UK building engineering firms leading growth in data centre construction

UK growth in data centres drives building services shift

The Building Engineering Services Association (BESA) has reported that building services contractors are increasingly taking the lead in UK data centre projects.

According to BESA, this shift is supported by new industry data and discussion at a roundtable event held in Manchester.

The Association said that UK data centre development has grown substantially in the last five years, with the rise of artificial intelligence (AI) expected to drive further growth.

The Barbour ABI market research group confirmed that data centres were the “boom segment of 2024,” noting a sharp rise in planning application values from £1.3 billion in 2023 to £2.6 billion.

BESA projects the UK market could reach £1.1 trillion by 2030, up from £2.3 billion today.

Building engineering firms take lead contractor role

According to the latest edition of BESA’s Top 30 Contractors report, data centres, along with pharmaceutical and defence facilities, are continuing to grow despite wider economic uncertainty.

The report states that in many of these projects, building services represent over 60% of the total project cost.

This makes mechanical, electrical and plumbing (MEP) firms the de facto lead contractors in an increasing number of cases.

At the BESA roundtable, technical director Kevin Morrissey said: “The pace of growth provides significant opportunities for companies to scale up and diversify.

“However, the pace of growth is putting pressure on supply chains and our members are facing significant resource constraints in these high demand sectors.

“We also need to be mindful of the impact of rapid development on the environment and natural resources, particularly energy and water consumption.

“Sustainability must be considered in every project. One key issue is how we use waste heat from data centres in heat pumps and district heating networks.”

Off-site fabrication and quality control in data centres

The roundtable, chaired by Remi Suzan, managing director of Gratte Brothers Ltd, discussed the role of off-site fabrication in addressing workforce shortages and improving efficiency.

Suzan said: “The discussions at this week’s BESA roundtable underscored the critical role that our industry plays in the data centre sector.

“We are helping to drive innovation, sustainability, and resilience in our digital economy.

“As the industry continues to evolve, collaboration and forward-thinking strategies will be key to ensuring we meet growing demands efficiently and responsibly.”

Andy Harrop from Armstrong Fluid Technology noted that off-site methods also contribute to improved quality control.

He explained that this is particularly important in data centre projects, where precision and consistent performance are key requirements.

However, participants also pointed out that off-site fabrication requires higher upfront investment and careful planning.

Geographic concentration and infrastructure pressure

Barbour ABI’s head of analytics Ed Griffiths told attendees that the south east of England and London remain key areas for data centre construction.

He said this is due to their proximity to undersea cables and energy infrastructure.

Griffiths added that these regions are reaching capacity, which will prompt expansion in other parts of the UK.

He stated that ongoing government infrastructure priorities will likely support this trend, but added that planning departments will face increased workload as demand grows.

Addressing skills gaps in the data centre sector

BESA’s head of skills and policy Stuart Rattray said the Association is investing in long-term workforce development to support industry growth.

Rattray said the BESA Academy is focused on building awareness, developing apprenticeship opportunities, and aligning training with employer needs.

He explained that attracting younger workers and managing an ageing workforce were among the key challenges.

Rattray added that BESA is also involved in setting National Occupational Standards and designing sector-specific competency frameworks for data centre-related roles.

He said these efforts are necessary to ensure the industry is equipped to meet the growing demand for skilled professionals.

UK building engineering firms leading growth in data centre construction: Summary

The Building Engineering Services Association (BESA) has reported increased involvement of UK building services contractors in data centre projects.

The announcement follows the release of BESA’s annual Top 30 Contractors report and an industry roundtable discussion.

BESA said the UK data centre market is currently worth £2.3 billion.

BESA projected that this market could reach £1.1 trillion by 2030, driven by AI and digital infrastructure growth.

Barbour ABI reported that data centres accounted for £2.6 billion in planning applications in 2024.

The roundtable discussed the growing role of MEP contractors in leading these projects.

In some cases, building services make up more than 60% of a data centre’s total project value.

Off-site fabrication was highlighted as a method to improve speed and quality.

BESA said workforce shortages remain a concern.

It is developing training, recruitment and competency strategies through the BESA Academy.

Barbour ABI said that while the south east and London dominate the market, other regions will soon see expansion.

BESA’s Annual Conference on 16 October will include further discussion on data centre project delivery.