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Let’s think digitally to solve the UK’s infrastructure challenge

Karen Thompson
Karen Thompson
Feb 10, 2025

Digital sensors, systems and technologies can show us better ways to design and build the infrastructure Britain needs, more quickly, more cost effectively and more sustainably

This article was originally published on the FT: https://www.ft.com/partnercontent/capgemini/lets-think-digitally-to-solve-the-uks-infrastructure-challenge.html*

We can all see that the renewal of Britain’s water and electricity infrastructure for the 21st century is a vast, urgent and hugely expensive challenge. In recent years, several major UK infrastructure projects have illustrated the extent of it.

The new National Infrastructure and Service Transformation Authority (NISTA), announced by the government on 10 October, is a welcome effort to tackle some of the many causes of delays and budget increases. But we also need a radical new approach to developing and implementing projects – one that adopts a digital-native, data first strategy.

Imagine a water and sewage company facing surging demand, aging sewers, more frequent storms and river pollution events, and ballooning debts. Let’s call it Anyco. The board is under huge pressure to deliver more potable water to even higher standards, cleaner rivers and curtail flooding. The traditional solution would be pouring concrete, building larger networks, enhancing the capacity of existing assets, putting more and more sensors into the environment… It would be hugely expensive, carbon intensive, environmentally disruptive and would damage our biodiversity to further impose human order on nature.

But in the 21st century it doesn’t have to be that way. Suppose we had the data to model what is happening across the entire river basin. With minimal sensors and an integrated open-source data model which drives shared understanding across all parties involved and sophisticated modelling, we could consider alternatives to the more traditional ways of monitoring quality. Moreover, being able to track the river from source to sea, across every water company’s area, allows for radical new ways to tackle the issue like paying polluters to not pollute, or farmers to plant trees to reduce runoff – addressing the fundamental issues rather than the way disfunction is manifested today.

So, what should industry do?

Firstly, overcome the problem of archaic systems. The capital infrastructure sector – particularly in energy transformation and utilities – must rapidly replace outdated systems. Adopting new intelligent asset capability and processing capacity will enable companies to see what is happening across their networks in real-time, and react.

Secondly, adopt a digital-first mindset. Traditional construction companies have embraced digital tools for designing and managing projects and managing their supply chain. But to be truly digital-first, we need a digitalised process that begins with the question: ‘what’s the problem?’ and extends into every corner of operations to manage solutions that accommodate our evolving weather and climate minute by minute. A digital mindset should be part of the DNA, not just as a set of tools, that are ever changing as technology advances.

“We live in a time of change, and our infrastructure needs to be able to adapt to unforeseen developments”

Thirdly, be more focused on sustainable solutions that have the capacity and flexibility to adapt to a less predictable climate and evolving demand, whether it be for energy, water, or wastewater treatment. These could be something akin to a demand flexibility – gamifying (and monetising) the attraction for customers to change their behaviours using digital technology as the driver. Or using AI and open-source data to predict weather patterns and the required action as opposed to being “On” all the time. We live in a time of change, and our infrastructure needs to be able to adapt to unforeseen developments.

Fourthly, create standardised solutions that work in all kinds of situations. In an increasingly data-rich environment, we must be able to learn from what goes well – and less well – in one mega-project and then transfer the lessons to the next. Those lessons might be learned during the conception, design and implementation – but also during the planning process, and need to be embedded rather than a “start fresh” every time mentality.

And finally, there’s a fifth and fundamental change that I think essential. We need a change of culture. Building infrastructure for the 21st century is no longer just about calculations, concrete and steel. It’s about imagining solutions to society’s problems, and foreseeing challenges to come.

Make no mistake, the scale of investment needed is enormous. In July, Ofwat, the regulator of the water industry in England and Wales, proposed authorising an £88 billion programme of work designed to address environmental, supply and customer service shortcomings. The five-year programme beginning in 2025 will likely push up the average household bill by £19 a year.

That’s a third less than the companies wanted. But without changing the way we tackle this issue, without creating healthy tension between construction partners and digital partners how can we deliver more for less, at speed and without repeating past mistakes? Doing what we have always done with a few more digital tools applied sporadically throughout the supply chain, isn’t going to cut it.

Similar issues arise in electricity generation and supply, where the saga of new nuclear generator construction exemplifies a decision-making system that is no longer fit for purpose.

Data-gathering, digitalisation, and cultural change need to be foundational to Britain’s urgent infrastructure transformation. Only by changing the way we think, and adopting digital not as merely tooling but as a way of working, embedded into the heart of processes and the very DNA of construction, can we truly understand the issues. And only then can we achieve the best solutions – for the environment, for engineering firms, for customers, and for the generations who will rely upon the infrastructure we build in the decades to come.

Meet our expert

Karen Thompson

Karen Thompson

EVP | Head of Energy Transition and Utilities
Karen is the Head of Energy and Utilities for Capgemini Invent UK, with responsibility across Water, Nuclear, Energy retail, Energy Networks and New Energy clients. Karen is a Biochemist by training and has 14 years’ experience working in industry at a senior level with a background covering water and wastewater operations, telemetry, field force and retail. Karen has over 15 years’ consulting experience, leading major transformation programmes in the Utilities sector. Karen specialises in delivering consulting and technology capabilities with a business led focus to deliver a step change in capability with her clients. Her work on digital programme has netted 15 national and international awards for her clients including being recognised for digital transformation at an international level.