufficient time to get skilled resources onsite.

To improve supply chain resilience, Rahi engages in contingency planning, such as developing relationships with alternative sources in different geographic areas to reduce dependencies on individual suppliers. We can often identify other sources for equipment if a primary supplier is experiencing delays, and recommend alternate hardware to help keep things moving.

We also leverage vast amounts of data associated with the procurement and distribution of data center infrastructure and IT products. Analyzing data from across the entire supply chain ecosystem improves decision-making and forecasting and helps us identify potential bottlenecks. In addition, we can maintain an inventory of critical components in our facilities worldwide to reduce the impact of sudden disruptions.

Global Reach

One of the primary benefits of working with Rahi is our ability to serve as a one-stop source for data center projects around the world. Because it’s not always possible to purchase products in-country, we have developed global purchasing, distribution, and logistics capabilities to support multinational customers. Our logistics team has extensive experience in the import and export of data center infrastructure products and IT solutions, with well-defined processes that help ensure orders are delivered on time and meet regulatory requirements.

Our team understands how to work through complex trade restrictions, taxation, and other red tape. We can serve as the importer of record, handling all the paperwork and ensuring compliance with local laws and regulations. We can also provide invoices in local currency, and handle product returns locally as well.

Supply chain disruptions are likely to complicate IT procurement for months to come, but they don’t have to bring your data center projects to a standstill. With proper planning, efficient use of existing resources, and the right partnerships, you can keep these initiatives on track throughout the coming year. Contact us to learn more about how Rahi can help you manage supply chain challenges.