Can the construction industry adapt to the data centre boom?

In recent years, the demand for new data centres has surged, driven by the growing need for AI and data-intensive applications across both the private and public sectors. 

In September 2024, the UK government officially classified data centres as part of the country’s Critical National Infrastructure, and with the creation of AI Growth Zones and other recent legislation, it’s clear demand for new data centres will only continue to grow. In fact, McKinsey analysis predicts that global demand for data centre capacity could rise at an annual rate of 19-22 percent from 2023 to 2030.

Adapting to demand in the face of challenges

The construction of data centres comes with its own specific set of challenges. There are several factors to take into account: the total weight of the server park; the very high energy use density with high peak HVAC loads; a high-end networking infrastructure; state-of-the-art security measures; and a growing focus on using sustainable energy. 

On top of this, location-based challenges - like the risk of earthquakes or flooding - also play a big role. These factors heavily influence where and how data centres can be built, and - when combined with strict construction standards - make the process much more complex and time-consuming than typical building projects.

Data from the Office of National Statistics shows that the UK construction industry is grappling with a critical shortage of workers, causing delays and driving up construction costs. So far, productivity increases from technology adoption have not been able to fill these gaps completely. The construction industry experienced productivity growth of 1% in the last two decades, compared to the European economy at large, which grew 1.2% a year between 2000 and 2022.

There are many reasons for this low productivity growth: slow technological adoption, rigid processes, complex construction regulations and a lack of economies of scale, i.e., most buildings are one-offs.

Unlike in manufacturing, where large corporations often lead innovation, the UK’s construction sector is highly fragmented. Many projects are carried out by a large number of small and medium-sized companies, which have varying capacities to invest in technology. A lack of standardisation and limited financial resources make it difficult to implement the new digital solutions that are urgently needed to boost productivity and efficiency.

A digital-first approach, from planning to maintenance

Across the entire course of a construction project, from the initial planning stages through to delivery and all the way up to the maintenance phase, there is a need for processes to be optimised and better orchestrated. Central to this are shared project models and clear datathat keep everyone informed in a way that fits their role. This helps teams make better decisions, plan more effectively, avoid mistakes, and improve overall efficiency and quality.

Fortunately, the construction industry is experiencing a slow but steady move towards this more connected way of working - and the data centre industry is well positioned to take advantage of this shift. This will benefit the entire data centre lifecycle.

At the planning stage, 3D interactive models speed up planning applications, reduce administrative bottlenecks, and ensure every stakeholder has real-time vision over a single source of truth - all which combine to minimise the impact of any supply chain issues. When groundwork begins, machines can work from the 3D designs and feed back real-time data and progress reports to the office to be shared with other stakeholders and contractors. This seamless flow of information from ‘office to field’ (and back again) is vital in the setting off 24/7 construction.

Developments in multimodal AI, which allow for the analysis of images, 3D scans, and video, are, of course, also becoming increasingly important. These technologies enhance not only on-site functions, such as design, materials management, and worker safety, but also streamline time-consuming office-based tasks like invoicing, procurement and project documentation.

Modernising now to reap long-term benefits

Data center construction requires an end-to-end digital process chain that goes beyond pure construction. Success depends on a connected construction ecosystem where data flows smoothly from planning and construction to commissioning and ongoing maintenance. This supports everything from sourcing materials to managing the project and handling invoicing. Importantly, construction doesn’t stop once the building is complete: data must be managed in a way that supports the smooth installation of servers, cooling systems, and security features, leading up to final commissioning.

A fully integrated approach, led by open collaboration and shared information, ensures a smooth handover to operators, who receive an accurate, up-to-date digital twin of the building. This digital model becomes the foundation for installing equipment and setting up a long-term maintenance plan. This kind of connected process boosts efficiency, improves safety, and ensures high quality, all of which are essential for the future of the data centre industry. Those who adopt modern, digital construction methods today are better positioned for long-term benefits like lower costs, faster builds, and better integration across the entire value chain.