The latest report by the Association revealed a significant surge in UK data center development over the past five years, with projections indicating a market growth from £2.3 billion to £1.1 trillion by 2030, driven by the rapid expansion of artificial intelligence (AI).
The construction market research firm Barbour ABI supported these findings, labeling data centers as the booming segment of 2024. Planning applications for data centers nearly doubled in value from the previous year, reaching £2.6 billion.
Despite broader economic uncertainties, data centers have continued to thrive alongside other high-tech sectors like pharmaceuticals, life sciences, and defense industries. These findings were outlined in the Association’s annual Top 30 Contractors’ report.
With building services accounting for a significant portion of project value in many facilities, mechanical, electrical, and plumbing (MEP) providers often assume the lead contractor role, as highlighted in the report.
During a roundtable discussion in Manchester, BESA’s technical director, Kevin Morrissey, emphasized the vast growth opportunities in the sector. However, he also acknowledged the strain on supply chains and resources due to the rapid expansion.
Sustainability emerged as a crucial consideration, with a focus on optimizing waste heat from data centers through innovative solutions like neat networks and heat pumps to minimize environmental impact.
The role of off-site fabrication in expediting project timelines and filling skills gaps was a key topic at the BESA Roundtable chaired by Remi Suzan, managing director of Gratte Brothers Ltd. This approach, while requiring upfront investment, offers enhanced quality control, particularly valued in sectors like data centers.
Ed Griffiths, head of analytics at Barbour ABI, highlighted the south-east and London as current hotspots for data center development, but noted the impending saturation would drive expansion into other regions.
Amid the government’s infrastructure focus, building engineering firms must address skills shortages and workforce aging to capitalize on sector opportunities. BESA’s head of skills and policy, Stuart Rattray, detailed the Association’s efforts to tackle these challenges through the BESA Academy and skill development initiatives.
Collaboration and forward-thinking strategies were emphasized as essential for meeting growing demands in the evolving data center sector, as discussed at the BESA roundtable.
The upcoming BESA Annual Conference in London will delve into the growth prospects of data centers and high-value building engineering sectors, offering insights on expanding businesses in the industry.
