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Infrastructure

AI data centre boom strains construction labour

·1 min read

Rising demand for AI infrastructure is tightening global construction capacity and deepening skilled labour shortages, according to Turner & Townsend’s latest Global Construction Market Intelligence report. Data centres have become the second most in-demand construction sector in the UK after defence, while residential development and commercial office development remain subdued, ranking ninth and seventh respectively.

Globally, data centres are the most constrained sector for contractor capacity, with more than 70% of 112 markets analysed reporting tightening or overstretched capacity. In the UK, shortages are especially acute in specialist trades, with 100% of respondents citing a lack of qualified M&E workers, a key requirement for tech-led projects.

Stephanie Marshall, managing director of real estate and cost management at T&T, said construction demand is becoming more uneven and concentrated in AI-driven sectors, while labour constraints, supply chain volatility and geopolitical risk are intensifying. London remains the most expensive UK location to build and ranks fifth globally, while Birmingham, Edinburgh and Glasgow are expected to see 4% inflation in 2026, above the 3.7% nationwide average.

Originally reported by building.co.ukRead the source →
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