UKREiiF panel highlights viability challenges for evolving UK data centre sector

Industry leaders speaking at a UKREiiF 2026 panel discussion hosted by Winvic Construction warned that the future viability of UK data centre development will increasingly depend on planning certainty, public acceptability, skills availability and collaborative delivery models — not simply access to power.

The session, titled Beyond Power: What Determines Data Centre Viability?, explored how the rapid expansion of AI, cloud infrastructure and digital demand is reshaping the challenges facing the sector.

Chaired by Karen Fletcher, Editor of The SectorScope, the discussion focused on how the industry is moving from questions of “technical viability” towards what panellists described as “investable viability”, where financing confidence, delivery certainty and infrastructure readiness are becoming equally important factors.

The panel brought together representatives from across the data centre ecosystem, including CyrusOne, SEGRO, Ridge and Partners, Rider Levett Bucknall and Winvic Construction.

A recurring theme throughout the discussion was the growing importance of public understanding and local engagement as data centres become increasingly prominent within planning debates. While the sector is now widely recognised as critical national infrastructure, speakers noted that concerns around energy consumption, land use, visual impact and local benefit are becoming more influential in planning outcomes.

Panellists also highlighted the increasing role of planning certainty in attracting investment, particularly as institutional capital and international investors place greater emphasis on programme confidence, transparency and long-term operational resilience.

Skills shortages were identified as another emerging pressure point, especially around specialist MEP delivery, commissioning expertise and operational workforce requirements as project pipelines continue to expand across the UK market.

The discussion also explored how procurement and delivery models are evolving, with greater emphasis now being placed on integrated project teams, earlier supply chain engagement and collaborative risk management to improve programme certainty and reduce delivery risk.

A key conclusion emerging from the session was that future data centre growth will require far greater alignment across planning, policy, financing, infrastructure and delivery if the UK is to support long-term expansion at scale.