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UK-based warehouse and logistics property company Segro is expanding its data centre strategy across Europe, with planned sites in France, Germany, Italy and Poland to benefit from rising artificial intelligence-driven demand. The company expects strong long-term demand around major urban centres and is actively working on securing planning approvals and power connections. In the UK, it has strengthened its position with 400 MW power upgrades in London and Slough, a pre-let deal for a 30,000 square metre facility, and approval for a GBP 1 billion (USD 1.35 billion) data centre project in West London. Data centres currently account for about 7% of its clients.
British warehouse and logistics real estate company Segro has expanded its focus on data centres as it positions itself to benefit from the ongoing growth in artificial intelligence-related infrastructure demand. The company is exploring new development opportunities across France, Germany, Italy and Poland, alongside its existing UK operations. Advertisement
The company’s chief executive indicated that demand for data centres is expected to remain strong in and around major cities over the coming years. He noted that the company is actively working on obtaining planning permissions and securing power availability across multiple identified sites, which remains a key requirement for development in this sector.
Segro has also strengthened its UK portfolio by securing around 400 megawatts of power upgrades across key locations, including London and Slough in the west of the capital. These power arrangements are considered critical as data centre operations require large and stable energy capacity.
In Slough, the company has signed a pre-let agreement for a 30,000 square metre data centre, reflecting early-stage commitment from a client before construction completion. In West London, Segro has also received approval for a large-scale data centre project valued at around GBP 1 billion (USD 1.35 billion), with a planned capacity of 56 megawatts.
The broader European data centre market continues to face delays due to long electricity connection queues, which have impacted expansion timelines for several technology companies, including Amazon. These delays have also raised concerns about project postponements or cancellations across the sector.
According to the company’s chief executive, some developers are moving ahead with speculative construction without securing tenants in advance, which exposes them to planning and regulatory risks. He clarified that Segro does not follow this approach and only commits capital once a pre-lease agreement is in place with a hyperscale client.
At present, data centre operators account for around 7% of Segro’s overall customer base. The company’s portfolio continues to be largely driven by tenants from transport and logistics, retail, and food manufacturing sectors, which remain its primary revenue contributors.
Source Reuters
5th Jun, 2025
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