Flexibility in a rapidly changing world - how Data Centre leaders are adapting their operating models to centre on customer needs and meet market expectations

Introduction

A best-in-class data centre operator delivers both growth and profitability thanks to a robust delivery model, characterised by scalability, efficiency, sustainability, customer-centricity and resilience - from site selection to operations and customer success.

Achieving these outcomes is increasingly challenging, requiring data centre operating models to adapt to;

• The push for growth in MW footprints, with explosive AI workloads and hyperscale demand
• A highly competitive market for power and talent
• Increasing customer expectations, regulation and sustainability requirements

From our work supporting clients in this space, we see different perspectives across the Executive team;

• For Commercial leaders, this means more pressure than ever to provide a leading customer experience and an offering that moves in-step with market demands at a competitive price
• For People leaders, the war for data centre talent means an optimal employee experience is key to attract and retain the brightest minds in the sector
• For Operational leaders, the pressure is on to deliver increasing market demands more effectively and efficiently through more consistent practices across fragmented geographies
• For CFOs, it's becoming increasingly challenging to balance costs in line with rapid expansion whilst securing funding and managing investors.

The challenge

Adopting traditional siloed structures and top-down governance risks slowing decision-making, whilst inconsistent practices across fragmented geographies stifle agility and inhibit the customer and employee experience.

We are seeing the leading players in the Data Centre market increasing their flexibility in response to the rapid market evolution.

Adaptive operating models distribute decision-making amongst empowered teams, enabling them to move quicker and continuously improve. This equips organisations to keep pace with increasing customer demands, protect margin and attract and retain talent through an enhanced employee expereince.

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Organisations must focus on building more flexible, customer-centric organisations, with increased strategic alignment, streamlined governance and clear decision-making frameworks for more accountable and empowered workforces.

The opportunity

Our experience demonstrates tangible benefits that data centre leaders are achieving through adapting their operating models. These include:

• Increased growth: Establishing a customer-centric model with modern ways of working gave one company the confidence to increase their already ambitious net profit growth forecast by an additional 10% over the next 5 years
• More engaged, efficient and effective workforces. Another organisation freed up 10% of workforce capacity to focus on higher value activities in year one, through flatter more efficient structures, coupled with a 10% reduction in forward headcount growth requirements and 20% reduction in regretted employee attrition
• Increased customer centricity: immeditely following implementation, over 90% of employees agreed the new operating model would make them more customer centric, this ultimately resulted in a 15 point increase in NPS

How Baringa can help

The required scale and pace of global Data Centre development poses multiple challenges across the value chain.

We partner with our clients to build and sustain the digital backbone that drives growth and innovation in a connected world, navigating challenges from energy access and cost, to attractng, retaining and delighting customers, to driving operational performance, profitability and resilience, to future proofing your workforce and the planet. Reach out to our team to learn more.

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