# Global server demand is set to stay strong through 2027 as supply chain pressure widens — retained record

> Retained news record from news:digitimes.

Canonical: https://highsignal.app/data/records/6a65ea744d91c0a4

[← sources](https://highsignal.app/data)


source: [news](https://highsignal.app/data/news) (news:digitimes)  published 2026-07-03 04:36 ingested 2026-07-03 09:02

[original source ↗](https://www.digitimes.com/news/a20260703PD211/demand-2027-high-end-capacity-performance.html)

## retained text



```
Global server demand is expected to stay strong through 2027, with implications for cloud operators, hardware makers, and data center customers worldwide. Large-scale buildouts, rising AI deployments, and high-performance computing demand are keeping supply chains tight, lifting prices, extending lead times, and raising the risk of fresh bottlenecks.
According to industry sources, the current strain is centered on GPUs, HBM, advanced packaging, memory, storage, and some high-end board and power-related parts, as major cloud service providers continue to expand capital spending and secure capacity through long-term contracts and early volume commitments. The question now is whether those pressures will spread beyond core computing chips into other parts of the chain as AI infrastructure scales further.
Rising material costs squeeze margins
Of particular concern is the effect of higher raw material costs, including metals and plastics, on manufacturers' margins and production plans. Rising rack power and bandwidth needs are forcing data centers to use more power conversion, thermal management, and high-reliability connection products, which is increasing demand for copper and other metals used in power cables, terminals, high-speed harnesses, and backplane connectors. At the same time, logistics issues, geopolitical risks, and regional supply uncertainties could further delay deliveries.
Higher power levels raise technical bar
New-generation AI server platforms are also raising technical requirements inside racks. Higher power levels mean terminals and harnesses must handle greater current density while maintaining safety, reliability, low loss, and heat dissipation. Meanwhile, faster data transmission between servers, switches, and accelerator cards requires lower signal loss, denser routing, stronger mechanical performance, and better signal integrity.
As a result, in-rack connection solutions are shifting from isolated component purchases toward system-level design centered on power distribution and signal integrity. Connectors, cables, and backplane designs are becoming more important to server performance, stability, and delivery schedules.
Lead times diverge across suppliers
Demand for in-rack power distribution, backplane connections, high-speed harnesses, and high-current terminals is still rising, pushing up order books across the connector and cable industry. According to suppliers, lead times are diverging: general connectors and cable products often take several weeks to more than 20 weeks, while some power supply, electromechanical, and high-end customized products can take considerably longer.
For projects involving customized harnesses, high-current designs, or high-speed transmission, delivery times will depend on supplier capacity, material availability, and customer volume commitments. With copper and other metal costs staying elevated, makers of high-end connectors, terminals, and harnesses are under growing cost pressure, prompting some to reconsider inventory levels, capacity allocation, and long-term contracts.
Next bottlenecks may extend beyond chips
Market participants said future bottlenecks may not stop at GPUs, HBM, or advanced packaging. If demand remains strong and capacity expansion continues to lag, high-current power terminals, high-speed backplane connectors, and customized high-frequency harnesses could become the next sources of delivery delays and pricing uncertainty.
Article translated by Jingyue Hsiao and edited by Jerry Chen
```



document fetched 2026-07-03 09:02 · canonical https://digitimes.com/news/a20260703PD211/demand-2027-high-end-capacity-performance.html