Data Centre LIVE: Procurement Faces Extreme Market Pressure

Article Technology & AI Data Centre LIVE: Procurement Faces Extreme Market Pressure By Georgia Collins June 03, 2026 undefined mins Share this article Prioritise Us on Google Share this article Prioritise Us on Google The AI Data Centre Debate closed out the first day of Data Centre LIVE: The London Summit Industry leaders warn of two-to-three-year lead times for critical equipment as geopolitical tensions and semiconductor shortages reshape vendor management Procurement professionals in the data centre industry are confronting a landscape where traditional approaches to supplier relationships no longer function effectively. Lead times for industrial equipment have extended to three years in some cases, fundamentally altering project planning timelines. These constraints emerged as a central theme at Data Centre LIVE: The London Summit in May. A panel discussion titled 'The AI Data Centre Debate' featured Lonnie Salmon, Senior Director at Jabil, Jean-François Berche, CTO at GreenScale, Alex Bennett, CEO of NTT Global Data Centers and Jamie Allen, Head of Site Selection at Iron Mountain. Alex describes a sector where established procurement cycles have become obsolete. "The rules have been rewritten and continue to be rewritten every three months," he says. The panel examined how supply chain pressures and geopolitical risks are forcing procurement teams to rethink their fundamental strategies. Lead times reach three years According to Lonnie, the data centre sector's historical focus on price and efficiency has given way to a more complex procurement environment. The orchestration of suppliers across the entire supply chain has become essential rather than optional. "You only have to look at some of the key shortages," he says. "Energy is number one. Number two, when you look at the semiconductor industry you know, 50% of our industry now is being structured around memory." He adds that lead times for industrial equipment at site level now extend to two-to-three-year timeframes. This presents particular challenges for procurement teams attempting to match infrastructure delivery with client commitments. Geopolitical factors are compounding these delays. According to Lonnie, 40% of the world's helium originates from Qatar. With the Strait of Hormuz closed, access to this critical substance has become uncertain. Helium is required for high-density semiconductor production. "If you don't have the helium, then how do you produce the high-density memory, the high-speed processing?" Lonnie asks. Alex Bennett, Global Strategy Realisation & Transformation Director at NTT Global Data Centers Vendor management under pressure Alex identifies power and supply chain constraints as the most pressing issues for data centre operators. He suggests that internal execution capabilities matter as much as external supplier relationships. The procurement challenge extends beyond securing individual components. Vendor management now requires coordination across multiple categories simultaneously. Lonnie's comments suggest that procurement teams are moving from transactional purchasing to strategic orchestration. This could mean longer supplier partnerships and earlier involvement in project planning. The semiconductor supply chain presents particular complexity. According to Lonnie, memory now represents 50% of industry requirements. This concentration creates vulnerability if sourcing from specific regions becomes compromised. Procurement strategies may need to diversify supplier bases across geographies to mitigate risk. Geopolitical risks reshape sourcing The closure of the Strait of Hormuz illustrates how geopolitical events can disrupt procurement planning. Helium sourcing from Qatar represents a single-point-of-failure for semiconductor production. Procurement teams are facing decisions about whether to maintain lean supply chains or build redundancy through alternative suppliers. Each approach carries different cost implications. Jean-François points to regulatory  differences between regions that affect procurement timelines. In the US, securing power generation can be more straightforward than in the UK or Europe. "You go to Texas, you do a hole in the ground, you get gas, you power generation. Done," he says. This contrasts with UK procurement processes where permitting and planning extend project durations. These regional variations could influence site selection decisions. Procurement teams may prioritise locations where supplier networks and regulatory frameworks allow faster delivery. Lonnie Salmon, Senior Director at Jabil Water procurement myths addressed Water sourcing for data centres drew attention during the panel discussion. Jean-François states that the industry resolved water procurement challenges years ago through closed-loop cooling systems. "Data centres fixed water utilisation years ago," he says. He compares consumption levels to other industries, noting that 14 golf courses use more water than one data centre. Jamie describes water as a design problem the large-scale campus sector has already engineered around. Procurement solutions include on-campus storage, private water supplies and grey-water harvesting. "Anyone that is in the large-scale campus business knows that it isn't a design problem any more," he says. When challenged on US pushback against data centre water usage, Jean-François acknowledges regional complexity. "There is no data centre that is using water at the expense of the community," he says. This suggests water procurement may require stakeholder engagement rather than alternative sourcing strategies. Jean-François Berche (right), CTO at GreenScale Sustainability and supplier selection Lonnie suggests that sustainability  requirements may vary by geography depending on regulatory environments and economic priorities. "There's too much money in play," he says when asked about reconciling AI growth with net zero commitments. He notes that some governments regulate data centre emissions whilst others prioritise investment attraction. This creates inconsistent procurement specifications across markets. Jamie distils the practical procurement reality to one word: compromise. This could mean sourcing carbon capture technology for gas generation or accepting dual power costs whilst waiting for grid connections. These compromises affect vendor selection criteria. Procurement teams may need to balance sustainability  specifications against availability and cost constraints. Jamie Allen, Head of Site Selection for EMEA at Iron Mountain Strategic procurement for power The session concluded with discussion of power procurement challenges. Lonnie argues that the UK possesses sufficient generation capacity but faces distribution and storage constraints. "The UK can generate more electricity than it ever needs," he says. "The problem is not generating the power. The problem is getting it from point A to point B." This suggests procurement strategies should focus on grid connections rather than generation contracts. Jamie agrees, describing connection infrastructure as the primary obstacle. "We definitely have enough generation," he says. "I don't think anyone would say there's an issue with the amounts of electrons that are in the UK. It's just so strenuous to build that route down to where we actually need that power." Permitting and planning regulations were identified as procurement bottlenecks. Jean-François suggests these issues are more pronounced in the UK and Europe than in the US. Alex notes that NTT has set ambitious targets of net zero within its data centres by 2030, across offices by 2035 and through its supply chain by 2040. This timeline could influence procurement specifications for equipment and energy sources. Company portals BizClik GreenScale Iron Mountain Jabil NTT Data NTT Global Data Centers Executives Alex Bennett Global Strategy Realisation & Transformation Director Jamie Allen EMEA Vice President, DC Site Acquisition & Development Jean-François Berche Chief Technology Officer Lonnie Salmon Senior Director Procurement & Supply Chain Services Tags Data Centres Data Centers Debate Data Centre LIVE The London Summit Thought Leadership Iron Mountain Data Centers GreenScale NTT DATA Jabil