Data centre demand expected to surge in 2026
Cushman & Wakefield expects data centres outside London to become key growth hubs in regions like Yorkshire, as AI expansion drives demand for high-performance infrastructure.
Speaking on trends set to shape the real estate market in 2026, Daryl Perry, head of UK research and insight at the firm said: “There’s obviously a huge upside for this requirement for AI infrastructure, and that’s benefiting commercial real estate in a large way.”
Traditionally, London and the M25 corridor have hosted around 60% of the nation’s data centre capacity.
However, Perry noted that technological advancements are changing the landscape: “The global economy has held up pretty well, and technological evolution is creating new requirements for data centres outside the traditional core,” he said, citing sites such as Harworth’s Skelton Grange and the Drax site at Selby as examples of emerging hubs.
While the growth opportunity is substantial, Perry warned that developers and investors must navigate challenges including grid constraints, rapid technological evolution, and the concentration of risk in special purpose vehicles: “It’s about delivering, and understanding where that risk is being held going forward,” he said.
Regions such as Yorkshire could see significant benefits from this trend.
Perry highlighted the potential for local growth, noting that the region “represents a huge opportunity… to attract capital and innovative individuals and businesses,” particularly in AI-driven sectors.
A prime example is the Skelton Grange site in Leeds, with Joanne Neville, director and head of planning at Harworth, noting the unique aspect of having a large former power station on the edge of a growing city.
She confirmed the developer is positioning itself to capitalise on the growth of data centres and other tech-driven sectors, building on its extensive industrial and logistics portfolio.
She said: “For priorities in 2026 it is business as usual. We’re continuing to pivot our portfolio to 85% industrial logistics. Sat here today we’re about 70, 75% industrial logistics…
“We’ve spent a lot of time understanding constraints on sites that we’ve got – utilities, power, particularly for some of these power-hungry industries – and exploring where they can go.”
