Another week, another mega-data centre: what’s driving the boom?

In late September, outline planning was secured for a £1.3 billion AI data centre in Essex. The plans are vast: 27,000 m² of data halls, a 4,500 m² substation, new cabling infrastructure, and seven years of phased development. Beyond the construction, the real spend will be in the fit-out. Industry estimates suggest around £500 million in hardware, networking, and high-density cabling could be installed before completion.

And this is no longer unusual. Barely a week goes by without another announcement of a hyperscale data centre in the UK or Europe. From Teesworks in the North East to clusters around Dublin, Frankfurt, and Amsterdam, the data centre build rate has accelerated faster than ever before.

So what is driving this boom, and how is it reshaping the cabling and engineering industries that support it?

Why so many, why so fast?

The surge in data centre projects comes from a perfect storm of demand drivers:

  • Artificial Intelligence and compute hunger: Training and running large models requires entire halls of GPU clusters and high-performance networking.
  • Cloud adoption: Enterprises are still migrating workloads into AWS, Microsoft Azure, and Google Cloud, and demand has not peaked.
  • Latency and edge computing: New services like AR, VR, and autonomous systems require distributed but powerful hubs close to users.
  • Investor appetite: Data centres are now seen as critical infrastructure, attracting billions in capital from pension funds and global asset managers.
  • Government support: The UK has designated AI Growth Zones, and EU states are fast-tracking permits for strategic digital infrastructure.

The Essex project itself highlights these dynamics. It includes a nature reserve buffer of 34.5 acres to address community concerns, alongside a closed-loop water cooling system to reduce environmental impact. These are no longer just “warehouses for servers” but high-profile infrastructure builds designed to meet demanding digital and sustainability requirements.

The scale of the build

To put the Essex scheme in perspective:

  • Seven-year phasing: a long pipeline of jobs for contractors, subcontractors and suppliers.
  • Dedicated power infrastructure: its own substation and high-voltage connections into the national grid.
  • Hardware spend: likely exceeding £500 million on servers, storage, networking and structured cabling over the project lifetime.
  • Specialist systems: UPS, cooling, generators, fire suppression, containment, fibre backbones, and resilience measures for Tier-3 and Tier-4 standards.

Each of these elements requires large numbers of specialists, from cabling engineers and electricians to commissioning managers and project leaders.

A new career and industry pivot

Perhaps the most striking effect of the boom is the shift in people and companies moving into the sector. For decades, structured cabling and commercial contractors built their reputations in offices, universities, airports and retail roll-outs. Today, the future is in hyperscale and AI data centres.

We are seeing:

  • Structured cabling specialists retraining into fibre, containment and high-density patching designed for hyperscale loads.
  • Commercial contractors moving into Tier-3 and Tier-4 critical environment experience where uptime is non-negotiable.
  • Project managers who once ran retail or university builds rebranding as data centre delivery specialists, managing complex multi-phase programmes.
  • Electrical contractors diversifying into high-voltage and UPS systems, often delivered alongside structured cabling packages.
  • Large data cabling companies, once focused almost exclusively on industrial and commercial projects, are now building dedicated critical-infrastructure divisions to compete for hyperscale data centre tenders.

The ripple effect is significant. Skills once seen as niche, such as fibre splicing, containment installation, and testing and inspection of high-density cabling, are now in hot demand.

Opportunities and challenges

The boom has created vast opportunities for those in the supply chain, but also a new set of challenges:

  • Workforce shortages: demand for data cabling engineers, project managers and commissioning specialists far outstrips supply.
  • Training and standards: engineers need to upskill quickly to meet Tier-3 and Tier-4 standards with new health, safety and compliance regimes.
  • Environmental scrutiny: cooling methods, water usage and energy efficiency are now deal-breakers for planners and investors.
  • Power bottlenecks: without grid upgrades, many projects risk stalling or scaling back.
  • Heat reuse and sustainability: the industry is under pressure to capture and reuse waste heat rather than let it dissipate.

What it means for the future

For those in data cabling and structured cabling, this is a once-in-a-generation shift. The work has moved beyond traditional commercial installs into critical national infrastructure with budgets, risks and standards to match.

For clients and investors, the trend suggests that the UK and Europe will continue to see mega-data centre approvals almost weekly. The only real brake may come from power availability and planning resistance.

For now, the trajectory is clear: another week, another mega-data centre. With each new approval, the opportunities for engineers, contractors and cabling specialists continue to expand.

Final thought

The Essex scheme is just the latest example in a wave that shows no sign of slowing. With half a billion pounds in hardware fit-out alone and billions more in construction, these projects are becoming the new normal. For individuals and companies willing to pivot from commercial cabling to data centre specialism, the rewards are already here.

The question is not whether the boom will continue, but how the industry will adapt fast enough to keep pace.