Data Centre Construction Boom Gathers Pace
Glenigan has identified 29 data centre projects that have planning permission and are expected to start on site this year. Data centres fall within the office sector, where underlying project starts (those worth up to £100 million) are forecast to rise by 13% in 2026.
Glenigan economics director Allan Wilén expects data centres to be a growing part of the sector, pointing to government efforts to attract private investment in AI, including a £30 billion Tech Prosperity Deal to create an AI growth zone in the North East.
Procurement is moving on several schemes. Mercury Engineering has been appointed on Vantage Data Centres' £284 million CWL2 campus at Barry, South Glamorgan, with work due this summer. A contractor is about to be named for the £100 million second phase of Pure Data Centres' LON01B2 at Brent Cross. Tenders have been returned on the £750 million Bidder Street scheme in Newham, where the clients are finalising planning conditions.
London accounts for seven of the 29 projects due to start in the next 12 months, including an £8 billion Amazon Web Services data centre in the City of London and the £400 million LCY11 plot at G Park Docklands.
Two of the largest schemes are outside the capital: the £5 billion CWL41 development in Bridgend, one of four major Welsh data centres expected to start within a year, and the £3.4 billion AI Pathfinder Chelveston near Wellingborough.
Further ahead, plans include a 6MW low-carbon data centre at the £300 million Silicon Sands development by Blackpool Airport, and Equinix's proposed £3.7 billion Hertfordshire Campus at South Mimms, expected to start in 2027. Glenigan counts 246 more data centre projects at pre-tender stage, pointing to a substantial pipeline.
