Prysmian: Managing Material Shortages in APAC Data Centres

The Asia-Pacific data centre sector is undergoing significant infrastructure transformation as AI workloads place unprecedented demands on power delivery, connectivity and thermal management systems.

This shift is forcing operators and developers to rethink fundamental design principles, particularly around cabling infrastructure that forms the backbone of facility performance.

The challenge extends beyond simply adding capacity. AI-driven facilities require substantially higher power density than traditional data centres, while simultaneously facing material supply constraints that could affect deployment timelines and operating economics.

AI workloads reshape power requirements

The infrastructure demands created by AI data centres represent a structural departure from conventional facility design. These operations require significantly elevated power density to support intensive compute workloads, alongside advanced digital connectivity and dependable thermal performance.

Supply chain dynamics are compounding these challenges. Scarcity of key raw materials, particularly copper, is affecting both costs and availability. Component prices for solid-state drives and graphics processing units have risen by up to 30%, largely attributable to AI-related demand.

This combination of rising requirements and constrained supply is sharpening industry focus on infrastructure solutions that maximise efficiency while reducing material consumption.

According to cable solutions provider Prysmian, which has been operating in the Asia-Pacific region for 50 years, cabling systems are central to this equation, influencing power delivery, space utilisation and long-term operating costs.

"We are working in Europe, in LatAm and APAC to become more relevant, to become more engaged with the go-to-market, with a proper supply chain to win more share in the data centre space," Massimo Battaini, Chief Executive Officer of Prysmian, told investors in an earnings call on 6 March 2025.

The company's manufacturing facility in Rayong, Thailand, which specialises in low voltage cable production, exemplifies how regional manufacturing capabilities are being aligned with growing data centre demand across Southeast Asia.

Advanced cable design addresses density challenges

Engineering innovations in cabling technology are emerging as practical responses to the constraints facing high-density facilities. New power cable designs are being developed that could deliver equivalent power to conventional cables while using less copper and featuring smaller diameters.

These innovations rely on advanced optimisation of insulation and sheathing materials, enabling safe operation at temperatures up to 110 degrees Celsius compared with the industry norm of 90 degrees Celsius. Such designs have already been deployed in major data centres globally and are being tailored for high-density environments across Asia-Pacific.

Reduced copper usage could lower the carbon footprint associated with production and help mitigate material cost pressures. Smaller and lighter cables may simplify transport and installation processes, while reduced bending radius could support tighter layouts and more efficient use of space within data centre facilities.

Frederick Persson, Executive Vice President of Digital Solutions at Prysmian, adds: "Prysmian has long been a global champion in setting the standard in the field of fibre optics and our cutting-edge solutions are always evolving to meet the demands of our customers."

Regional deployment and scalability considerations

Space efficiency and deployment speed are becoming increasingly critical as data centres scale to accommodate AI workloads. Cable innovations designed to support these priorities could prove particularly valuable in urban and high-density locations where floor space commands premium pricing.

Easier installation processes and reduced space requirements may help shorten build timelines and support phased expansion strategies. This could be especially relevant in Asia-Pacific markets where demand is rising rapidly and operators are seeking to bring capacity online efficiently.

Regional manufacturing capability plays a role in supporting faster deployment. Local production facilities can enable shorter delivery timelines and closer alignment with customer requirements, while also supporting broader electrification needs across Southeast Asian markets.

Sustainability considerations are increasingly influencing infrastructure planning decisions. Prysmian has set a target for 55% of revenue to come from sustainable products and solutions by 2028 and has committed to achieving net zero across its operations and value chain by 2035.

For data centre operators facing their own carbon reduction targets, supplier alignment on sustainability is becoming a practical consideration in procurement decisions. Efficient cabling that reduces material use and supports lower transmission losses could contribute to both operational and embodied carbon goals.

As AI continues to reshape power and connectivity demand across Asia-Pacific, infrastructure solutions that balance performance, material efficiency and scalable design are likely to play an important role in regional data centre development.