AI boom puts pressure on Europe’s data centre construction capacity
The rapid growth of AI infrastructure across Europe is driving soaring demand for data centres, putting further pressure on an already tight market for construction workers. That is according to a report from Turner & Townsend.
As part of its AI agenda, the EU has set a target to triple data centre capacity within five to seven years. The push reflects rapidly growing demand for computing capacity driven by AI, cloud services and other digital technologies.
That ambition is increasingly being reflected in construction portfolios, with data centres now the most in-demand construction sector in the European Union, according to Turner & Townsend research.
In the firm’s assessment, data centres rose from second place last year to take the top spot, while last year’s top-ranked segment, residential housing, fell to third. Other high-demand segments include office fit-outs and industrial and logistics warehouses, the latter rising sharply from seventh place in 2025 to third in this year’s sector rankings.
However, booming demand for data centres is also creating significant delivery challenges. “Data centres are now the most constrained sector globally when it comes to contractor capacity, with over 70% of the 112 markets analysed reporting tightening or overstretched capacity,” said Turner & Townsend in its report.
Established data centre hubs including Berlin, Dublin, Geneva, Zurich and Amsterdam are all reporting increasing competition for builders and contractors, according to Turner & Townsend.
Skills shortages are particularly acute in specialist mechanical, electrical and plumbing trades. 87% of construction industry respondents in Europe cited shortages of qualified mechanical, electrical and plumbing workers, who are essential to data centre projects.
“In Europe, there is a very real risk that growth in the pool of skilled labour needed to build data centres won’t keep up with demand,” said Martin Londra, Head of Real Estate and Major Programmes for Europe at Turner & Townsend.
