Has Linesight Found a Major Problem in Data Centre Cooling?

Data centres consume an incredibly large amount of energy, contributing to around 1.3% of all global electricity usage.

As demand for AI and advanced computing continues to skyrocket, data centres' thirst for energy is only going to grow, with research suggesting that data centre energy usage will surge six-fold within the next decade.

A huge part of data centres' energy consumption is down to cooling systems, which are used to maintain the performance of the computers. Consequently, cooling innovations are on the rise, targeting improvements to efficiency and sustainability.

However, the construction industry — particularly within the data centre sector — is facing some big challenges.

New research from Linesight shows that extended lead times for cooling equipment are becoming a problem. What's more, rising copper prices are set to impact supply chains across industries like data centres, as well as EVs.

Why data centres are so important

Data centres are pivotal in today’s digital economy. These facilities serve as the backbone for digital life, from internet services to cloud computing, as well as emerging technologies like AI.

As demand for data processing capacity surges, the need for efficient cooling solutions becomes paramount. Cooling equipment is essential to maintain optimal operating temperatures within these data centres.

However, Linesight’s report indicates that supplier capacity issues are leading to bottlenecks, meaning supply can't quite match demand right now.

This delay poses a risk not only to the timely completion of new data centre projects but also to their operational efficiency and energy consumption.

Michael Riordan, Linesight’s UK Managing Director, says: “AI and densification of data centres is keeping the sector on a high-growth trajectory and spurring investment in the UK. It brings with it an increased need for power and cooling solutions.

"Improving grid connectivity to attract private investment and to maintain construction output is becoming more urgent."

“Cooling solutions are rapidly emerging as a critical trend to monitor, with supplier capacity and lead times starting to be impacted. We will be working closely with clients to deepen the supply chain relationships needed to accelerate delivery of the infrastructure necessary to meet the UK’s climate and growth ambitions in the coming years.”

Bottlenecks and ripple effects

This is not just a data centre issue, but one that has significant, pan-industry implications.

As lead times increase, operators may face challenges in implementing the latest energy-efficient technologies designed to reduce power consumption and carbon footprints.

Innovations in cooling technologies, such as liquid cooling and advanced HVAC systems, offer potential solutions to enhance energy efficiency. These technologies can significantly reduce the energy required to cool data centres compared to traditional air-based cooling systems.

However, delays in acquiring these systems could hinder efforts to improve energy efficiency and sustainability within the industry.

So, what can we do to solve this problem? Well, firstly, Linesight emphasises the importance of robust supply chain management.

By building strong partnerships with suppliers, operators can help ensure a steady flow of essential equipment despite capacity constraints. As well as this, Linesight says that enhancing demand forecasts can help people to anticipate shortages, allowing them to procure necessary components well in advance.

Linesight's report also notes that copper prices have risen by around 2.2%, affecting both data centre and EV supply chains.

This is because copper is a key material used in electrical wiring and components within data centres. Rising costs could further strain budgets and complicate supply chain logistics, so workarounds or compromises will have to be made.

Linesight's findings: What are the headlines?

Linesight’s research, unsurprisingly, shows that data centre investment is booming, a trend predominantly driven by the new AI craze.

It says that by “maintaining strong, collaborative partnerships with suppliers”, the industry “will help secure a reliable supply chain, mitigate risks of disruption and enable consistent lead times”.

Other findings include:

• Most countries in Europe are expected to see growth in construction output in 2025: The exceptions are the UK and Denmark, which are expected to see a marginal decline, and Italy with a more pronounced contraction of over 8%.
• Growth in infrastructure, industrial, energy, and data centre sectors: This is helping to sustain the momentum in the construction industry.
• With the rising demand for AI, the size and scale of mission-critical sectors such as data centres and semiconductors are expected to grow significantly: This, Linesight says, will likely exacerbate the skilled labour shortage.
• Cooling solutions are rapidly emerging as a critical trend to monitor, especially for data centre operators: This has been highlighted as a major 2025 trend.
• Addressing the demand for AI computing and the densification of data centres will remain a significant challenge: This is thanks to the increased need for power, with cooling solutions adding additional pressure.

“Prices for energy-intensive commodities are largely stable but may rise in select countries, due to carbon taxes and levies targeting decarbonisation efforts,” says Richard Joyce, Linesight’s Managing Director for Europe.

“However, volatility in metal prices remains a concern. As AI-driven requirements grow and Europe deepens its commitments to climate neutrality, the focus on grid enhancements and alternative energy is anticipated to intensify.

"However, key challenges remain on the horizon include persistent labour shortages in mission-critical sectors, dwindling contractor availability due to high demand and increases in insolvency rates.

“Recent developments in the US presidential election, and the collapse of the German coalition government could mean there are further significant market shifts ahead. While it is too early to call, a ripple effect from both these situations would suggest a renewed caution is to be advised as we head into 2025.”

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