Warehouse Demand Soars as AI Data and Hardware Centres Rise Across the UK. Machines Need Space, Just Like Us Humans.

The UK is seeing a surge in demand for industrial spaces, particularly warehouses, driven by the rapid expansion of AI data centres. With major tech companies like Google, Amazon, and Microsoft investing heavily in AI infrastructure, the need for high-power, cooling-capable industrial spaces has never been higher. 

In October 2024, U.S. tech firms committed £6.3 billion ($8.23 billion) to UK data centres to support the country’s ambition to become a global leader in AI. As a result, the demand for quality industrial properties, especially in regions like Cambridge and the Midlands, is increasing. 

Commercial List is a leading commercial property agent operating across the UK. 

According to the latest reports, the UK industrial sector saw a 7% rise in occupier demand in Q4 2024, reflecting growing interest in industrial spaces. Across England, the supply of industrial properties grew by 18% in 2024. Despite the increase in availability, vacancy rates are projected to decrease to 5.3% by the end of the year, further highlighting the strong demand.

Commercial List, a leading commercial property agency specialising in industrial leasing and sales, is poised to meet the demand. Operating across the UK, with a focus on the Midlands, Commercial List’s expertise in handling warehouses and large industrial spaces makes them a key player in the growing AI infrastructure market. 

The Midlands, known for its cost-effective industrial properties, has become a prime destination for businesses seeking expansive spaces, including AI data centres. With AI’s increasing expansion, the industrial property market is set to remain a focal point for investment across the UK.