COMMENT Could data centre demand plug the skills gap?
By Paul Mongan, engineering manager at critical power solutions provider, Davenham Switchgear.
T
he STEM sector is suffering from a skills drought, potentially slowing UK growth and innovation. Earlier this year, the Institution of Mechanical Engineers warned that the industry is on track for an ‘NHS-like workforce crisis’, with an annual shortfall of up to 59,000 engineers.
Businesses back up the institution’s concern, too. In a recent survey, manufacturers cited their top three barriers to growth as people-related: a shortage of and poor retention of those they do hire. In fact, almost all (97.5 per cent) agreed that hiring and retaining skilled workers is one of today.
Meanwhile, interest in STEM is on the decline - particularly among the younger generations - and opportunities to retrain staggering 94 per cent of workers will need reskilling by 2030. Not only are we seeing a reduction in new talent, this lack of upskilling reduces the career pathways on offer for mature learners and those considering a career change.
The gender gap is yet another factor, with women making up less than a third (29 per cent) of the STEM workforce. At the current rate of progress, equal representation isn’t expected in the sector until 2070. Without targeted efforts to include women, the industry risks missing out half the population and, as a result, it risks overlooking a valuable source of new voices and talent. This skills shortage isn’t just a business problem. It’s quickly becoming a national economic issue; its impact on business productivity and growth is estimated to cost the UK economy some £1.5 billion annually. It’s clear from the statistics above that the skills gap is likely to persist without further action. The question is, what can the industry do to plug demand and reinvent itself for the next generation of engineers?
Big investment driving new interest Emerging sectors within the STEM industry could hold the key to generating new interest. We’ve already seen this work
Securing stem’s future:
successfully with the demand for more ‘green’ technologies leading to a surge of skilled jobs in the environmental sector. And while things like job stability are a major factor for jobseekers, purpose is another strong motivator for today’s workforce. Increasingly, people are chasing roles with a meaningful impact; jobs that make a real change to people’s everyday lives. Fortunately, the data centre market is well- positioned to tick all of these boxes. recognised as ‘critical national infrastructure’, putting them on par with other essential services such as water and emergency services. This new status highlights the important role that data centres play in our everyday lives; powering vital operations for UK businesses across to name a few. Government backing further sector, meaning greater long-term job security and opportunities.
And the sector’s only set to grow. The ‘GenAI boom’ is a major factor behind the rising demand for data centre technology, and it’s showing no signs of slowing down. In the latest spending review, Chancellor Rachel Reeves committed £2 billion to AI as the Government outlined its vision to use the
6 JULY/AUGUST 2025 | ELECTRONICS FOR ENGINEERS
tech to modernise key public services such as the NHS. It’s expected that the money will fund “at least a 20-fold expansion of the UK’s AI research resource”, including new collaborations between industry and academia. That means new courses and fellowships to teach the AI-ready workforce of tomorrow, and a whole new wave of interest and opportunities within the sector.
The UK boasts a world-class education system, with recent global university rankings published by QS including four UK universities in the top ten. Employers should be working closely with these universities to help build an awareness of what careers in the sector might look like, whether through speaker events, insight days or placement opportunities.
But it’s not all about degrees. Vocational training and practical experience are just as important. Luckily, we’re seeing more positive signs here with apprenticeships on the rise, as well as the introduction of we’re hoping to explore later this year. Plus, more and more manufacturers are taking on the responsibility of training up their staff, opening up pathways for people to retrain and develop within their careers.
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