Welcome home! How AI data centers supply chain uncertainties might drive re-shoring
Hyperscaler AI vendors have ambitious plans to spend hundreds of billions of dollars, and, on some counts, trillions, on new AI data centers over the next five years.
Constraints on energy, memory, and AI chips tend to grab the headlines. Yet these plans also come at a time of growing procurement uncertainties driven by rapidly fluctuating tariff proclamations (and sometimes resolutions), trade restrictions, security-driven export and import restrictions, and unexpected shortages of key ingredients the industry has taken for granted.
Specialized resins used in data center equipment such as connectors are one example. Kent Savage, founder and executive Chairman of Velocity Group, a specialty contract manufacturer, says these are now seeing bottlenecks traceable to conflict in the Middle East.
A recent US Executive Order concerning the sourcing of critical electrical equipment, signed on 26 August, is another. And whatever happens to be going on with Canada this week, or this...
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