This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. You can learn more about our use of cookies and similar technologies and your choices by reviewing our Privacy Policy. By clicking “I agree” you agree to our use of cookies and similar technologies.
Data Centres: Booming Growth, Tougher Challenges
The data centre industry is marching to its own beat, seemingly unfazed by multi-polar global economic and geopolitical concerns. Expansion continues in every nook and cranny where space and power are available, driven by the ever-growing needs of AI, cloud computing, and digital infrastructure. The titans of the industry keep getting bigger, while new names and familiar players alike flood the market, all looking to cash in on investments that appear poised to defy economic trends. So many drivers—but what are the real risks?
The challenges of this growth and opportunity were top of mind at the 2025 London Data Centre World, held at the ExCel Centre in mid-March. The halls of ExCel were buzzing with what seemed to be one of the highest levels of engagement the sector has seen in quite some time. Optimism filled the exhibit floor—but beneath the surface, the fundamental question remains:
What risks could disrupt this booming industry?
- Would diminishing and more expensive power requirements put a hedge on the data centre engine?
- Would local markets seek to further regulate data centre expansion in their markets?
- Would growing demand by consumers and businesses outpace the capacity of new data centre projects?
- Would a warming environment make obsolete new liquid cooling solutions before an optimum approach can be delivered?
- Or would a complex and ever-changing global economy turn the tide against the speculative nature of market investment?
- Or is it a combination of these variables that could impact the sector as a whole?
With 15 years in the data centre market, Guidepost Solutions has seen firsthand the risks that threaten this rapidly expanding sector. Perhaps the greatest challenge today is the widening gap in talent needed to sustain growth. While physical and logical security threats, site selection risks, compressed timelines, and supply chain delays all pose significant concerns, the industry’s ability to scale ultimately depends on having the right expertise in place. With an ear to the ground at every stage of the data centre lifecycle, Guidepost Solutions is uniquely positioned to help identify and mitigate these evolving risks.
Each step of the data centre process from land development to facility commissioning is fraught with potential hurdles that could derail the process. Whether you are a hyperscale provider building your own data centre facility or a service provider leasing space – if the numbers do not calculate out for the proper return on investment the risk becomes a gamble to manage. And while technology and engineering often provide solutions that can manage through the toughest of challenges, the one variable that becomes the most difficult to mitigate is the lack of viable resources capable of delivering your facility once all other variables have been accounted for. From specialized designers to seasoned construction resources, the projected spend of the data centre market is $405 billion in 2025 which is at risk without the resources in place to ensure that all plans are executed. This is a business risk to investors, a security risk to governments, and a social risk to consumers whose private and personal lives could be undermined by a lack of qualified resources.
To their credit, Data Centre World London gave this risk a top headline and an arena for discussion while identifying the key threats and vulnerabilities and offering solutions to address the issue of capacity.
- First, the specialized nature of data centre work requires a combination of technical expertise in areas such as electrical engineering, security, cooling systems, and network infrastructure all the while understanding emerging technologies. This multidisciplinary skill set is not commonly found in traditional educational programs, leading to a gap between the industry needs and market resources.
- Secondly, the speed at which the industry and technology are moving means that even industry veterans are being outpaced and with little time for training or continuing education – those engaged in this market are playing a losing hand.
Data Centre World’s panel session highlighted the need for collaboration between educational institutions and the data centre industry as a priority. Be it changing curriculums, hands on training, internships – the risks faced by the industry require heavy investment to ensure a sustainable environment that will attract new talent and grow the existing base of experienced resources. In short, the solutions will not be resolved in a unilateral manner but rather through global industry leaders investing in people as well as real estate.
As data centre expansion accelerates, the growing shortage of skilled resources is becoming one of the most pressing challenges for operators, investors, and developers. Understanding which aspects of the data centre process will be most impacted—whether in assessments, infrastructure and security design, project management, or systems commissioning—is critical to keeping projects on track. Partnering with experts like Guidepost Solutions—who can identify these risks early and provide the right solutions—can mean the difference between a seamless build and a project plagued by setbacks. Our compliance experts ensure that general contractors are not burdened by construction crews that do not meet the work regulations imposed by the local jurisdictions and our forensic accountants offer a specialization that allows us to manage and monitor any potential corruption out of the development process anywhere in the world. With the right risk mitigation strategy and supplemental expertise, your data centre project can move forward efficiently and securely.
Terry K. King
Vice President, STC Operations
Terry K. King is an expert in the design, consultation, and implementation of electronic security solutions. He has more than 25 years of experience in both security consulting services and systems integration. Mr. King specializes in large, new construction commercial projects placing an emphasis on effective communication between critical stakeholders and all associated trades and partners. Further, he has significant experience in the development of design standards for electronic solutions in both commercial and public sectors, ranging a wide degree of vertical markets. In addition to his design and engineering experience, Mr. King has a significant background in the assessment and analysis of existing facilities, including security systems, operational security, and standard operating procedures. His expertise extends to the program/project management of large-scale implementation projects, and the administration of standardized systems.
SBC hotlineOakland County AARMAGELLAN Monitorship