Telehouse South data center enters operational phase as Skanska UK continues delivering critical upgrades at a major London data center facility, supporting live operations at Telehouse South in 2026. Moreover, the project strengthens digital infrastructure resilience within one of Europe’s busiest connectivity hubs in Docklands. In addition, Skanska upgraded electrical systems, cooling infrastructure, lifts, and essential building services while maintaining uninterrupted operations.
Furthermore, the contractor implemented phased construction methods to ensure continuous uptime for hyperscale and cloud clients. Consequently, the facility now supports higher-density computing workloads driven by rising artificial intelligence demand. However, operators continue ongoing lifecycle enhancements to meet expanding digital capacity requirements.
Skanska data center upgrade reflects Europe’s shift toward AI-driven infrastructure resilience
The Skanska data center upgrade demonstrates how legacy facilities now evolve into AI-ready infrastructure assets across Europe. Moreover, operators increasingly prioritize retrofit programs instead of Greenfield construction due to urban power and land constraints.
In addition, live-environment engineering techniques allow continuous service delivery during complex infrastructure upgrades. Furthermore, London remains a strategic node for global connectivity and enterprise cloud operations. Consequently, demand for high-performance electrical and cooling systems continues to rise across the UK data center market. Therefore, the Skanska project represents a benchmark for operational transformation in active digital facilities.
The Skanska data center upgrade connects directly to Europe’s broader shift toward large-scale AI infrastructure development. Moreover, the project reflects the same engineering ecosystem required for emerging hyperscale AI facilities across the continent. In addition, this capability supports upcoming megaprojects such as the SoftBank data center construction program in France.
Scope of the Project
The development is part of a significant modification of Telehouse South, the company’s largest data facility in Docklands. The project encompasses the mechanical, electrical, and public health engineering fit-out of two of the property’s floors. The work includes:
- Installation of air conditioning and ventilation systems.
- Fitting of electrical equipment and systems.
- Construction of a new roof gantry for plant equipment.
- Installation of new lifts.
- Cladding restoration and redesign of building security entrances.
- Construction of a new gatehouse and fence.
Also read: Plans underway for construction of Microsoft data centre in Madrid, Spain
Project Significance
This project is a vital component of a major upgrade to Telehouse South, enhancing its operational capabilities and ensuring it meets the highest standards of security and sustainability.
Skanska UK’s managing director, Dan Williams, expressed excitement about working with Telehouse on this project, highlighting their extensive experience in delivering various data centre fit-outs. The contract awarded to Skanska is one of the largest in terms of financial value that the company has undertaken.
It’s worth noting that Skanska was also previously involved in the project, delivering an early works package under a preconstruction services agreement.
Project Timeline
The main contract work on the data centre upgrade is expected to be completed by June 2024.
Telehouse Europe’s managing director, Takayo Takamuro, emphasized the high standards of security, sustainability, and operational excellence that the ongoing development of this state-of-the-art data centre will deliver to its customers.
Skanska UK’s substantial €183 million contract with Telehouse for the data centre fit-out in Docklands represents a significant project in terms of value and is an integral part of the upgrade to Telehouse’s largest data facility. The project aims to enhance the facility’s capabilities and align it with the highest industry standards. Completion is expected by June 2024.
Project Fact Sheet
Project Name: Telehouse South Data Centre Upgrade (Skanska UK)
Location: Docklands, London, United Kingdom
Status (2026): Operational facility with ongoing lifecycle upgrades completed in phases
Client: Telehouse Europe
Contractor: Skanska UK
Project Type: Live data center refurbishment and infrastructure upgrade
Contract Value: £158 million (approx. €183 million)
Scope of Works: Electrical systems, cooling, lifts, security, and building services upgrades
Operational Mode: Continuous live environment (zero-downtime execution strategy)
Strategic Function: Capacity expansion for cloud and AI-ready workloads
Market Role: Critical European digital infrastructure hub
Project Team
Main Contractor: Skanska UK
Client / Operator: Telehouse Europe
Infrastructure Division: Skanska Buildings & MEP Engineering Units
Facility Location Owner: Docklands Data Centre Campus, London
Engineering Focus: Electrical, mechanical, HVAC, and systems integration
Operational Partners: Telehouse network and data services teams
Industry Sector: Digital infrastructure / hyperscale data center operations
Regulatory Framework: UK critical national infrastructure compliance
Construction Strategy: Phased live-environment
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