AI’s growing pains reveal how sustainable IT can solve hardware shortage

As AI adoption accelerates, the global IT hardware market finds itself in uncharted territory. The demand for high-performance computing equipment – especially GPUs, CPUs and memory components – continues to outpace supply at a speed not seen since the pandemic-era supply chain collapse.

For data centres, MSPs and IT decision-makers, the question is no longer if hardware scarcity will impact operations, but how to stay agile when it does.

The AI acceleration and its ripple effect

AI has shifted from an emerging capability to a fundamental driver of innovation across every sector. From predictive analytics in manufacturing to content generation in media, the appetite for processing power is relentless. NVIDIA reported a 154% year-on-year increase in data centre revenue in 2024, largely driven by demand for AI workloads. But that same growth has squeezed global supply chains, creating long lead times and volatile pricing across the secondary market.

At the same time, energy efficiency and sustainability targets are reshaping how organisations think about IT infrastructure. The convergence of these pressures, including performance, availability and environmental responsibility, is forcing decision-makers to rethink traditional procurement models.

Lessons from past supply chain crises

The pandemic exposed just how fragile global supply chains could be. Businesses dependent on just-in-time inventory found themselves paralysed as lead times for critical components ballooned. Those who fared best were the ones who had built flexibility into their procurement strategies, diversifying suppliers, leveraging alternative markets and extending the life of existing assets.

Today’s AI-driven shortages echo those same challenges. Relying solely on new equipment pipelines can leave organisations vulnerable. By contrast, those who plan for variability, through smarter forecasting, lifecycle management and sustainable sourcing, are better positioned to maintain operational resilience.

The strategic role of refurbished IT

Refurbished hardware has evolved far beyond the perception of being a “stopgap” measure. Quality-assured refurbished servers, storage arrays and networking components now offer comparable performance to new equipment, often at a fraction of the cost and delivery time.

Increasingly, businesses are viewing refurbished IT not as a compromise but as a strategic advantage. It allows them to scale quickly, bridge supply chain gaps and deliver on sustainability goals without sacrificing reliability. The global market for refurbished IT equipment is set to grow by more than 12% annually by 2027, driven by data centre demand and corporate environmental targets. In an environment where GPU scarcity can delay AI deployments by months, refurbished alternatives provide a critical lifeline for continuity and greater innovation.

Agility through smarter buying

Navigating ongoing hardware constraints demands a more nuanced approach to procurement. Agility now depends on a willingness to balance performance needs with availability and total cost of ownership. 

One part of that equation is embracing multi-source procurement strategies. By diversifying between authorised resellers and trusted refurbishment partners, organisations reduce dependency on a single supply route and gain flexibility when market pressures shift. Another is recognising that existing infrastructure often has more to give. With proper maintenance, upgrades and support, many systems can continue to perform at a high level for years beyond their projected lifecycle, delivering both economic and environmental returns.

And sustainability has become a key factor in procurement decisions. Circular economy principles are no longer a niche concern but a competitive differentiator. Choosing refurbished hardware supports carbon reduction commitments while also strengthening supply resilience. Crucially, this approach must be underpinned by strong partnerships. Working with experienced refurbishment specialists ensures quality assurance, compatibility, and post-sale support that matches or exceeds expectations set by new equipment suppliers.

The cost of inaction and a smarter path forward

Delaying procurement decisions or waiting for supply constraints to ease can prove costly. Beyond the financial impact, it can slow innovation, restrict scalability and undermine competitiveness. The pace of AI adoption means that organisations unable to secure or optimise their infrastructure risk being left behind.

The IT landscape is changing, and so too must the approach to building and maintaining infrastructure. As AI continues to reshape demand patterns, organisations that think smarter about procurement will be the ones that thrive.

By combining flexible sourcing, sustainable practices and strategic refurbishment, businesses can stay ahead of both technological and market shifts. The future belongs to those who view supply challenges not as obstacles, but as opportunities to innovate.