By Sean Crain

Data center owners are under intense pressure to develop facilities that can meet performance and capacity needs now and in the future. As AI and cloud computing continue to advance at a rapid pace, “the future” often comes sooner than expected. This has resulted in an unprecedented state of building and expansion where time is a limited commodity. Under these constraints, developers can’t afford to be slowed by manufacturing delays, but the standard supply chain infrastructure just isn’t designed to keep pace with data center building demands.

The just-in-time (JIT) approach to supply chain management has been the manufacturing standard of excellence for decades. However, a reliance on maintaining minimal inventory levels can leave the process vulnerable to disruption. Volatile trade conditions, civil unrest, natural disasters and shifting fuel costs all pose threats that can result in production delays and unpredictable costs. For data center owners, these delays can be the breaking point between winning or losing tenant agreements as competing tech centers vie for the same customers.

As data center development continues to soar, some manufacturers are rethinking the supply chain format and are choosing to vertically integrate supply chain processes to more tightly align with data center development forecasts. By vertically integrating the supply chain, manufacturers work alongside data center teams to plan equipment needs as much as four to six years in advance. Critical equipment like air handing units and chillers are engineered and stored before the projected installation dates, allowing data center owners to react quickly and efficiently to changing building demands and opportunities.

DEVELOPING A VERTICAL INTEGRATION STRATEGY
Collaboration and communication are critical elements in a successful vertical integration of supply chains. For data center providers considering the process, it’s important to have a clear forecasting strategy and early engagement with equipment manufacturers and consulting engineers. Under typical conditions, the average chiller requires a two-year lead time from design to production. Working from a pre-forecasted production strategy enables manufacturers to align material sourcing and production capacities to meet the projected timeline. In some instances, it can even help to reduce production lead times altogether.

Managing inventory is another important aspect of vertical integration. As equipment is manufactured, where will it be stored? How will it be maintained while in storage to meet warranty equirements? These are questions data center teams can ask manufacturing partners. Some manufacturers offer vendor managed inventory as a service. After the equipment is manufactured, it is then stored and serviced until it can be installed. For owners with the capacity to store the assets on their own, a planned service agreement ensures it is properly maintained prior to installation. In both scenarios, released equipment must be closely tracked by data center teams. Typically, a first-in-firstout inventory approach can help to reduce storage fees and ensure that long-storage warranty requirements are adhered to.

DESIGNING HVAC SYSTEMS FOR REPEATABILITY
Vertical integration often means cooling systems are designed even before building sites have been selected. To be successful, it is essential that HVAC system design is standardized for repeatability while also maintaining flexibility to adjust to local conditions as sites are secured. As before, forecasting plays an important role. Understanding the target markets and geographical regions can help to inform system requirements. For example, a free-cooling style chiller may be required in certain jurisdictions, while a magnetic bearing compressor style chiller may be a more efficient option for certain climates.

As locations are confirmed, manufacturers must continue to work alongside data center owners to adjust HVAC systems to meet target efficiencies, availability of water and regional regulations. Systems must be designed to meet not only today’s cooling needs but to anticipate future design requirements as rack densities continue to increase.

Because of this rapidly changing landscape, equipment that can be deployed in phases is often more advantageous than large Central Utility Plant (CUP) formats that can be difficult to scale and modify. Purpose-built modular systems enable data center owners to systematically build-out a full facility in proportion to their customers’ demands. For example, modular generators can be directly paired with air cooled chillers to offer a high-performance yet flexible solution that can be repeated throughout multiple facilities.

GETTING TO MARKET FASTER WITH VERTICAL INTEGRATION
In today’s data center market, many owners can’t afford delays due to long equipment lead times and production disruptions. Rethinking the supply chain to allow for vertical integration can allow owners to launch facilities faster and leverage their flexibility to capture new growth opportunities.

HVAC systems that are purpose-built around a format of standardization present the strongest opportunity for successful vertical integration. However, equipment designs must remain flexible to meet local conditions and requirements as they evolve.

Vertically integrating HVAC system supply chains requires partnerships with vendors who are driving innovation forward – not reacting to it. It requires a mindset to think beyond singular projects and invest in data center growth. It requires strategic planning to forecast development years in advance and trust to share these intentions with vendors who can seamlessly work alongside data center teams.

Sean Crain is consulting engineer account executive at Johnson Controls. He can be reached at [email protected].

Read Other Articles