How Are Leading Data Centre Hubs Facing Supply Chain Risks?

More than half of the world’s 100 leading data centre hubs are exposed to escalating climate threats, putting vital supply chains and digital infrastructure at risk. 

According to new analysis from Verisk Maplecroft, a unit of Verisk Analytics, global temperature rises are testing the resilience of these hubs just as demand for cloud computing and AI surges.

Data centres have become the invisible foundation of everyday business, enabling the fast and constant exchange of information. Yet as temperatures climb, these high-demand facilities are operating under extreme stress, forced to divert more resources toward cooling and energy consumption.

In its new Cooling Degree Days Index, Verisk Maplecroft outlines how “56% of the top 100 data centre hubs score as ‘high’ or ‘very high’ risk for cooling degree days” – a measure of how often cooling is required to keep systems stable. 

That figure is expected to rise to 68% by 2040 and reach 80% by 2080 in a high-emissions scenario.

Cooling costs and climate pressure

The core issue is cooling. As temperatures rise, so does the need for constant climate control within data centres. 

Already, the data centre industry is seeing a spike in water and electricity usage. But the report projects an 83% increase in cooling degree days on average from 2030 to 2080, putting intense pressure on both operating costs and local infrastructure.

Each mid-size data centre currently uses around 300,000 gallons of water per day. That figure is set to increase, further straining natural resources. And as cooling systems demand increases, the impact ripples outward—straining electricity grids, water supplies and, eventually, surrounding communities, which might face health risks.

Capucine May, Senior Analyst at Verisk Maplecroft, says: “Data centre operators are innovating solutions to increase resilience and offset sustainability concerns, but rising temperatures increase these challenges. 

“The onus is on operators, customers and investors alike to assess rising climate threats, alongside social and political risk factors – not only for their own resilience, but because of a growing regulatory focus on third-party risk management.”

For instance, in 2022, heatwaves in the UK and US forced several data centres offline to prevent permanent damage from overheating. In each case, the goal was long-term preservation of equipment, but the short-term impacts were disrupted operations and lost revenue.

Data centre risk threatens global supply chains

There are deepening social and political risks if data centre operations begin to compete with local communities for water and electricity. 

Supply disruptions will be harder to contain if residents face water shortages or if entire districts experience blackouts tied to data centre consumption.

Laura Schwartz, Senior Asia Analyst at Verisk Maplecroft, says: “Data centres now form the digital backbone of business. The third-party operators of these facilities represent a critical link in global supply chains, as their services underpin the operations of all multinational organisations. 

“In an always-on, globally integrated economy, understanding the entire range of risks that can impact their resilience is a board-level imperative that needs mapping out today and into the future.”

Without strategic planning, many hubs may become unviable in the decades ahead, warns Verisk Maplecroft.

Higher energy costs and water use make these locations less attractive. In turn, workers may be deterred from supporting such operations — either due to health concerns or the political fallout of strained resources. 

Both factors introduce risk into supply chains that depend on reliable, uninterrupted digital infrastructure.

A new set of priorities for global operators

Verisk Maplecroft’s analysis signals a need for long-term thinking. It is not enough for operators to build bigger facilities or rely on current emergency measures like backup generators. 

According to its report, the industry will need adaptive strategies that consider not only operational continuity but also community impact and environmental sustainability.

If data centre hubs cannot secure water, power and public trust, then the networks they support — from ecommerce to logistics — will face costly breakdowns. 

As the climate changes, so must the assumptions behind global digital infrastructure and data centre planning.