Basically, everything in your server room or data center is made of aluminum. As almost every news source reports, there are now tariffs on aluminum and steel with no exceptions or exemptions (as of February 10, 2025). Because of this, anything that you order for your server room, data center, network closet, etc., will cost more today unless it is already in the country. Unfortunately, most large servers are built to order and usually have decent lead times, meaning that they are shipped from overseas. Even if they are already here, the domestic supply will run out, and eventually, the vendors will have to resupply, which means ordering from overseas.
This means that we can expect everything we need in order to run the IT parts of our companies to get more expensive to cover the cost of the tariffs. One way that companies can offset these costs is to look to the cloud instead of purchasing more computer equipment. This could mean extending your existing on-premises environment to the cloud until the tariffs are lifted or moving some or all of your existing on-premises environment to the cloud to manage these increased costs better.
If you would like help deciding what to move or to set up your cloud environment, contact our team to set up a free consultation to start (or continue) the cloud journey.
Denny
