Data Centre Construction Boom Gathers Pace

Posted by Glenigan on 23rd March 2026 -

Glenigan’s construction industry analysis has recorded 29 data centre construction projects with planning permission, and with work expected to start on site this year.

Data centres sit within the office sector, where project starts at an underlying level (valued up to £100 million) are expected to surge by 13% during 2026.

Glenigan economics director Allan Wilén comments: “The development of data centres is expected to be a growing segment within the sector. The government is aiming to attract private sector investment in AI and recently signed a Tech Prosperity Deal, announcing a £30 billion investment to create an AI growth zone in the North East.”

Procurement moves

Mercury Engineering was appointed as contractor on Vantage Data Centre’s £284 million CWL2 Data Centre Campus at Barry in South Glamorgan (Project ID: 22038068). With planning permission secured in 2024, construction should commence this summer.

Appointment of a contractor is imminent for the £100 million second phase of Pure Data Centres’ LON01B2 scheme at Brent Cross in north London (Project ID: 22210304). Once confirmed, work could also begin later this spring.

Procurement is also underway on a swathe of data centre construction projects with a 2026 start date, such as the £750 million Bidder Street Data Centre at Newham in East London (Project ID: 22299265). Tenders have been returned, and the joint clients, sineQN London, IXDS, Legal & General, and Goldacre are finalising planning conditions with the council ahead of a start later this spring.

Capital focus

London is the focus for much of the data centre construction projects. Seven of the 29 data centre projects slated for a construction start over the next 12 months are based in the capital.

Other major data centre schemes to start this year include the £8 billion Amazon Web Services Data Centre in the City of London (Project ID: 24262128) and buildings in the G Park Docklands Data Centre, including the £400 million LCY11 plot (Project ID: 23119996).

Provincial plans

Two of the biggest upcoming data schemes are outside of London.

The £5 billion CWL41 development on the Waterston Industrial Estate in Bridgend (Project ID: 24243526) is one of four major data centres in Wales with a start anticipated over the next 12 months.

The £3.4 billion AI Pathfinder Chelveston at Wellingborough in the East Midlands could also start this year (Project ID: 25464106).

Big plans

More proposals are in the pipeline, and plans have been drawn up for a 6MW carbon-friendly data centre at the £300 million Silicon Sands digital infrastructure development next to Blackpool Airport (Project ID: 23313227). Procurement has begun, and work could also begin this year.

Elsewhere, Equinix has bought a site at South Mimms in Hertfordshire from data centre developer DC01UK, clearing the way for a proposed £3.7 billion scheme (Project ID: 24258265). The proposals have been rebranded as the Hertfordshire Campus, and work is expected to commence in 2027.

Growing market

Further out, Glenigan has identified 246 data centre construction projects at the pre-tender stage, which shows the size of a growing market that should provide plenty of opportunities in the future.