According to the latest Barbour ABI report, Ventilation and Air Conditioning Market 2025 – 2029, data centres now represent one of the fastest-growing segments in the non-residential VAC market. These mission-critical facilities, which can devote up to 40% of their total energy load to cooling, are fuelling demand for advanced, energy-efficient systems that align with the UK’s increasingly stringent carbon and efficiency standards.
Regulatory momentum reshapes market priorities
Recent updates to Building Regulations Parts F, L, and O - alongside the forthcoming Future Homes Standard - have elevated ventilation and cooling to core components of building design and compliance. As buildings become more airtight to meet energy performance targets, effective air exchange, filtration, and temperature control are no longer optional; they are essential for occupant wellbeing and regulatory adherence.
This regulatory momentum is also reshaping the data centre landscape. Operators are investing in hybrid and free-cooling chillers, precision air handling units (AHUs), and liquid cooling systems that incorporate heat recovery and variable-speed controls. These technologies not only ensure uptime but also support net zero commitments and reduce lifecycle costs.
From Compliance to Competitive Advantage
Rather than acting as a constraint, regulation is becoming a catalyst for innovation. Compliance now serves as a value proposition, pushing manufacturers and specifiers toward high-performance systems that blend comfort, health, and sustainability. In data centres, this includes the adoption of low-GWP refrigerants, high-efficiency fan technologies, and real-time environmental monitoring systems.
This alignment of policy and technology is also opening doors for UK-based manufacturers and suppliers to expand into European markets, where similar carbon and efficiency frameworks are being implemented.
Air quality meets energy strategy
Barbour ABI’s analysis highlights a growing convergence between air quality and energy performance. In data centres, optimal airflow and filtration are now integral not only to hardware protection but also to environmental credentials. Innovations in demand-controlled ventilation, high-grade filtration, and thermal energy reuse are bridging the gap between operational performance and sustainability.
Industry outlook
Anne Williams, research manager at Barbour ABI said: “The UK ventilation and air conditioning market continues to show steady resilience despite a subdued construction environment. Growth in 2025 is being sustained by tightening building regulations, the shift toward low-carbon technologies, and the increasing focus on healthy indoor environments. While the residential sector remains constrained, demand from non-residential projects - particularly in data centres, healthcare, and education - is helping to maintain market stability. Over the medium term, the Future Homes Standard and wider sustainability targets are expected to further strengthen system uptake across the built environment.”