Infrastructure demand is fuelling UK construction activity compared to the rest of Europe, research from global construction consultancy Linesight shows.
The UK is seeing strong momentum in data centre development, underpinned by data centres being classed as critical national infrastructure in September 2024.
The country is attracting £14 billion of investment from a number of private firms, alongside Amazon’s reported £8 billion UK commitment for cloud and AI expansion.
Michael Riordan, managing director, UK with Linesight, said: “The construction industry is benefitting from the momentum created by government policies that are focused on not only sustainability initiatives, but also data centres, life sciences and manufacturing growth strategies.
“However, the broader environment remains uncertain, shaped by geopolitical instability and regional conflicts that continue to influence supply chains. Trade barriers and persistent labour shortages are adding further complexity to cost planning and procurement.”
Demand for data centres across Europe is predicted to rise from 10 GW in 2024 to around 35 GW by 2030.
This could more than double energy consumption, from 62 terawatt-hours (TWh) today to over 150 TWh by the end of the decade, highlighting the urgent need for grid infrastructure upgrades, access to renewable energy sources, as well as the adoption of energy-efficiency measures.
Grid access delays present additional challenges and Ofgem has proposed reforming the UK’s grid connection system, which would prioritise ready and essential projects. The aim is for the first connections to be operational by 2026.