Could data centres power the next wave of growth for the construction sector?

As we navigate through 2025, the construction industry might be about to witness a transformative shift. While traditional sectors like residential housing have faced challenges recently, a new driver of growth has emerged: the booming demand for data centres.

Read this week’s blog to find out more about why data centres are an important part of our infrastructure as well as the opportunities and challenges this poses for our industry.

Why data centres matter

In our increasingly digital world, data centres have become a critical part of the infrastructure that supports our way of life. While roads support our ability to get around and houses support our comfort, data centres are supporting the digital activities we’ve come to rely upon – everything from cloud computing and streaming services to artificial intelligence (AI) and online commerce.

A surge in demand

As people do more and more activities online, the demand for data storage, cloud computing, and AI processing has skyrocketed. This has fuelled massive investments in data centre infrastructure, opening up a new market for the construction industry.

Two recent reports shed further light on the scale and implications of this growth:

Capacity growth: According to RLB’s Data Centre Trends Report 2025, with a flood of private equity investment, commissioned data centre capacity has surged by nearly 300% since 2023.
Retrofit opportunities: The same RLB report reveals that 66% of industry respondents plan to retrofit at least a quarter of their existing data centre estate in the next five years – pointing to a growing retrofit market alongside new builds.
UK’s strategic position: PwC’s report, UK Economic Outlook – Spring 2025, notes that the UK now accounts for around 20% of all data centre investment in Europe. This is due to a combination of a favourable legislative environment, robust connectivity and a strategic location.

Opportunities for the construction industry

The data centre boom presents several opportunities for construction professionals. For instance, it’s likely to lead to us all working on more diverse project types. From building new facilities to retrofitting existing structures, there’s a broad spectrum of projects requiring specialised construction services.

Another key opportunity for the sector comes from how constructing data centres involves the integration of advanced techno technologies. This offers construction firms the chance to upskill and innovate.

Challenges

While the opportunities could be significant, the sector also has some challenges to navigate:

Supply chain strain: The RLB report found that more than 70% of over 500 surveyed industry respondents believe the supply chain is struggling to keep pace with demand, and 53% fear that the sector may fall short of future capacity needs.
Skilled labour shortage: The specialised nature of data centre construction necessitates a workforce skilled in areas like electrical systems and heating, ventilation and air-conditioning – highlighting the need for targeted training and recruitment.
Infrastructure and planning: Some industry professionals point to two further problems – securing adequate power supply and navigating complex planning permissions. Both are key hurdles to delivering projects at pace.

Looking ahead

The UK construction sector is expected to grow by 2% in 2025, with data centres driving much of this growth. Commercial building projects are predicted to grow by 1.7% in 2025 and climb to 4.5% by 2027 – a welcome shift towards recovery after recent slowdowns.

For construction companies, this presents a genuine opportunity to expand and diversify. By focusing on the unique needs of data centre projects and working through the challenges, they can take advantage of this growing demand for digital infrastructure.

What do you think?

Are data centres the future growth engine for construction? What opportunities or challenges do you see ahead for the industry as it adapts to this rapidly expanding sector? Join the conversation on our Facebook or LinkedIn pages.

03.06.2025

Feature image: Freepik

Sheriff’s 20th anniversary charity challenge

Sheriff Construction turns 20 this August and we’re marking the milestone in more ways than one. As well as celebrating two decades of teamwork, resilience and growth, we’re also taking on a major challenge: to raise £20,000 for charity by the end of 2025.

This ambitious fundraising target is our way of giving back to the communities and causes that matter to us – and it reflects our team’s generous spirit and determination to make a real difference. Find out more in this week’s blog.

Collage-style image showing several members of Sheriff Construction's office team walking. Some people are wearing British Heart Foundation tops and there is also an image of a dog joining the walks

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20 May 2025

Keep on Moving: Why movement matters – and how we’re walking the talk this May

It’s easy to get stuck at your desk when there’s a deadline looming or a big task in front of you. Hours can go by before you realise you haven’t stood up, stretched or even moved more than a few steps. Most of us know that staying seated for too long isn’t great for our health – but still, we often just crack on with our day regardless.

That’s why we’re focusing this week’s blog on why it’s so important for office workers to add movement into their day – and some simple ways to do it, even during a busy work schedule. Plus, we’ll share how our office team is putting this into action by walking 1,000 miles this May!

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13 May 2025

Mental health and the power of community

This week is Mental Health Awareness Week (12–18 May 2025), and the theme is one that couldn’t be more relevant to us in construction: ‘community’.

At Sheriff Construction, we’re taking this opportunity to join the conversation by exploring why being part of a community is so important for mental health, shining a light on the worrying rates of suicide in construction, and considering what we can all do to support each other better. Join us by taking a moment to read this week’s blog.

A man and a woman on a construction site talking face-to-face

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6 May 2025

Deaf Awareness Week: We all deserve to be heard

Did you know that around one in three adults in the UK are deaf, have hearing loss or experience tinnitus (a persistent ringing, buzzing or humming sound in the ears with no external source)?

Given this prevalence, it’s very likely you work alongside someone who is affected and so, as this week (6-11 May) is Deaf Awareness Week, we’re shining a light on the communication challenges people with hearing loss can face as well as what we can do to be more inclusive communicators on site and beyond. Read on to find out more.

An excavator dropping waste into a skip on a construction site

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30 April 2025

Maximising resources to cut waste in construction

In 2022, the construction industry generated 63 million tonnes of construction and demolition (C&D) waste in England. While 59.4 million tonnes of this waste were recovered, it’s less certain how much was fully recycled.

What is clear is that there is substantial room for the industry to go further in relation to maximising resources and cutting waste. Take a look at this week’s blog to find out more about why this is crucial and what improvements can be made on site.

Image looking up at two building towers that incorporate vertical forests (trees and plants in between all floors). Beyond the towers is a blue sky with a few white clouds.

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22 April 2025

Vertical forests: Eco-buildings or greenwashing in disguise?

As cities around the world grapple with the twin pressures of population growth and environmental decline, architects and planners are turning to a novel solution: vertical forests. Integrating thousands of trees, shrubs and plants into their facades, these high-rise buildings bring the promise of cleaner air, cooler cities and a stronger connection with nature.

But while projects like Milan’s Bosco Verticale and Singapore’s Oasia Hotel Downtown dazzle with their leafy exteriors, some experts have questioned whether the benefits live up to the hype or if they’re simply architectural ‘greenwashing.’ Read on to learn more.

Close up image of a construction site gate with chains and padlocking as security

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15 April 2025

Stop trespassers on site: protecting people, property and projects

As inherently hazardous environments, unauthorised access on construction sites can lead to severe consequences – not just for the trespassers but also for workers and the broader community. Beyond the significant financial losses from theft and vandalism, trespassing incidents can also result in serious injuries or even fatalities.

Find out more about the impacts trespassers can have on a construction site and what you can do to prevent them in this week’s blog.

Young woman sitting at a desk with a laptop in front of her and surrounded by distractions like a phone, tablet, papers etc. She is squinting with one eye and has fingers in her ears.

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8 April 2025

How to maintain focus at work

In today’s digital age, where there’s a constant influx of notifications, emails and social media updates, maintaining focus at work has become increasingly challenging.

Studies have shown that, for screen-focused work, our average attention span dropped from two-and-a-half minutes in 2004 to just 47 seconds in 2021. This decline in focus not only affects our productivity but also impacts our overall job performance and satisfaction. Keep reading for some tips on how to reclaim your attention and enhance work efficiency.