Iran war disrupts datacenter construction supply chains, raises material costs

Iran war hits datacenter building supply chains, upping costs

BCS says builders face up to 20% material hikes and patchy deliveries

The Iran conflict is adding to supply-chain disruption fordatacenter construction projects, bumping up material costs and causingshortages 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-basedbuilding materials are becoming scarcer and more expensive, as about a fifth ofthe 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 isstarting to feel the effects of the blockade,...

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