Surge ahead for energy infrastructure work

The growth in artificial intelligence is boosting the development of data centres and leading to a surge in energy infrastructure work.

Data centres require vast energy resources, and this is set to increase. At present, 3% of the world’s annual energy consumption, an estimated 416 TWh, is taken up by data centres.

This is forecast to increase to 10% by 2030 and solutions to meet this demand are generating work opportunities in the UK construction industry.

Glenigan economics director Allan Wilén says: “National Grid’s £24.8 billion investment program for the transmission network will accommodate new generating capacity and rising electricity demand.”

Cross channel link

One of the biggest energy infrastructure schemes in the pipeline is a proposed £1.2 billion high voltage direct current marine and underground electric power transmission link from Lovedean near Portsmouth to Le Havre in France (Project ID: 11046608).

National Grid is working with Réseau de Transport d’Electricité and Eleclink on the AQUIND Interconnector, which will have 2 GW of capacity and meet about 5% of the UK’s energy needs by powering up to five million homes.

The Ministry of Defence is currently considering the security implications of the plans, which have popular support with a poll this summer by Savanta showing 69% of residents in the Portsmouth area are in favour.

Balfour Beatty and Prysmian have been lined up as main contractors according to Glenigan’s construction industry research, which has also identified several other key consultants and suppliers on the scheme.

Top energy clients

National Grid is one of the UK construction industry’s biggest clients with awards totalling £1.6 billion in the 12 months to August 2024 according to Glenigan’s market intelligence.

This ranks National Grid in fifth position in Glenigan’s rankings of the industry’s Top 50 clients. National Grid is also working on a swathe of other energy schemes that are at various stages of the procurement pipeline.

Proposals for the £300 million Cross County Power Tunnel in Kent are still awaiting planning permission (Project ID: 24033221), but contractor J Murphy should start work before the end of this year on the £400 million Yorkshire GREEN plan Project ID: 21117882). This scheme will provide 7-km of new overhead lines plus a number of cable sealing end compounds, underground cables and two new sub stations near Overton and Monk Fryston.

SSE spending

SSE is also ranked among the industry’s top clients in the second spot after awarding £2.4 billion worth of work in the 12 months to August 2024 according to Glenigan’s construction industry research.

SSE also has several other major schemes in the pipeline. These include the £235.3 million Slough Multifuel Project, which will expand an existing multifuel combined heat and power electricity generating station from 50 megawatts of gross output to up to 60 MW (Project ID: 22068878).

Other major SSE developments include the £2.4 billion Coire Glas Hydro Scheme, which will be the UK’s first large-scale pumped storage project for more than 40 years and has a potential capacity of 1,500 MW (Project ID: 09209142). A 1.2-km exploratory tunnel was completed this summer, and the main works could begin next summer.

Bright future

With the demand for energy set to increase through increased use of AI and more data centre development, the energy industry should be a major source of opportunities in the years ahead.