The Physical Foundation 
of the Digital Cloud

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When we stream, when we save data or when we use artificial intelligence, the technology that drives it goes unnoticed to us. Kuehne+Nagel works behind the scenes to keep the logistics precise, so that things stay that way. The Company has acted early and developed a specialised solution to enable the massive growth in cloud infrastructure.

 

“Cloud” might sound light, but the physical reality weighs tons. Thousands of high-performance racks need to be installed in data centres all over the globe to satisfy the modern world’s voracious appetite for data. The boom in artificial intelligence (AI) in particular has changed the rules of the game: hardware is becoming more powerful, faster than ever, but also heavier and, above all, more expensive. Nowadays, a single server rack can be worth as much as a detached home. Once it became apparent that conventional methods would no longer be able to serve the biggest cloud providers, we acted swiftly and briskly. We created a dedicated unit that focuses solely on the complex requirements of the cloud industry.
 

In the right place at the right time

In order to serve this demanding market, we specifically enlisted expertise. Ro Sharma, Global Head of Cloud+ Semicon Strategy, left a market partner six months ago to join Kuehne+Nagel. “I have over 20 years of experience in high-tech logistics and arrived at just the right time,” says Sharma, who operates out of California. “Because it is important to realise that this industry is not just a normal standard freight one, but one that requires customised solutions, including speed and agility.”

“We deliver more than just hardware. We provide our customers with the peace of mind that their critical infrastructure will arrive safe and sound.”

Ro Sharma, Global Head of Cloud+Semicon Strategy

Precision down to the last detail

Kuehne+Nagel’s solution for cloud infrastructures offers more than just transport:

  • Secure Cloud Deployment: The package involves unpacking, final delivery to aisle, and packaging material  removal for recycling by trained teams.
  • Full transparency: Sensors monitor real-time shock, inclines, temperature and even lighting to guarantee that server cabinets remain intact and secure in transit.
  • Sustainability: Large-scale customers make the most of the partnership to significantly attain their Scope 3 emissions goals by using SAF, a renewable fuel. This reduces the indirect emissions across the supply chain. In 2024 alone, for example, certificates were obtained for over 14.6 million litres of the sustainable fuel.

 

 

The requirements go far beyond mere transport from A to B. Since the technology is extremely sensitive, Kuehne+Nagel’s service focuses on utmost care and precision. This approach is known as a high-care service in the industry, but Kuehne+Nagel has taken the standard much further and calls it “Secure Cloud Deployment”. This means that specialised teams do more than just bring the server racks to the loading ramp – they drive them in air-ride vehicles directly to the data centres, uncrate the racks, install any components required, position the racks in allotted locations inside the data centres and remove the packaging material for recycling. An end-to-end service, in other words.
 

 


4.6 billion

CHF forecasted capital expediture 
by US hyperscalers in 2026

 

 

Safety a top priority

Nothing is left to chance. Digital checklists provide milestone updates and sensors monitor temperature, shock, vibrations, and lighting throughout the entire journey. “Our customers invest millions in this hardware,” explains Sharma. “We provide them with one thing above all: peace of mind.” Routes are thoroughly analysed in advance thanks to a special risk mitigator system. This allows dangers to be ruled out before transport even starts.

Our cooperation with our customers also sets new standards when it comes to sustainability. The biggest player on the market does more than just draw on Kuehne+Nagel’s logistics expertise, it also invests extensively through a joint programme in sustainable aviation fuel (SAF), a fuel produced from renewable resources. Kuehne+Nagel has reciprocated by migrating its own systems to their cloud. It is a true partnership that shows how physical logistics is not just a support service, but also a crucial enabler in a constantly evolving digital world.