Artificial intelligence and the rapid construction of data centers have been front and center in the news over the past year. While much of the discussion around AI focuses on technology and its potential opportunities and challenges, All Material Handling (AMH) wanted to take a closer look at another side of the AI boom: the impact of data center construction on the lifting and rigging industry.
To better understand this impact, AMH consulted with several distributors involved in data center construction and related infrastructure projects.
Interestingly, just a year ago, few in the rigging industry anticipated the level of demand that data center construction would generate. That demand extends well beyond the construction of the data centers themselves. Massive facilities require significant amounts of energy, driving additional infrastructure projects such as transmission-line upgrades, increased power-generation capacity, and the reactivation or expansion of existing power plants.
New Construction, New Rigging Requirements
The rapid evolution of data center construction is also creating new lifting challenges. Modular construction methods are increasingly being used to manufacture and assemble data center components and equipment more efficiently.
These modules must be secured and transported from manufacturing facilities to construction sites and then positioned and lifted into place. Each step can require specialized rigging solutions, including tie-down equipment, protective tarps and coverings, lifting points, lifting accessories, hoists, and other specialized lifting accessories.
Because many of these construction methods and applications are relatively new, contractors and rigging professionals are encountering lifting requirements that may not have existed at this scale before. In some cases, new lifting accessories are being developed, tested, and adapted to meet the demands of this evolving construction environment.
For the rigging industry, this represents a significant opportunity. Wherever data centers are being built, a growing need exists for reliable lifting and material-handling equipment.
Meeting the Challenges of a Rapidly Growing Market
The growth of the data center industry has not come without challenges. One of the biggest has been understanding and anticipating the needs of customers working in an industry with very little historical data on rigging-product usage.
Demand can change quickly, and out-of-stock situations have become more common. For distributors, determining the right inventory levels can be difficult when projects require large quantities of specialized products with little advance notice.
In this environment, having reliable suppliers with sufficient inventory—and the ability to respond quickly when demand increases—has become increasingly important.
AMH has supported major distributors serving large data center projects with its portfolio of CARTEC lifting points, Grade 100 lifting accessories, and AMH MA/LA hoists. Maintaining product availability and responding quickly to changing demand allows distributors to keep their customers’ projects moving.
What Does the Future Hold?
The long-term impact of data center construction on the rigging industry remains difficult to predict. Some have questioned whether the opportunity will diminish once the current wave of facilities has been constructed, particularly as increasingly automated environments reduce the need for ongoing construction activity.
However, data centers are part of a rapidly evolving technology industry. The technology housed inside these facilities continues to advance, and equipment must be upgraded or replaced to keep pace.
As a result, the opportunity for the rigging industry may extend well beyond initial construction. Large modules and technology systems will need to be removed, moved, and replaced as facilities are upgraded. These activities will create continued demand for lifting and rigging equipment for maintenance, expansion, and modernization.
At the same time, the infrastructure required to power these facilities will continue to evolve, creating additional opportunities for the rigging industry.
While it is difficult to predict exactly how the data center market will develop, one thing is clear: the impact of this industry extends far beyond the technology itself. From initial construction and power infrastructure to ongoing maintenance and equipment upgrades, data centers are creating new lifting and rigging requirements—and new opportunities for the industry to serve them.
“At AMH, we’re here to support our distributors. Identifying industry trends and quickly adapting our stock is an important task,” said Peter Brettner, President of AMH. “Our goal is simple: provide a reliable, in-stock alternative that allows our partners to continue serving their customers without disruption.”
About All Material Handling, Inc. (AMH)
All Material Handling, Inc. is a trusted supplier of lifting and rigging products, known for high-quality equipment, responsive service, and dependable delivery across North America.