News / The Loadstar explains: Servers – the next big thing – how to ship them

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I hear there’s a new buzzword in airfreight that’s taking up capacity. 

You mean ecommerce? We’re over talking about that now, everyone’s doing it. Even with possible new rules, it can still slip under the radar. 

No, I hear servers are the new thing. 

Ah, yes, the power behind AI. As Asok Kumar, head of global airfreight for DB Schenker, recently said: “AI, that is absolutely growing bonkers. I think it’s the movements of these servers, from Taiwan, Bangkok, etc, – incredible.” 

That’s it. So what is a server? 

Servers are the critical hardware at the core of a computer network. It is a computer that provides resources, data, programs and other services to other computers. Depending on what you need, there have been file servers, network servers, game servers and database servers – but now everyone is into AI, there are also specialised AI ones, which tend to be bigger. 

AI requires vast amounts more power than traditional servers, as they have to process huge amounts of data, which is actually one of the main challenges in the world of AI – the enormous amount of energy it takes. This may also mean companies need upgraded power distribution units (PDUs).  

And you need racks: servers tend to be stored in racks – again, AI servers need a bigger rack, or cabinet. 

And how big are they?  

Well, we are swiftly learning that they come in a multiple of sizes and types. But generally, servers seem to be between about 20kgs (50 lbs) and up to 900kgs (2,000lbs) for a heavy-duty AI one. They tend to be thin, but heavy. And they can be shipped in their racks. 

And are they complicated to ship? 

Well, yes, it appears so. According to Seko Logistics, server racks can be the most expensive equipment in a data centre, so they need to be handled carefully. As “sensitive electronic equipment”, they can’t be too hot or too cold, or exposed to humidity or dust.  You might not be able to tip or tilt them, and even small impacts can cause damage. And because servers are all different sizes and weights, they will need custom packaging. 

Bubble-wrap is one easy solution to cushion any blows inside the crate, as are shipping blankets. Seko adds that you’ve got to be especially careful of edges and sharp corners. 

Once on a truck, they should be strapped to the sides to avoid slipping, and drivers should be made aware of the contents – and add security measures. 

So if I damage one, how much would it cost?

The prices of servers vary from not very much, to really, quite a lot. Perhaps $50,000 for a high-performance one – but big business will likely need more than one. 

What’s the deal with temperature? Is it like shipping pharmaceuticals?

Where there is massive power consumption, there tends to be heat – so they need cooling systems, which means you need to treat them carefully. According to the American Society of Heating, Refrigerating and Air-Conditioning Engineers, servers should be shipped at a temperature of between 18°C and 27°C (64.4° to 80.6° Fahrenheit). The relative humidity should be between 20% and 80%. 

So, is it worth it? Is this a commodity that’s here to stay, or will it be a one-year wonder?

Can you remember where you were when ChatGPT launched? No? 30 November 2022. And that’s when it really all began. 

According to Statista, about 14 billion servers were shipped around the world in 2023. But the real growth is in AI servers. According to Digitimes Asia, 1.28 million AI servers will be shipped this year, an increase of 183% for high-end servers over last year. And the top five manufacturers will account for 77% of the market. 

So, where are servers made? 

Taiwan, quite specifically. It has 90% of the AI server market and 83% of the general server market. But new markets are opening: Lenovo has started making them in Puducherry, South India. Happily, for those trying to avoid tariffs, China is not a big manufacturing base for servers. Apparently US companies wanted to avoid the smartphone phenomenon, where many core components ended up being made in China. So they have looked elsewhere. As a result, Mexico is becoming popular, with major players urging Taiwanese manufacturers to develop facilities in the country. But there may be an issue with tariffs there too. 

And where are they going?  

Everywhere. But one place to watch will be the Stargate project, OpenAI and Microsoft’s new data centre project, which is set to open in 2028. Stargate will be the world’s largest super-computing facility. Based in Wisconsin, it could span several hundred acres, at a cost of about $100bn. And it will need a lot of tech. 

So why do servers fly? 

The same reasons that most things choose air: they need to be handled with care, are often needed urgently and can be very valuable. 

As Mr Kumar said, it‘s a trend in air that “feeds into what’s coming next year and the years ahead”.