NTT DATA: AI Growth Needs Stronger Procurement

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NTT DATA released a new report on the complexities surrounding. Credit: Getty
NTT DATA reports that rapid AI data centre expansion faces severe power, supply chain and land constraints, requiring urgent operational innovations

A study from NTT DATA says that although data centre expansion is projected to increase by 23% to 30% globally by 2030, several limitations exist. Issues regarding land access, workforce availability, equipment supply chains, procurement and power resources could hinder the long-term viability of these upcoming sites.

Produced in partnership with ThoughtLab and NTT DATA Global Centers, the study explores the critical organisational dependencies required to facilitate the swift adoption of transformative AI innovations.

Doug Adams, CEO and President of NTT Global DATA Centers, explains: “AI demand is accelerating faster than many parts of the underlying infrastructure system can respond.

Doug Adams, CEO and President at NTT Global Data Centers

"The challenge now is not simply scaling capacity, but removing the operational and supply-side constraints that delay deployment and erode the economics of AI investment. This report is intended to help the market move from recognising the challenges to acting on practical solutions.

"AI infrastructure demand is no longer a future scenario. It is here now.

"The organisations that move fastest over the next several years will be those that understand where the real constraints are, act early to mitigate them and build with efficiency, resilience and long-term value creation in mind."

According to the report, the following areas are the most constricted right now:

  • Power availability and grid connections are becoming decisive constraints in major markets, particularly in the US and Europe. 
  • Processors, transformers, switchgear and backup generators are emerging as significant choke points, with long lead times and limited manufacturing capacity affecting how quickly new projects can be fitted out and energised. 
  • Rising community opposition and land constraints are delaying approvals in prime markets, while shortages in specialised construction labour are increasing execution risk and extending delivery timelines.
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Guidance for organisations

There are viable solutions to curb the preparedness for enterprises, operators, investors and policymakers in relation to AI infrastructure, especially regarding implementing stronger procurement agreements and providing supply-chain protection.

These include:

  • Co-planning power and grid infrastructure with utilities early to align new projects with generation, transmission, storage and interconnection realities before bottlenecks delay deployment. 
  • Driving efficiency-focused innovation through advanced cooling, workload optimisation, liquid and direct-to-chip cooling and AI-enabled operations that reduce pressure on energy and water resources. 
  • Setting stronger and more transparent performance benchmarks, including more consistent use of power usage effectiveness (PUE) and water usage effectiveness (WUE), to improve planning and investor confidence around efficient capacity expansion. 
  • Improving community engagement and siting strategy so projects can move faster with clearer public understanding of economic benefits, infrastructure impacts and mitigation measures.

Other procurement measures

NTT DATA has implemented other procurement strategies to continue evolving in the business sphere. In 2025, the company released an ecosystem powered by AI agents to aid businesses. 

Yutaka Sasaki, President and Chief Executive Officer, NTT DATA Group, says: “The rapid evolution of AI presents both immense opportunities and challenges for businesses.

Yutaka Sasaki, President and CEO of NTT DATA Group

“At NTT DATA, we have developed the comprehensive capabilities needed to guide our clients through these transformative times and empower them to shape their future with the power of AI.”

The agents are tailored to help industries including healthcare, automotive manufacturing, finance, supply chain and logistics and marketing.

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