The UK construction sector is experiencing strong momentum, with data centre projects leading the charge alongside hotel, leisure, and utilities developments, boosted by regional demand, major schemes, and government investment.
Data centre construction projects valued up to £100 million are set to surge 13 per cent within the office sector in 2026, hotel and leisure projects are expected to rise five per cent this year and 12 per cent in 2027, while energy-related civil engineering starts doubled, up 101 per cent year-on-year.
The rapid expansion of AI, cloud, and digital infrastructure is fuelling the surge, with 29 data centre schemes in London alone already holding planning permission and expected to start this year.
Major developments in London include the £8 billion Amazon web services build, the £750 million Bidder Street project, and the £400 million G Park Docklands development, while two of the biggest schemes come from outside the capital – the £5 billion CWL41 in Bridgend and the £3.4 billion AI Pathfinder in the East Midlands.
The figures, which come from Glenigan data, highlight trends in the sector, as noted by the market analysts’ economics director Allan Wilén.
“The development of data centres is expected to be a growing segment within the sector,” he said.
“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.”
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Hotel and leisure construction is also climbing, particularly in northern regions.
Planning approvals under £100 million rose 61 per cent in Scotland, 79 per cent in the North East, and 95 per cent in Yorkshire & Humber in the three months to February 2026.
The pipeline includes 145 schemes, from a £1.4 million Premier Inn extension in Crewe to the £350 million Sage Arena in Gateshead, with frameworks potentially generating up to £6 billion of work over the next decade.
Meanwhile, utilities construction remains robust, with more than 1,500 projects planned for 2026, including reservoir works under AMP8 and major energy schemes such as the £9 billion Dogger Bank Offshore Wind Farm, £38 billion Sizewell C, and £40 billion Hinkley Point C.
Wilén added: “Government programmes, including the Clean Energy Industrial Plan, which aims to double investment in clean energy to over £30 billion a year by 2035, further reinforce commitments to renewable energy initiatives.”
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