Iran · The Register
Iran war hits datacenter building supply chains, upping costs
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BCS says builders face up to 20% material hikes and patchy deliveries.
Key facts
- For example, delivery times can vary between 5 and 38 months for
- chillers, transformers, generators and other critical plant equipment, even under
- normal conditions
- BCS says builders face up to 20% material hikes and patchy deliveries
- The firm’s regional director Oskar Lampe says that oil-based
- building materials are becoming scarcer and more expensive, as about a fifth of
- the global supply flows through the Strait of Hormuz
- Last month, 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
Summary
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. So says server hall project specialist BCS Consultancy, which 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. The firm’s regional director Oskar Lampe says that 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 energy-intensive, the construction industry is starting to feel the effects of the blockade, he claims.