NTT Data Backs UPS Supply Chain Upgrade with Data Centres

NTT Data begins a long-term partnership with global logistics company UPS, supplying a custom blend of data centre colocation and cloud migration services to support the modernisation of UPS’s supply chain operations.

With a 10-year agreement in place, NTT Data will deliver a full stack of IT infrastructure services aimed at accelerating digital transformation and introducing new capabilities through AI and cloud innovation.

At the centre of the collaboration is a strategic approach to data centres, with NTT Data acquiring and managing one of UPS’s core facilities.

The move signals a major shift in how UPS approaches technology – outsourcing complex IT demands to a dedicated provider, while freeing its in-house teams to focus on developing customer-driven logistics solutions.

Abhijit Dubey, President & CEO at NTT DATA, explains: “We are honoured to be selected by UPS as a strategic partner on their transformation journey as they operationalise their 'data centre of the future' vision, deliver the next generation IT infrastructure and accelerate digital product development."

“As the third-largest data centre provider in the world, and the only one to offer full-stack transformation services, NTT DATA is well-positioned to help UPS reduce operational costs and risks, drive innovation and revenue growth and maintain market leadership. 

“This collaboration is a testament to our commitment to helping clients swiftly keep pace with the markets and prepare for the future.”

Data centre colocation to streamline logistics operations

NTT Data will take on the operations of one of UPS’s most critical data centres as part of the agreement.

Colocation refers to the practice of housing privately owned servers and networking equipment in a third-party data centre, rather than managing them in-house.

In this case, the colocation deal enables UPS to offload the challenge of managing physical infrastructure while still retaining direct access to its systems.

UPS plans to run a hybrid model that includes both public cloud and on-premises solutions – an approach that NTT Data is well positioned to support through its global data centre footprint and its integration expertise.

The ultimate aim is to modernise IT operations in a way that improves agility, scalability and cost efficiency across UPS’s supply chain network.

As global logistics becomes more reliant on digital infrastructure, this colocation strategy ensures that UPS maintains high availability, low latency and robust data security, all of which are essential to support time-sensitive supply chain activities.

This includes real-time tracking, inventory visibility and predictive analytics – all of which rely on reliable, high-performance data systems.

Ken Finnerty, Senior Vice President of Global Information Technology at UPS, sees this as a key move: “NTT DATA will bring world-class data centre and infrastructure services to UPS. This arrangement allows the UPS technology teams, under our ‘Efficiency Reimagined’ initiatives, to focus their expertise on the development of digital solutions to solve customers' supply chain needs.”

Powering supply chain innovation through infrastructure

UPS’s transformation strategy involves reallocating capital saved through colocation into forward-looking innovation.

With logistics evolving quickly – facing pressures such as growing customer expectations, supply chain disruptions and rising costs – the ability to adapt and innovate is crucial.

By modernising its data centres and embracing cloud platforms, UPS is positioning itself to be more responsive and data-driven.

NTT Data’s offering goes beyond basic colocation.

The company is providing end-to-end services, meaning that it not only operates the physical infrastructure but also helps design, implement and manage the digital solutions that run on it.

This includes support for AI-based applications, advanced analytics and automation tools – technologies that are increasingly central to modern logistics.

For example, real-time data sharing between warehousing systems, fleet management platforms and inventory software can create a more unified supply chain.

AI can then analyse this data to detect inefficiencies, forecast demand and plan routes more effectively. All of this requires seamless integration between IT infrastructure and software environments – an area where NTT Data has built strong capabilities.

The data centre supply chain itself is also changing, with increased focus on modular builds and standardised components to speed up deployment.

According to analysis by KPMG, standardisation and centralised procurement are helping data centre operators reduce timelines and improve logistical efficiency.

This has positive knock-on effects for clients like UPS, which benefit from faster implementation of new infrastructure.

The partnership brings together UPS’s logistics scale with NTT Data’s infrastructure and digital expertise – marking a step forward in building supply chain systems that are resilient, efficient and ready to meet growing demand.

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