Rapid Data Center Construction Outpaces Transformer Supply: Global Shortages and Zisheng Electric’s Response
Over the Past Two Years, Malaysia’s Johor State Has Seen a Surge of Data Center Projects
Over the past two years, a large number of data center projects have moved into Johor, Malaysia.
Located close to Singapore, with excellent network connectivity and more available land than Singapore, Johor has quickly become one of the hottest data center investment destinations in Southeast Asia.
However, project development has not been as smooth as expected.
The challenge is not land availability, network infrastructure, or investment capital.
It lies in one often-overlooked link:
Transformer delivery.
This is not just a problem in Johor.
In regions such as Virginia in the United States, Frankfurt in Germany, and Dublin in Ireland, the same situation is happening.
Transformer delivery lead times have extended from around one year in the past to two or even three years or longer.
Some data center projects have been forced to delay commissioning — not because computing capacity is insufficient, but because the power infrastructure cannot be delivered in time.
I. Why Are Transformers Suddenly in Short Supply?
The answer is not complicated.
Three major demand waves are happening simultaneously:
First, Rapid Expansion of AI Data Centers
The power demand of a hyperscale data center can reach gigawatt levels, equivalent to the peak summer electricity consumption of a medium-sized city.
Every such data center requires dozens of transformers with different types and specifications.
Second, Global Power Grid Upgrades
Aging power grids are being upgraded to accommodate renewable energy integration.
This requires large-scale replacement and installation of new transformers worldwide.
Third, Accelerating Industrial Electrification
Factories, transportation systems, and heating infrastructure are increasingly shifting toward electricity-based solutions, further increasing demand for power equipment.
These three demand waves have collided at the same time, and transformer manufacturers simply do not have enough production capacity to absorb the market demand.
Building new transformer manufacturing capacity typically takes 3 to 5 years, while training experienced specialists also requires significant time.
In addition, the supply of key materials such as grain-oriented electrical steel and copper remains constrained.
As a result, the supply-side bottleneck is unlikely to disappear in the short term.
II. What Makes Data Center Transformers Different?
Some people may ask:
“A transformer used in a data center is basically the same as an industrial transformer, right?”
The difference is significant.
Traditional industrial transformers usually operate at a load rate of around 50% to 70% and are not continuously running at full capacity.
Data center loads are completely different:
- 24/7 continuous operation
- Load rates close to 100%
- Frequent load fluctuations
- Significant harmonic distortion caused by large numbers of servers, UPS systems, and other nonlinear loads
What does this mean for transformers?
It means they must handle:
- Higher operating temperatures
- More demanding thermal stability requirements
- More complex power quality conditions
If a transformer cannot withstand these conditions, the impact is not limited to a single production line.
It can directly affect the operational reliability and safety of an entire IT data hall.
III.ZiSheng Electrical’s Approach: Designing Transformers Specifically for Data Center Applications
ZiSheng Electrical is a transformer manufacturer with long-term focus on data center applications.
We understand that data center developers and operators are most concerned about two things:
- Can the equipment be delivered on schedule?
- Can the equipment operate reliably for the long term?
Based on these two priorities, we have developed several targeted solutions.
First, Product Design Optimization Specifically for Data Centers
Our transformers are designed with data center operating conditions in mind.
The transformer core uses high-grade, thin-gauge grain-oriented electrical steel, which reduces losses and provides greater stability during long-term high-load operation.
The insulation system adopts Class H (180°C) heat-resistant materials, providing a larger temperature margin compared with conventional Class F insulation systems, thereby extending equipment service life.
The winding structure and short-circuit impedance have also been optimized with a clear objective:
To enable transformers to better withstand the complex harmonic environment and voltage fluctuations commonly found in data centers.
At the same time, the transformers are designed with 120% overload capability for two hours, matching the actual operating requirements of data centers with N+1 and 2N redundancy architectures.
When one transformer is taken offline, another unit must have sufficient capacity to continue supporting the load.
Targeted Cooling Design for High-Load Operation
The cooling system has also been specifically optimized.
Through CFD (Computational Fluid Dynamics) simulation, we optimize cooling airflow paths and combine them with ONAN/ONAF cooling methods to control hotspot temperature rise.
Only by effectively managing thermal stress can transformer reliability under high-load operating conditions be ensured.
Second, Improving Delivery Certainty Through Multi-Base Coordination and Material Preparation
Against the background of global supply chain challenges, delivery time has become one of the biggest concerns for project owners.
ZiSheng Electrical improves delivery reliability through:
- Coordinated production scheduling across multiple manufacturing bases
- Advance preparation of key raw materials
- Modularized production organization
These measures help shorten delivery cycles and reduce uncertainty.
For large-scale data center projects, we create dedicated production schedules and reserve manufacturing capacity in advance to prevent delays caused by competing orders.
Third, Our Service Goes Beyond Equipment Delivery
Our support does not end when the transformer leaves the factory.
From:
- Early-stage project consultation
- Equipment selection
- Technical specification development
to:
- Manufacturing progress tracking
- Quality control
- Factory inspection and supervision
and then to:
- Installation guidance
- Commissioning support
- Fault diagnosis
- Technical training during operation and maintenance
we provide a full-lifecycle service solution.
The purpose of this service model is simple:
To ensure that project owners always know where the equipment is, what condition it is in, and who to contact when problems arise — at every stage of the project.
IV. The Logic Behind Data Center Development Is Changing
In the past, when developing a data center, the primary considerations were:
- Whether suitable land was available
- Whether sufficient power capacity could be connected
- Whether network conditions were strong enough
- Whether funding was secured
These factors are, of course, still important.
However, a new variable has now entered the equation:
Can critical equipment be delivered on time?
Transformer procurement is no longer just a supporting activity carried out in the later stages of a project. It has become a key issue that must be secured during the early planning phase.
The developers and EPC contractors who can lock in reliable equipment suppliers earlier will have greater confidence and flexibility in project execution.
This represents a fundamental shift in the way data center projects are planned and delivered.
V. A New Competition From Chips to Power Infrastructure
Over the past few years, competition in the AI industry has mainly focused on chips.
However, more and more people are realizing that:
Even the most powerful GPUs cannot operate without a stable and reliable power infrastructure.
In the future, competition in AI infrastructure will expand from computing capacity to the energy supply side.
The strategic importance of transformers is being redefined.
They are no longer just conventional electrical equipment.
Instead, they have become a critical component that determines whether a data center can:
- Go online on schedule
- Operate reliably over the long term
What ZiSheng Electrical is doing is essentially this:
Through data center-oriented product design, more reliable delivery capabilities, and a complete service system, we help project owners gain greater certainty during a period filled with uncertainty.
About ZISHENG ELECTRICAL
Zisheng are a professional 19+ years manufacturer in producing Oil-Immersed Transformers, Compact Substation, Pad Mounted Transformers, Pole Mounted Transformers and Dry Type Transformers. We own the certificates of ISO/CE/IEC 60076 and TUV Rheinland.
Transformers undergo rigorous FAT and type testing, support voltage/capacity customization. Welcome to consult for Catalog and Product. you can contact us at email [email protected].
