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Europe needs 3,000 new data centers and won’t be able to build them on time

Europe “desperately” needs more data centers to serve the digital transformation needs of its companies. And yet, he finds himself in a paradox: right now, the old continent is facing serious problems of scarcity of materials, skilled labor and equipment to be able to build the facilities it needs.

The alarm was raised this week by Agreko, a company specializing in the supply of energy solutions, which in a recent report ensures that demand is far exceeding supply in the data center sector, while these obstacles , are preventing contractors from delivering the new facilities on schedule.

The report quotes UK property services company Savills as saying there are not enough data center projects planned in Europe in the next three years to meet the projected increase in demand. According to this report, by the middle of the decade it will take more than 3,000 new locations to meet anticipated data storage and processing needs.

And yet achieving this will be a challenge, not least because construction companies face numerous problems that are causing delays. As we have already pointed out, the shortage of heavy machinery due to the high levels of demand from competing industries, the connection to the electricity grid and the shortage of qualified labor and raw materials, is having a direct impact on the sector.

They are not the only ones. Complying with the new environmental regulations required by the EU regarding the emission of carbon dioxide in new buildings is also causing delays since sometimes suppliers cannot present sustainability certificates. In addition, in many cases, new projects are facing direct opposition from local communities and this sometimes results in litigation that paralyzes the construction of data centers for months, or even years.

With regard to the adoption of renewable energy in this type of facility, the lack of skills is reflected in this report as the main problem, as well as the ability of this type of energy to meet demand and the risks associated with change.

Currently in countries such as the United Kingdom, Ireland, the Netherlands and Sweden the average delay for the delivery of a CPD already exceeds two monthsand the report also points out that the cost of access to the network or the cost of land are becoming the ones that are most taken into account when determining the location of a new data center.

Ways to avoid delays caused by supply chain disruption include spot purchases to meet short-term demand, using temporary rental equipment such as generators, as well as maintaining a higher equipment inventory and limiting to extend the deadlines. But given the current demand, Aggreko says. this will soon become untenable, creating more problems later.

Although some people consider that the situation is circumstantial and that it should be able to be resolved in the coming months, others like Billy Durie, Global Head of Aggreko’s Data Center Sector, states that market disruptions, rising costs and regulatory pressures will cause challenges beyond the control of the contractor to lengthen, without a defined horizon, the deadlines to go live. new projects are underway.

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