The data centre segment continues to drive growth in the demand for steel in various countries, including the UK, US, and many emerging markets. In fact, real estate giant CBRE has a very positive outlook for 2026. We want to have a closer look here, then if you need to order ERW steel tubes in the West Midlands, you can rely on us.
Forecasts
CBRE’s forecast is we could see another bumper year for data centre creation in the UK, particularly in London. While it won’t reach the height of 2025’s record total, it will still be the second highest to date. Perhaps more importantly, the forecast is take-up will increase, outpacing supply for the fifth year in a row. Ultimately, the UK will likely remain the biggest market in Europe.
Interestingly, one of the forecasts by CBRE is we’ll see an expansion beyond current clusters, including in London. Generally data centres are built close together in cloud availability zones. However, limits on power supplies can restrict the opportunity for new developments. So, there is more attention on locations near to AZs, such as North London, the Docklands, and neighbouring counties like Essex.
Significantly, the new draft London Plan includes a section about data centres for the first time ever. This acknowledges their importance. It explores key things such as advising local authorities to identify suitable locations and include them in their own planning frameworks. If there are no viable locations, it encourages collaboration with neighbouring authorities or identifying potential Grey Belt land or sites in the Green Belt on the edge of BLGs (Broad Location of Growth). If the plan is approved, it would have a big impact on new developments in the coming decades.
The impact on the steel industry
As the top provider of ERW steel tubes in the West Midlands, we keep an eye on the various factors that influence the wider industry. Data centres are definitely a major driver.
The key thing to keep in mind is data centres need a huge amount of steel for the structures themselves. They are generally simple metal frameworks. This provides several advantages, including modular construction and easy scalability, faster build times, energy efficiency, and cost advantages. Plus, steel is a great choice for more advanced facilities, ensuring the structure can support the higher floor loadings for heavier equipment.
It isn’t just the buildings that rely on steel though. Data centres require a huge amount of power. So, demand increases for energy generation. Steel is necessary here for all kinds of applications.
To add to this even more, data centres have complex cooling demands to protect equipment and maintain performance. As a result, they often need huge amounts of water. Steel can be essential here too.
The best ERW steel tubes in the West Midlands
Steel is a foundation industry, one that many others are reliant on. As a result, it is incredibly important. It’s great to see developments driving growth, including data centres.
If you have a project in mind and want to order ERW steel tubes in the West Midlands, you can rely on us. We’re a local business with a great reputation. Notably, we have a large range of tubing and provide a fast turnaround for orders, even large ones. So, get in touch today.
