KDDI, a Japanese telecommunications group, is investing approximately £ 220 million (US$ 293 million) in a new data center development in east London, as demand for computing infrastructure continues to grow alongside the adoption of artificial intelligence. It will also be designed to accommodate high-performance GPU servers and provide high-capacity, low-latency network connections.
The company announced that its European subsidiary, Telehouse Europe, had purchased a site next to its existing London Docklands Campus. The property provides 65 MVA of additional power capacity, bringing the company’s total power capacity across its London data centers to 1.8 times its previous level as detailed in a press release.
The expansion targets demand from businesses requiring greater computing power, particularly for AI applications. The purchase is part of Telehouse Europe’s longer-term investment in the UK market and KDDI is also expanding its data center footprint in Frankfurt, Paris and Bangkok as it develops infrastructure to support growing AI related demand.
According to a report by Mordor Intelligence, London’s data center market is expected to expand from 2.45 GW in 2025 to 2.77 GW in 2026, reaching 5.16 GW by 2031, representing a CAGR of 13.21 percent over the forecast period. Market growth is underpinned by increasing hyperscaler demand for AI ready infrastructure, enterprise migration to hybrid cloud environments, and London’s established global connectivity.
London is also a key location for financial services and telecommunications infrastructure, making power availability and network connectivity important factors in data center development.