BlackRock Invests £500M in UK Data Centres: Preparing for Future Demand
BlackRock Inc. is set to invest up to £500 million in the UK data centre market, focusing on underutilized assets to meet the growing demand for AI and cloud computing infrastructure.
BlackrockData CentersUk InvestmentAi InfrastructureReal EstateReal EstateSep 15, 2025
The asset manager has acquired a site in west London that will seed a new venture with data center operator Gravity Edge, according to a statement. The so-called Digital Gravity Partners venture will seek to buy existing data centers with underutilized capacity. BlackRock’s global co-head of real estate, Thomas Mueller-Borja, shared these details in an interview.
The world’s biggest investors are piling into data centers, betting that the rapid growth and adoption of AI will lead to a corresponding boom in demand for the infrastructure required to power it. This trend has prompted several of the world’s biggest alternative asset managers to aggressively pursue vast new facilities to meet the demands of hyper scalers like Amazon.com Inc.’s AWS, Microsoft Corp., and Alphabet Inc.’s Google.
However, electricity costs in the UK are among the highest in Europe, and the country’s power grid is struggling to keep up with demand. “We are trying to find existing assets that are underutilized but have power,” Mueller-Borja said. “We aren’t doing ground-up development for hyper scalers.”
The initial investment of more than £100 million is being made from BlackRock’s €1.2 billion Europe Property Fund VI, which the asset manager completed raising in July. Investing in smaller facilities servicing enterprise customers will also increase the audience of potential buyers to whom BlackRock can sell the upgraded properties, in contrast to the vast developments targeting hyper scalers that often require billions in capital expenditure.
“We are always really focused on exit liquidity,” said Paul Tebbit, BlackRock’s other co-head of real estate. “One of the attractive things about this strategy, given the lot sizes we are creating, we can see real estate funds or infrastructure funds being the end buyer.”
BlackRock boss Fink is among a handful of Wall Street titans and Silicon Valley executives joining Trump on a state visit to the UK this week, where they will unveil billions in cross-border investment. Sky News earlier reported on BlackRock’s plans. Bloomberg also covered the story.
Frequently Asked Questions
What is BlackRock's investment plan for UK data centers?
BlackRock plans to invest up to £500 million in the UK data center market, focusing on underutilized assets to meet the growing demand for AI and cloud computing infrastructure.
Why are data centers becoming a popular investment?
Data centers are becoming popular investments due to the rapid growth and adoption of AI, which is driving a corresponding boom in demand for the infrastructure required to power it.
What challenges does the UK face in terms of data center infrastructure?
The UK faces high electricity costs and a struggling power grid, which can make it challenging to support the growing demand for data center infrastructure.
Who is Digital Gravity Partners and what is their role in BlackRock's investment?
Digital Gravity Partners is a new venture between BlackRock and data center operator Gravity Edge. Their role is to buy existing data centers with underutilized capacity and upgrade them to meet market demands.
How does BlackRock plan to ensure liquidity in their data center investments?
BlackRock plans to invest in smaller facilities servicing enterprise customers, which will increase the audience of potential buyers, including real estate funds and infrastructure funds.
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