Construction Disrupted Episode 99 - 39bn reasons to learn from mistakes (21.01.26)

We start by exploring the industry’s high note as 2025 wraps up, which may go some way to explaining the £39 billion worth of projects driving growth in 2026. There is a word of caution, though, for the government’s ambitious Northern Powerhouse Rail plan, and we wrap it all up with how innovations like AI and robotics are reshaping the sector (again)! Let's go:

Construction Ends 2025 on High as Analysts Predict ‘Structural Shift’ Due to Data Centre Demand

As 2025 comes to a close, the construction industry is poised for a significant shift, driven by the growing demand for data centres and other infrastructure projects. Analysts predict a "structural shift" in the sector, with data centres becoming a major focus due to the increasing reliance on digital technologies. This trend is expected to drive substantial growth and investment in the industry.

Looking ahead to 2026, Glenigan’s market analysis highlights the Top 100 construction projects set to generate £39 billion worth of work. Civil engineering projects will lead the charge, contributing £23.8 billion across 29 major initiatives. The largest project is the £10.2 billion Lower Thames Crossing in Kent, which includes tunnels and approaches. Other significant projects include the A5 Western Transport Corridor in Northern Ireland (£1.7 billion) and Network Rail’s £1 billion Project Reach for trackside fibre optic cable installation in London.

The office and commercial sector is also rebounding, with 23 projects valued at £6.3 billion, including the £750 million Bidder Street Data Centre in East London and a £700 million British Library extension. The housing sector is set to see 37 projects worth £6.9 billion, with private residential developments leading the way. The largest housing project is a £577 million scheme at Marsh Wall in London.

With projects spanning 10 different sectors, the construction industry is gearing up for a promising year in 2026, with better times ahead for all areas of the industry.

‘Vital that Government Learns Lessons from HS2’: Reaction to Northern Powerhouse Rail Plan

The UK government has announced a £45 billion commitment to the Northern Powerhouse Rail (NPR) project, aiming to transform connectivity across Northern England. The ambitious plan includes a new Birmingham–Manchester rail line and improved east-west links between cities such as Liverpool, Manchester, Leeds, and Newcastle. The project is expected to boost economic growth, create jobs, and improve transport infrastructure in the region.

However, industry leaders stress the importance of learning from the challenges faced during the HS2 project. Key lessons include the need for clear timelines, defined project purposes, and robust funding structures. The Institution of Civil Engineers (ICE) and other stakeholders emphasise the importance of early planning, clear leadership, and stable pipelines to ensure the success of NPR.

The project is set to begin with £1.1 billion allocated for planning, design, and development work during the current Spending Review period. Construction is expected to start in the 2030s, with the project being delivered in phases. Industry leaders are calling for detailed plans,...