12 June 2025

The energy gap and power constraints: outlook for high-demand sectors - Europe

Our latest Construction Market Insights report examines how energy constraints are affecting projects across sectors, such as data centres, high-tech industrial, life sciences, and commercial.

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Richard Joyce
Managing Director – Europe
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Linesight's Construction Market Insights report for Europe provides a comprehensive overview of the construction industry across key countries, including Belgium, Denmark, Finland, France, Germany, Ireland, Israel, Italy, the Netherlands, Norway, Spain, and the United Kingdom.

The report features a macroeconomic overview, industry trends, commodity price movements, a supply chain outlook, sector-specific insights, and a special focus on how power constraints are influencing project delivery.

Want a glimpse of what’s inside? Explore the highlights below and see why this report is essential reading. 

Powering construction’s next chapter

As energy constraints intensify, power has emerged as a defining force in shaping construction priorities, timelines, and investment strategies. This report explores how power is influencing every stage of project delivery, from planning and procurement to execution, across Europe’s most critical and energy-dependent sectors.

Click the button below to access the full report. 

Core market indicators

Economic growth in Europe for 2025 is forecast to face significant challenges amid a complex global trading environment marked by trade tensions, policy uncertainty, and shifting monetary dynamics.

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While skilled‑labour shortages continue to slow project delivery, energy prices remain elevated, keeping the prices high for materials such as cement and bricks.

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Construction commodities play a crucial role in the global economy, and their prices are subject to fluctuations due to various factors which are outlined in our report.

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Sectors in focus

An overview of the sectors shaping Europe’s construction landscape through innovation, investment, and evolving demand.

Data Centres

The increasing demand for cloud services, growth of data-intensive applications such as AI and the need for reliable and secure data storage are driving factors in the expansion of the data centre market in the UK and across Europe.​

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Life Sciences

Life Sciences companies are leveraging existing manufacturing sites to expedite market entry and adapt quickly to demands, while AI and power availability are becoming critical for innovation and efficiency in the life sciences sector.

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High-tech Industrial (semiconductor and batteries)

Despite constraints, Europe offers clear strengths in its business environment, including a highly technical skilled workforce, strong transparent ecosystems, robust infrastructure and a commitment to sustainability goals.

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Commercial

Despite constraints, Europe offers clear strengths in its business environment, including a highly technical skilled workforce, strong transparent ecosystems, robust infrastructure and a commitment to sustainability goals.

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“Europe will see a modest recovery in construction activity in 2025, with many countries returning to growth. However, geopolitical tensions could lead to instability in global trade, making near term prospects more unpredictable.”
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Richard Joyce
Managing Director, Europe
In Linesight's CMI reports, we cover macroeconomic factors impacting the construction industry, provide an industry overview including key indicators, and explore four key sectors - Data Centres, Life Sciences, High-tech Industrial and Commercial. Furthermore, this edition is focusing on power as a critical enabler for mission critical and strategic sectors for the construction industry.
Data for the CMI reports comes from a range of both primary and secondary sources. In addition to primary research conducted with stakeholders in the value chain, sources include GlobalData’s Construction Intelligence Center (CIC), the World Bank, IMF and OECD, as well as country-specific national statistics offices, such as the U.S. Bureau of Economic Analysis, Bureau of Labor Statistics, and also industry-specific associations and publications. More information on our methodology is available at the back of the report.
CMI refers to Linesight's Construction Market Insights reports, which provide in-depth analysis of the global construction industry, focusing on specific trends, sectors and regions.
These reports cover Europe, Asia-Pacific and the Gulf Cooperation Council, and the Americas.
Linesight's CMI reports help clients and industry professionals to understand the challenges and opportunities within the construction industry, enabling them to make informed strategic decisions.
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