More than three-quarters of data center industry experts believe local supply chains are not fully prepared to support the adoption of advanced cooling techniques for AI data centers, according to a Turner & Townsend report.

The “Data center construction cost index 2025-2026” report, which surveyed 280 “experts working across the data center industry,” revealed that 83 percent of respondents think local supply chains are not fully equipped to deliver on high-density, liquid-cooled facilities supporting AI workloads.

Some 48 percent of respondents also said power availability was the biggest obstacle to delivering projects on schedule, which was worsening due to increasing power-density requirements.

Turner & Townsend said action needed to be taken in reviewing procurement models and innovation would be required to “develop and deliver more energy efficient designs and mitigate the risks of power connection delays.”

“Data centers are increasingly at the forefront of many governments’ long-term policy ambitions, and their significance is better understood and recognised – providing greater opportunities for clients in the sector. Yet our report highlights key challenges that must be addressed to avoid putting a brake on investment and the benefits of AI transformation,” said Paul Barry, data centers sector lead, North America at Turner & Townsend. “Power availability remains a critical barrier, with long-lead times for grid connection the main constraint. There is also stronger competition than ever before for power due to both increased business and consumer demand, placing added pressure on grids.”

He added: “Developers and operators must adapt quickly to the evolving market landscape. AI data centers are more advanced, larger, and by extension, costlier. They come with greater power demands and modern cooling solutions. Clients need to navigate the power conundrum with greater openness to off-grid design solutions, while also securing reliable supply chains capable of providing the technology and talent needed for this new wave of data centers.”

The data center industry is expanding rapidly due to increased demand from AI workloads, with global demand for data center capacity on track to triple by 2030. Supply chain issues have grown in equal measure, as power infrastructure requirements, cooling demands, equipment procurement, and material costs have all had major impacts on the supply chain.

Political developments, such as recent tariffs and domestic manufacturing policies in the US, have resulted in difficulty and uncertainty across the supply chain. In Europe, concerns surround the vulnerability of the continent’s procurement lines of rare earth exports from China.

Developers are now adopting alternative delivery models, such as modular and prefabricated approaches, centralized procurement, and, in some cases, vertical integration and in-house manufacturing.