The construction phase
What goes into constructing a data centre?
The total value of investments includes land, power, shell, equipment (often the cost of IT and networking equipment is included when big value announcements are made). Once the finance has been committed, the power secured from the grid (or microgrid developed – see below) and the land acquired the construction process can commence.
Like many plays in the property space, the data centre sector refers to ‘shovels in the ground’ as marking the start of the construction process. The important point is that construction creates skills based employment and economic activity.
According to research analyst Mordor Intelligence the UK data centre construction market is projected to reach $1.94 billion in 2025, with expectations to grow to $4.24 billion by 2031, reflecting a compound annual growth rate (CAGR) of 13.96%. Including electrical and other equipment as part of construction value Horizon Grand View research set the 2024 UK data centre construction market value at $11.2bn rising to $21.6bn by 2031.
The data centre construction value chain spans architects, design engineers, main contracting construction companies, sub-contractors, and the materials supply chain of everything from equipment to steel and glass to concrete. Among the more recognisable names are MACE, and property services giant CBRE.
Mordor lists AECOM, Jacobs Engineering Group, Turner and Townsend, Arup and Collen Construction Ltd as the major UK construction players in what it describes as a highly competitive market with no single dominant company.
UK Data Centre Architects & Engineering Consultants include Arup whose services include site selection, master planning, design, and sustainable data centres. Sweco services include structural engineering, architecture, and environmental assessments. It has delivered 5.5GW of capacity in the UK and EMEA. RED Engineering Design specializes in MEP, and sustainable energy-efficient data centre designs.
The UK’s data centre sector is experiencing significant growth in 2025, leading to increased demand for skilled professionals in engineering, construction, and operations.
Broadening and deepening the talent pool is also a challenge faced by the power industry and critical infrastructure sectors such as data centres. This is why in October 2024 the AVK Academy was launched as a dedicated hub that plays a pivotal role in providing comprehensive training combining theory and practical application resulting in City + Guilds certification. The Academy is the perfect entry point to industry for the new generation of engineering professionals who will shape the green energy transition who are seeking technical expertise and deep understanding of the changing power landscape. AVK Academy‘s programmes are designed to provide a comprehensive education that prepares participants for the future of power generation. By joining the Academy, trainees (whether they are starting out of seeking to enhance their skills) can become part of a vibrant community of like-minded individuals who are passionate about making a difference in the industry.
As of 2024, the UK data centre industry supported approximately 43,500 jobs, encompassing roles in engineering, operations, and construction. This is expected to grow. By 2035, the sector is expected to create an additional 40,200 operational roles and 18,200 construction-related jobs, totalling over 100,000 positions says The UK’s technology trade association.
This has not gone unnoticed. The expansion of data centres has led to a surge in demand for specialized engineering and construction professionals, the Guardian reported.
But this is a big challenge for the industry. The Construction Industry Training Board estimates that the UK needs to recruit 50,300 extra workers annually over the next five years to address the shortfall.
Meanwhile construction itself is becoming digital. AI is helping with supply chain, efficiency, helping coordinate material delivery, reducing waste and carbon impact and making the whole construction process more efficient. A report from the Royal Institute of Chartered Surveyors, (RICS) says “AI is likely to transform the role of construction project managers by automating tasks such as project scheduling, cost estimation and risk management. …AI can enhance the decision-making and problem-solving capabilities of professionals in the built environment, augmenting their skills and improving overall productivity.”
Energy Provision
The value to the economy of powering UK data centre growth is closely tied to the green energy transition strategy.
The demand for clean power is being met by AVK through Microgrid and power delivery technologies. The quest for sustainable power at scale will require new designs, and new approaches. AVK has designed and deployed microgrids providing over a GW of power for back up resilience and primary baseload power. For data centre operators seeking secure power through on-site grid-coupled or grid-independent microgrid power plants —composed of clean fuel generators, containers, control services, CEMS, fuel tanks, switchgear,loadbanks, relays & controls, battery storage solutions and microgrid operations & maintenance—AVK provides deep engineering expertise and specialist knowledge across a range of disciplines, with proven success in microgrid design, operation and management.
According to a number of reports the UK microgrid market was worth around $3.05b in 2023 with a compound annual growth rate (CAGR) of around 12.9% to 2027 and it can be expected reach USD $9.36b by 2030 with a CAGR 17.3% from 2024 to 2030.
Beyond the existing microgrid constituent parts and ancillary services new economic value is being created across the power ecosystem through emerging technologies.
According to the Faraday Institution Supply Chain Impact study: “The development of new battery energy storage technologies and production in gigafactories is anticipated to create 35,000 direct jobs and an additional 65,000 jobs in the supply chain, encompassing roles in cathode, anode, electrolyte, and separator production, as well as battery recycling.”
In the data centre sector alone the power market—including UPS systems—was valued at $1.24 billion in 2023, with projections to reach $2.17 billion by 2030, reflecting an 8.4% CAGR according to Grand View Research
Data centre campus developments of 500MW to GW+ have already been linked with Small Modular Reactor development which in the UK sees Rolls Royce the most high profile player.
The company states that in terms of economic impact of SMRs its programme alone is forecasted to create 40,000 regional UK jobs by 2050 and generate £52 billion in economic benefits. Rolls Royce SMR will use the breadth of the UK supply chain, which is able to contribute more than 80% of each SMR by value – focusing on standardised, commercially available and off-the-shelf components.”
Rolls-Royce SMR will move away from the high cost and high-risk complex construction programme principles into predictable factory-built commodities.
As AI and hyperscale data centre campuses come on stream the sector will be a key SMR market.
AVK has a long-standing and exclusive partnership with Rolls-Royce Power Systems for the supply of MTU brand standby generation sets in the UK and Ireland. The exclusive partnership for the supply of supply of MTU Series 2000 and 4000 systems in a range extending from 825 to 4,000 KVA was announced in 2019.
2024 was a record year for AVK supplied mtu generators from Rolls-Royce with over 500 HVO-ready solutions sold into data centre, industrial and buildings sectors, underscoring the market’s trust in AVK and Rolls-Royce.
The size of the economic impact of data centre power demand required for AI was in evidence in April 2025 at the first meeting of the UK AI Energy Council led by Minister for Energy Security and Net Zero, Ed Miliband and Peter Kyle, secretary of state for Science and Innovation and Technology.
Attendees to the first meeting of the AI Energy Council included representatives from Ofgem, NESO, Energy Networks Association, Nuclear Industry Association, ScottishPower, National Grid, EDF, Google, Microsoft, Amazon Web Services, Equinix, Brookfield, ARM and ARIA. The council will meet on a quarterly basis, with the next meeting scheduled for this summer as the council develops strategies to power the AI revolution with low carbon, green energy technologies.
The value on the data centre demand side – UK’s AI company investment
Ultimately data centre economic value is in the turnover and profits of the digital economy. The UK is already a major AI market in terms of capital investment raised, valuations, and the booming number of AI companies.
According to tech investment analysts Beauhurst: “There are currently 2,361 AI companies across the UK that have hit one or more of our high-growth signals—all indicators of ambitious growth plans and future startup success. Since May 2022 the UK AI market has boomed with £8.48b in equity investment swelling to £18.1b as of January 2025.
This makes artificial intelligence one of the best-funded industries in the UK, surpassing fintech and behind only the software-as-a-service and mobile application industries.”
The biggest UK AI companies by value are autonomous vehicle AI software developer Wayve with a value at over $2bn, Darktrace AI cyber security raised £427m in an IPO, and Lendable, now valued at £3.02b and has raised £216m in total across seven rounds.
UK based M&A advisory firm GSVerde listed the valuations of UK AI companies in healthcare and biotech sector including Cera: whose AI-driven mobile app ‘is to enhance healthcare delivery through homecare and consultations.’ The company so far raised £366m in funding. BenevolentAI uses AI to speed up the process of scientific discovery raising £253m and being listed on the Euronext Amsterdam stock exchange.
Exscientia uses AI to design small molecule drugs and has raised £300m in equity as well as achieving a £226m IPO on NASDAQ.
In total valuation of UK AI sector companies has reached over $230bn making it Europe’s largest AI market.
Conclusions
Like all major developed economies the UK requires economic stimulus to maintain GPD growth. It is obvious that much of the stimulus for growth will come from the AI revolution driven digital economy.
For the economy to grow requires integrated green energy and digital infrastructure on a scale not dissimilar to that of mass electrification over a century ago.
Data centre infrastructure investment, construction, power and operation which make up the foundation layer of AI and digital transformation of industry, business and society is where it begins.
