UK data centres squeeze switchgear for builders

Rising demand from UK data centres is squeezing supplies of electrical switchgear. Commercial building projects are facing longer lead times, higher deposits and fewer competitive bids, according to Prism Power.

Prism Power, which supplies low- and medium-voltage equipment, is seeing manufacturers allocate more factory capacity to large data centre frameworks. That shift is affecting procurement for offices, mixed-use developments, logistics hubs and healthcare schemes.

Switchgear sits at the core of a building's electrical system, controlling, protecting and isolating electrical equipment. It has typically been procured late in the programme, once designs are mature, but Prism Power says that approach no longer matches market conditions.

Lead time squeeze

Demand has risen with the expansion of hyperscale cloud infrastructure and growth in AI workloads. Data centres require large volumes of electrical equipment and often place repeat orders, leaving commercial projects competing for the same manufacturing slots.

Adhum Carter Wolde-Lule, Director at Prism Power Group, said manufacturers are prioritising larger, more predictable packages.

"Manufacturers are simply behaving rationally. If you are allocating factory capacity and you have a 50MW data centre framework on one side and a standalone commercial building on the other, the decision is straightforward. Scale and certainty win. Commercial projects are now operating in a market where they are no longer the priority customer. We are seeing selective quoting, with some manufacturers choosing not to price lower value packages at all. Validity periods are shrinking. Deposits are increasing. High value or repeat projects are favoured, while one-off commercial schemes struggle to secure firm commitments."

Some commercial schemes now face lead times running to many months. Quote validity periods are shortening, and deposit requirements are rising as suppliers manage risk and production planning.

Programme risk

Many project programmes assume switchgear can be ordered late in the build, but Prism Power warns it has become a critical-path risk. Teams may need an earlier design freeze and earlier engagement with manufacturers.

Late procurement can trigger knock-on effects, including pressure on commissioning windows and temporary power arrangements. Prism Power also flagged redesign risk where available equipment does not match the original specification, and warned that cost certainty can worsen when programmes compress.

Compliance concerns

Prism Power also raised compliance and safety concerns when timelines are tight and product availability is limited. Under those conditions, teams can end up focusing on what is available rather than on what is engineered for the application.

The firm warned that this can increase reactive substitutions and rushed approvals, and may encourage consideration of non-standard configurations as options narrow. Electrical infrastructure underpins safety and resilience within a building.

Market distortion

Prism Power also pointed to pressure on SMEs and regional contractors. As manufacturers focus on large repeat buyers, firms reliant on one-off commercial schemes may be squeezed, prompting contractors to add risk premiums or decline to bid.

Wolde-Lule said fewer bids and higher contingencies are already appearing in commercial electrical packages.

"We are already seeing fewer competitive bids on commercial electrical packages and higher contingency allowances built into pricing. That ultimately impacts developers, investors and occupiers. At the same time, the industry is transitioning towards new generation, SF6 free medium voltage equipment. Environmentally this is absolutely the right direction, but product transitions require engineering familiarity, requalification and in some cases redesign."

He said multiple factors are converging across the supply chain.

"When you combine surging digital infrastructure demand, wider electrification, technology transition and finite manufacturing capacity, you do not have a short-term spike. You have sustained structural pressure."

Procurement shift

Prism Power said commercial developers and contractors should treat switchgear as a strategic procurement item. It recommended earlier contractor involvement and earlier engagement with manufacturers, with lead-time assumptions built into programmes from the outset. Two-stage procurement and other long-lead strategies are also becoming more common.

The firm also called for policy attention on manufacturing capacity, arguing that UK and European electrical manufacturing capability should be viewed as part of national infrastructure resilience, given parallel priorities across housing delivery, commercial development, electrification and digital infrastructure.

Prism Power said it is adjusting its own approach through earlier engagement and closer coordination with clients. Wolde-Lule added that the issue extends beyond individual contractors and suppliers.

"At Prism Power, we are adapting. We are engaging much earlier, designing smarter and working closely with clients so we don't have bottlenecks. But this is bigger than any one contractor or supplier. If we want to build faster, safer and more reliably in the UK, we need to address the issue that rarely makes headlines. Switchgear may not be glamorous, but without it nothing turns on."