Turner & Townsend’s latest tender price forecast warns that access to power has become a key battleground for construction, with demand surging and infrastructure projects facing long delays in securing connections.

National Grid estimates that the UK’s total electricity demand will rise by 50% in just 10 years – and double by 2050.

One of the biggest contributors is the explosion in new data centres, whose power-hungry servers drive everything from cloud storage to artificial intelligence.

By 2050, National Grid says Britain’s data demand alone will use nearly as much power as the entire UK industrial sector consumes today.

But the grid capacity crunch is already starting to bite in parts of the south.

T&T says long delays for grid connections are pushing up tender prices and derailing development plans.

In capacity hot spots like West London, Swindon, Milton Keynes, Oxfordshire and Cambridge, councils report property schemes being stalled by lack of local capacity.

The report warns that the delays are already being priced into bids as suppliers hedge against uncertainty.

T&T predicts building tender price inflation is set to creep up from 3.0% in 2025 to 3.5% next year. Infrastructure inflation will outstrip this at 4.5% this year, rising to 5.0% by 2028, driven in part by the connection squeeze.

The UK’s fragmented energy framework set-up means developers must apply for connections through one of 14 regional Distribution Network Operators. Waits of several years are now common.

Since 2024, applicants have had to show they have landowner backing via a Letter of Authority to reduce speculative bids. From this Spring, a major rule change kicked in switching connection priority from ‘first come, first served’ to ‘first ready, first connected’.

The aim is to reward shovel-ready projects, but it’s also ramped up the pressure on developers to get organised fast.

T&T is urging early action including opting for temporary low-capacity connections to prioritising brownfield sites with legacy power access or installing on-site generation.

Martin Sudweeks, UK managing director of cost management at T&T, said: “This surge in demand will only add to the intense competition between construction projects, presenting a risk that costs could rise as suppliers factor uncertainty into their tender prices.

“Successfully managing power access is now mission-critical to keeping costs stable and delivery on track.”