Investment in UK data centres reached a record £4.2 billion in the first quarter of 2026, driven by surging demand for hyperscale facilities to support artificial intelligence workloads. The figure represents more than double the total for the same period last year, according to research from CBRE.
The West London corridor — stretching from Slough through Heathrow to Hayes — remains the epicentre of UK data centre development, but new clusters are emerging in Manchester, Newcastle and Edinburgh as operators seek diverse locations with access to renewable energy and fibre connectivity.
For the commercial property sector, data centres represent both an opportunity and a challenge. The facilities command premium rents — typically £120-180 per sq ft for powered shell space — and offer long-term income security, with average lease lengths exceeding 15 years. However, they also compete aggressively for industrial land, particularly in constrained markets around major cities.
The UK government has designated data centres as Critical National Infrastructure, streamlining planning processes and providing greater certainty for developers. Industry body TechUK estimates that the UK will need an additional 1.5 GW of data centre capacity by 2030 to meet projected demand.
