The race to build AI data centres depends on more than chips, land and investment. These facilities also need extensive electrical infrastructure.
Now, cable production capacity is emerging as another potential constraint.
Nexans CFO Vincent Piquet told Reuters that global cable capacity is tight. Building a new production line for cross-linked polyethylene (XLPE) cable can take around three years.
That delay makes it difficult for manufacturers to respond quickly as data centre developers accelerate construction plans. Reuters reporting
Why data centres need so much cable
A data centre must move electricity from the grid to the equipment that runs its servers. Different cables handle different parts of that journey.
Low-voltage cables supply power to servers and storage systems inside the facility. Medium-voltage cables connect the site to substations and backup generators.
High-voltage cables carry electricity over longer distances. As a result, expanding a data centre can require significant amounts of cable at several stages. Nexans’ data centre guide
This makes cable supply distinct from electricity supply. A project may face delays because it cannot secure enough power from the grid.
It may also face delays because the cables needed to connect and distribute that power are unavailable. In some cases, both problems can affect the same project.
What makes cable production hard to scale
XLPE is an insulating material used in power cables. Manufacturers apply it around a conductor to help the cable carry electricity safely and reliably.
The specialized production line used to make this type of cable is known in the industry as a CV line.
According to Piquet, building one takes about three years. Therefore, suppliers cannot quickly add new capacity when orders surge.
Data centre developers may need equipment sooner than manufacturers can produce it.
That timing matters as AI companies build larger facilities and seek more computing capacity.
Piquet said developers are in a hurry, while cable manufacturing cannot expand at the same pace. He also said grid constraints can increase demand for Nexans’ products and allow the company to be more selective about how it allocates capacity.
Longer contracts show how buyers are responding
Some customers are trying to secure supply earlier. French electricity distribution operator Enedis has moved from annual procurement agreements to contracts lasting six or seven years, Piquet said.
Longer agreements can give buyers greater visibility over future supply. They also give manufacturers a clearer view of demand as they plan production.
However, such contracts reflect the need to reserve capacity well ahead of construction schedules.
Power availability presents a separate challenge. In September, Oracle issued a force majeure notice to a Blue Owl unit developing a large data centre in New Mexico.
Oracle cited possible difficulty securing enough electricity for the site. That example concerns access to power; it does not establish that cable shortages caused the delay. Reuters reporting
Regional constraints differ
Europe generally faces fewer grid-connection challenges than the United States, according to Piquet.
Some northern European countries also have stronger electricity networks. Still, lengthy regulatory processes can hold up projects.
Piquet expects AI-related demand to continue. He said Europe’s data centre expansion may be less pronounced than in the United States, partly because private investment capacity is smaller and public funding plays a larger role.
For developers, the broader lesson is that data centre schedules depend on several linked systems.
Access to electricity, regulatory approvals and cable availability all matter.
As AI infrastructure expands, manufacturers and project planners will need to account for these supply constraints well before construction reaches its final stages.
