"BCS Consultancy says the Iran conflict is adding to supply-chain disruption for datacenter construction projects, bumping up material costs and causing shortages due to the closure of the Strait of Hormuz. The firm claims construction firms are seeing increases of up to 20 percent in the cost of certain building materials, while in some cases, the quantity available for delivery has been reduced to a quarter of the required amount on order."
"Oskar Lampe says oil-based building materials are becoming scarcer and more expensive, as about a fifth of the global supply flows through the Strait of Hormuz in the Middle East. Because producing materials such as steel, aluminum, and cement is very energy-intensive, the construction industry is starting to feel the effects of the blockade, he claims. "For datacenter construction, the key components of which consist of exactly these materials, this is a turning point," he stated."
"Andrew Buss says: "We're hearing some reports of broader supply chain disruption and availability issues - particularly for things like high-voltage transformers and copper supply - around datacenter builds from even before the war in the Middle East and the resulting closure of the Straits of Hormuz. "So the closing of the Straits is certainly not helping, but this has been an issue for some time, resulting in more frailty and susceptibility to disruption, and therefore likely to have a disproportionate impact.""
"IDC warned that IT equipment supplies are facing further volatility as the Iran war has strained global logistics through rising energy costs and freight routes being disrupted. The pressure is described as affecting datacenter construction and broader technology supply chains, with increased fragility and susceptibility to disruption."
Iran conflict-related closure of the Strait of Hormuz is disrupting supply chains for datacenter construction. Builders report increases of up to 20% in the cost of certain building materials and, in some cases, delivery quantities reduced to about a quarter of ordered amounts. Oil-based building materials are becoming scarcer and more expensive because roughly a fifth of global supply flows through the Strait. Producing energy-intensive materials such as steel, aluminum, and cement is increasingly affected. Reports also indicate broader supply chain disruption and availability issues for high-voltage transformers and copper supply. IT equipment supplies face further volatility as logistics are strained by rising energy costs and disrupted freight routes.
#datacenter-construction #supply-chain-disruption #material-cost-inflation #strait-of-hormuz #energy-intensive-manufacturing
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