Building services contractors are emerging as key players in the UK’s rapidly expanding data centre sector, according to the Building Engineering Services Association (BESA). With mechanical, electrical and plumbing (MEP) services now accounting for over 60% of total project value, clients are increasingly turning directly to engineering firms to deliver complex, high-value builds.

Described by BESA as the “boom segment of 2024,” the UK data centre market has grown dramatically in recent years. Planning applications nearly doubled to £2.6 billion, driven largely by soaring demand for AI processing power. Industry forecasts estimate the sector will leap from £2.3 billion today to £1.1 trillion by 2030—highlighting its strategic and economic importance.

The South East and London remain focal points for new development due to their access to energy sources and undersea cable links. But mounting pressure on these regions is prompting expansion into other parts of the UK, aided by government infrastructure plans aimed at boosting regional growth.

Major investments are helping to fuel this surge. Amazon Web Services has committed £8 billion to UK data centres over the next five years, a move expected to add £14 billion to GDP and create over 14,000 jobs by 2028. The UK government is also classifying data centres that store sensitive data as critical national infrastructure, enhancing protections against cyber threats and digital disruptions.

Yet the pace of expansion is testing industry capacity. BESA Technical Director Kevin Morrissey warned of growing pressure on supply chains and skills. He called for urgent action to attract new talent and address an ageing workforce to ensure the industry meets rising demands.

Sustainability is a parallel concern. With AI intensifying energy and water consumption, firms are exploring heat recovery systems and heat networks to reduce environmental impact. The government’s strategy includes AI growth zones, increased public computing capabilities and plans for small modular nuclear reactors to maintain energy supply while meeting net-zero targets.

However, some projects face local opposition. In Abbots Langley, residents have raised concerns about the strain on community resources and environmental effects, underlining the need for better engagement and more sustainable design approaches.

Despite these challenges, the UK is well placed to lead Europe’s data centre construction market, which surpassed $11 billion in revenues in 2024 and is set to double by 2030. Growth will be especially strong in power distribution and cooling infrastructure—critical components of efficient, low-impact data centres. As roundtable chair Remi Suzan noted, building services contractors are central to delivering this digital infrastructure responsibly. With government support, private investment and industry expertise converging, the UK has a clear opportunity to lead on data centre innovation, sustainability and digital resilience.

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