Think about this for a moment: According to the International Energy Agency, a ChatGPT query consumes nearly TEN TIMES the electricity of a standard Google search. It’s not just AI’s popularity that’s driving the huge increase in demand for data centers — and, in turn, power-generation capacity. It’s the technology itself. What’s more, in just four years, the AI market is projected be more than five times bigger than it is now — pointing to an exponential growth rate in the tech-driven demand for power.
That’s good news. Here’s the bad news.
There are now dozens (if not hundreds) of players in the AI space, and the majority of increased demand for new data centers is being driven by the companies collectively known as FAANG: Facebook (Meta), Amazon, Apple, Netflix and Google (Alphabet). And if there’s a single common corporate ethos that virtually all technology companies espouse, it’s “Move fast and break things.” In other words, these are power customers who expect everything yesterday — if not sooner — with little (if any) patience for utilities and contractors scrambling to procure the equipment and components used in new data center substations.
You want it when?
The tech industry’s ever-increasing demand for more computing-power support has run head-first into the brick wall otherwise known, in substation procurement, as Lead Times. We mentioned AI’s projected growth rate in four years (above), because that’s literally the current lead time for some of the equipment most critical to completing the substations feeding new AI data centers — equipment like cable and wire racks.
If there’s one word we’ve learned we have to use when working with Data Center contractors, it’s “No.” Much as we hate it, a lot of the equipment they want just isn’t available in the lead times they expect — no matter how much extra they’re willing to pay.
The good news. Part 2.
That doesn’t mean there aren’t good manufacturers offering comparable-quality options to the equipment you’re used to buying — IF you know where to find it. We do. We’ve done substations for several data centers in our home state (Alabama) alone — where it’s a big growth industry, because power is cheap. More importantly, our absolute insistence on treating vendors right regularly gives us an advantage in requesting expedited delivery.
Meeting needs faster: Examples.
One way we’ve managed to fill orders significantly faster is by identifying manufacturers now working with non-traditional partners to supplement their own manufacturing facilities’ output. Another is by supplying remanufactured equipment. That said, not all “equipment rewinder” shops are created equal. And yes, we know which rewinders you can trust — and which ones you can’t.
Where else will you get the data center substation equipment you need?
For answers, contact Jason Harris any time. 205-807-0414 | jharris@peaksubstation.com