FedEx’s Data Center Shipping and Logistics Services reflect the important role that shipping intelligence plays in large data center projects. They also underscore the importance of shipping attributes relevant to any large capital project.
As we see AI applied to more use cases across industries, it’s no surprise that we are also witnessing a dramatic and corresponding increase in demand for more data center capacity. That, of course, is not without controversy, nor can anyone say with any certainty – at least today – how our collective need for information infrastructure in general and data centers specifically will change with innovation. Large language models, as powerful and power-hungry as they are, will of course be improved as well.
But for now, we are seeing a massive increase in data center construction not just in places like Northern Virginia, the global hotspot for data centers, but nationwide. And this has not gone unnoticed by carriers, who appreciate the vital role shipping performance and expertise plays in building such facilities.
FedEx in particular has devoted significant attention to the construction of data centers, with CEO & Director Rajesh Subramaniam noting in the company’s fourth quarter earnings in June that he was “especially encouraged by our progress and pipelines in the key healthcare, automotive, aerospace and data center verticals.”
Additionally, Chief Customer Officer and Executive Vice President Brie A. Carere highlighted the opportunity FedEx sees in data center logistics. “The AI and data center space is an emerging and rapidly scaling growth engine for us, delivering double-digit revenue growth. Rather than a narrow vertical, this space represents a horizontal ecosystem. We are capturing demand across the entire value chain, from traditional hyperscalers to the industrial and power infrastructures that support these massive buildouts,” she said.
FedEx, of course, isn’t the only carrier with its sights set on the data center building boom. DHL has specialized data center logistics services, and there is a growing community of 3PLs that offer services that specialize in delivering and staging the equipment and systems involved. A closer look at FedEx’s data center services offers a compelling look at what some of those service offerings are.
So you want to build a data center?
FedEx’s data center shipping and logistics services are multi-faceted and cover everything from servers to storage systems, networking equipment (including cables, switches and routers), and support infrastructure – some of which includes ventilation and cooling systems and backup generators. Customers are also offered a number of benefits, among them:
- Global air freight and charter flights;
- Secured space and capacity;
- On the next flight, on the same day, or overnight options,
- Critical inventory logistics to support just-in-time delivery;
- The monitoring of environmental conditions, among them shock, tilt and temperature;
- White-glover treatment with strict controls to protect physical and intellectual property; and
- Real-time visibility and alerts.
The company devotes significant attention to this last point – and four additional shipping imperatives – in its corresponding article, “Data center logistics are now a competitive differentiator.” A quick read, it includes relevant insights for all shippers – not just those in the data center business.
Mission-critical shipping requires a mission-critical approach.
At the core of FedEx’s marketing of its data center-related services is the idea that the shipments involved are mission- and business-critical. And they are right. But I would argue – and I imagine FedEx would agree – that what constitutes a critical shipment hinges on whether and how it impacts your business.
That is why, at the end of the day, the very attributes FedEx points to in its article – speed as a revenue protection strategy, security in the supply chain, the modernization of supply chain models, visibility that turns insights into action – and the realization that lives depend on logistics – are ones that all shippers benefit from pondering and embracing.
Perhaps most importantly, all of these attributes stem from one singular capability – being able to act on the right data at the right time. You may not be in the data center business, but the ability to know what’s happening in any given moment – true shipping intelligence – and to take proactive action is no longer optional. It’s the cornerstone of a successful shipping operation in any industry.