BlackRock to Invest £500M in UK Data Centres Amid Trump's State Visit
BlackRock Inc. is set to invest up to £500 million in the UK's data centre market, focusing on underutilized assets. This move comes as CEO Larry Fink joins President Trump on his state visit to the UK.
BlackrockData CentresUkInvestmentReal EstateReal Estate NewsSep 15, 2025
The asset manager has acquired a site in west London that will seed a new venture with data centre operator Gravity Edge, according to a statement. The so-called Digital Gravity Partners venture will seek to buy existing data centres with underutilized capacity, BlackRock’s global co-head of real estate Thomas Mueller-Borja said in an interview.
The world’s biggest investors are piling into data centres, betting that the rapid growth and adoption of AI will lead to a corresponding boom in demand for the infrastructure required to power it. That’s prompted several of the world’s biggest alternative asset managers to aggressively pursue vast new facilities as they bid to satisfy demand from so-called 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, while the country’s power grid is struggling to keep pace 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 that the asset manager completed raising in July. Investing in smaller facilities servicing enterprise customers will also increase the audience of potential buyers BlackRock will be able to sell the upgraded properties to, in contrast to the vast developments targeting hyper scalers that entail billions of 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’ll unveil billions in cross-border investment. Sky News earlier reported on BlackRock’s plans.
Frequently Asked Questions
What is BlackRock's planned investment in the UK's data centre market?
BlackRock plans to invest up to £500 million in the UK's data centre market, focusing on underutilized assets.
What is the Digital Gravity Partners venture?
The Digital Gravity Partners venture is a new project by BlackRock and data centre operator Gravity Edge, aimed at acquiring and upgrading existing data centres with underutilized capacity.
Why are data centres becoming a popular investment?
Data centres are becoming popular investments due to the rapid growth and adoption of AI, which is driving a significant increase in demand for the infrastructure required to power it.
What challenges does the UK face in the data centre market?
The UK faces challenges such as high electricity costs and a power grid that is struggling to meet the increasing demand for data centre infrastructure.
What is the significance of BlackRock's investment in smaller data centres?
BlackRock's investment in smaller data centres servicing enterprise customers increases the potential buyer base for these properties, making them more attractive for exit liquidity.
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