Insights · Data centres
Where was your transformer made? Data centre buyers are starting to ask.
Power equipment is now the slowest part of a data centre build, and much of the steel and copper inside it comes from China. Hyperscalers, lenders and, soon, UK regulators will want to know where a transformer came from and who made it. Suppliers who can show that are better placed to win the order.

Data centre timetables now depend on electrical equipment more than on land or finance. Lead times for large transformers have stretched to around three years, and buyers are taking capacity wherever they can find it.
That brings a second question with every order: where was this made, and from what? Most hyperscalers are US companies, and their supplier codes tend to carry US expectations wherever they build. A transformer for a site in Slough or Dublin can face the same questions as one for Virginia.
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The steel inside the transformer
Every power transformer has a core of grain-oriented electrical steel. In the EU, local mills’ share of that market has fallen from 66 to 43 per cent, and more than half of imports now come from China. In March the European Commission opened a safeguard investigation into imports of this steel and of finished transformer cores.
A transformer assembled in Europe can still carry a Chinese core. The buyer will want to know which.

The copper in the windings
Copper is now on the forced labour enforcement map. In August the US added 43 companies to its forced labour Entity List, including copper producers. In June US Customs issued an order holding copper from a producer in Serbia at the border over forced labour concerns. Moving production to a friendly country does not put it out of reach.
Read our earlier insight on the UFLPA expansion into aluminium and copper.
UK regulation is coming
The Cyber Security and Resilience Bill brings data centres of 1MW and above into regulation, with Ofcom as regulator. It also lets regulators name critical suppliers, which could bring providers of power, cooling and security equipment into scope directly. The Bill is in the House of Lords, and most duties will follow in secondary legislation.
Its focus is security and resilience, not origin. But regulators will be able to look at who a data centre depends on, and the ownership and origin of critical equipment are part of that picture.
What to check before your next tender
- Name the maker. For each transformer, switchgear panel and UPS you supply, record who made it, not only who sold it to you.
- Trace the materials. Ask where the core steel and the copper windings came from, and check whether the steel mill or copper smelter, or its owner, is on a US, UK or EU list.
- Trace the owners. Follow each manufacturer’s ownership to the top.
- Read the contract. Check what happens if a shipment is held at a border.
A supplier who can answer these in one document is easier to approve, and faster to pay.

Where we come in
Meridian Intermediaries gives you one file you can hand to a hyperscaler, an EPC contractor or a lender. It shows:
- who made each item of equipment, and who owns them;
- where the steel and copper came from;
- the list status of every party, with a source and a confidence grade for each fact.
Quoting for a data centre package? Request a Supplier Risk Check → or speak to us first.
Sources
- 36-Month Lead Times Turn Transformer Shortage Into Data Centre Site Selection Kingmaker (Datacentres.com, 7 August 2026)
- Transformer Steel Becomes a Trade Flashpoint in Europe (IEEE Spectrum, 14 October 2026)
- EU Safeguard Investigation on GOES and Transformer Laminations Initiated (HKTDC Research, March 2026)
- UFLPA Entity List at 187: What the August 2026 Expansion Means for Importers (Strix, 27 August 2026)
- Forced Labor Enforcement Just Crossed a Border: What CBP’s Serbia Copper WRO Means for Your Supply Chain (Diaz Trade Law via Mondaq, 23 June 2026)
- Cyber Security and Resilience Bill: what you need to know (Howden, 2026)
- The Cyber Security and Resilience Bill: a new era for data centre regulation (Travers Smith via Lexology, September 2026)
Published 4 November 2026. General information, not legal advice; the position may have changed since publication.
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