Why Scaling AI Infrastructure Requires a Sustainable Logistics Strategy

According to Deloitte, Asia Pacific is set to become the world’s next data center hub, with approximately $800 billion in data center investment expected across the region by 2030. The demand for data center capacity is driven in part by AI adoption and the computing resources needed to train and use Large Language Models (LLMs).

This presents an opportunity for data center system integrators and infrastructure providers who can scale to meet the increased needs of those building and expanding their data centers. Turning this opportunity into reality and effectively scaling AI infrastructure requires a reliable and sustainable strategy for data center logistics.

Key logistics challenges for data center system integrators and infrastructure providers include:

• Moving heavy and awkward hardware: AI hardware shipping involves moving massive servers, server racks, and cooling systems that are heavy and difficult to maneuver. For example, tall server racks must be packaged and handled carefully to mitigate the risk of tipping or tilting, which can cause significant damage and costly delays to data center launch schedules.

• Protecting delicate hardware when in transit: With severe shock events potentially rendering servers unusable, businesses need a logistics partner who can help them mitigate risk through proactive monitoring of vibrations and temperature-controlled shipping.

• Navigating customs and cross-border shipping: AI infrastructure projects often involve working with suppliers and customers in multiple countries to import and export components and hardware. While local couriers may offer cost advantages in some areas, the resources required to manage them often outweigh the savings. To keep projects on track, businesses need a single global logistics provider with the tools and expertise to coordinate cross-border shipments and ensure smooth customs clearance.

• Meeting tight deployment deadlines: To avoid the delay of new data center builds or expansions, data center system integrators and infrastructure providers need reliable time-definite delivery. Businesses should seek a partner with the resources, expertise, and extensive network to proactively mitigate risk and re-route shipments when faced with disruptions such as extreme weather or geopolitical events.

While businesses must be able to reliably ship heavy equipment to scale operations quickly, they must also do it responsibly to meet Environmental, Social, and Governance (ESG) requirements. ESG policies and regulations help to guide companies in adopting sustainable and ethical practices. Demonstrating transparency in Scope 3 emissions logistics and strengthening sustainability efforts is not only important for compliance but an opportunity to build business advantage.

With regulations such as Singapore’s ISSB-aligned climate reporting standards and Australia’s Sustainability Reporting Standards, some listed companies are being asked to report on the greenhouse gas emissions of their supply chain partners—otherwise known as Scope 3 emissions. This has increased the need for transparency regarding logistics and the emissions generated by transporting goods purchased from suppliers.

While not all companies may face immediate reporting mandates, it’s beneficial to start considering consider the sustainability of functions like logistics. By proactively tracking their environmental impact and exploring ways to reduce it, data center system integrators and infrastructure providers can start to position themselves as a trusted, forward-thinking partner in the supply chain.

The good news is that you don’t need massive resources to begin. Start by tracking emissions on your highest-value or most frequent shipping lanes first. Using this initial logistics data to establish a baseline makes sustainability feel achievable and prepares you well before formal reporting is required.

To help businesses gain visibility into their logistics emissions, FedEx offers tools such as FedEx® Sustainability Insights. Using near-real-time FedEx network data, the tool estimates CO2e emissions for both individual tracking numbers and entire FedEx shipping accounts. Customers can access historical emissions data and search by tracking numbers via their FedEx.com login.

To optimize delivery routes and reduce unnecessary mileage, we have also introduced our AI-powered Stops Sequencing tool. Based on inputs such as package volume and customer specifications, the tool intelligently plans delivery sequences to minimize mileage, potentially reducing carbon emissions while improving operational efficiency.

In summary, scaling AI infrastructure is a massive undertaking that requires a balance of speed and responsibility. Data centre system integrators and infrastructure providers must partner with a logistics provider that can offer reliable transport of high-value hardware alongside Scope 3 emissions tracking.

Following are tips to build a logistics strategy that helps you meet demand for AI infrastructure in the compute crunch.

• Work with a single global logistics provider: Rather than relying on a disjointed web of couriers, choose a single logistics partner like FedEx that’s experienced in shipping high-value, time-critical infrastructure and offers a global network that can help you reach your entire supplier and customer base.

• Protect high-value infrastructure in transit: Moving heavy, shock-sensitive AI infrastructure and servers requires careful handling. Choose a reliable logistics partner with solutions like FedEx Surround® that can help you mitigate risk.

• Track your environmental impact: ESG is not just a compliance checkbox. By proactively tracking your environmental impact, you can position your business as a trusted partner within the supply chain and build a competitive advantage.

How to ship AI servers safely?

To ship AI servers safely, partner with a reliable logistics provider that can handle heavy freight and offers solutions such as vibration monitoring and temperature-controlled shipping to mitigate the risk of damage to delicate internal components. 

How can I sustainably ship heavy, high-value hardware?

Choose environmentally friendly packaging and work with a logistics provider committed to reducing emissions and waste through practices like route optimization and the modernization of fleets and facilities. 

Why is Scope 3 emissions tracking important for data center system integrators and infrastructure providers?

Tracking Scope 3 emissions helps data center system integrators and infrastructure providers make informed decisions to manage their environmental impact. Proactively monitoring this data also helps integrators and infrastructure providers meet growing ESG reporting requirements from Tier 1 partners and listed companies.

How can businesses track emissions from shipping?

Businesses can track their shipping emissions using tools like FedEx® Sustainability Insights, which provides near-real-time network data to estimate CO2e emissions for individual tracking numbers or entire shipping accounts.

How does FedEx support ESG and sustainability goals?

FedEx provides digital tools like FedEx® Sustainability Insights to accurately track and report your shipping emissions. We also use our AI-powered Stops Sequencing tool to optimize delivery routes and ensure your heavy infrastructure is delivered more efficiently and sustainably.