BlackRock has unveiled a £500 million programme to develop and modernise UK data centres, underscoring the sector’s growing strategic importance as demand for AI, cloud services and digital operations accelerates. The investment will be delivered through Gravity Edge, a new joint venture with Digital Gravity Partners (DGP).
The venture will acquire, refurbish and expand enterprise-grade facilities—particularly in regions where power constraints have become a major obstacle. The strategy focuses on existing sites with underutilised capacity rather than hyperscale builds, aiming to boost compute power for UK businesses.
The programme launched with the purchase of a west London facility worth more than £100 million, already serving a financial services tenant and due for extensive upgrades. Gravity Edge plans to enhance energy efficiency, increase rack density and unlock additional sellable capacity.
“By combining BlackRock’s global scale and capital access with DGP’s sector expertise, we want Gravity Edge to become the preferred partner for mission-critical infrastructure close to major urban centres,” said Thor Johnsen, managing partner at DGP.
Facilities in the 5–20MW range will be targeted, offering advanced cooling, resilient power and high-speed connectivity for enterprise clients.
The initiative comes amid a wave of investment in UK digital infrastructure. Segro and Pure Data Centres are developing a £1 billion hyperscale site in west London, while Blackstone has approval for a £10 billion development in the North East. Unlike these projects, BlackRock’s focus remains enterprise data centres, where demand is expected to remain strong.
The announcement coincided with a US presidential state visit to the UK, highlighting the role of transatlantic investment partnerships in accelerating Britain’s digital growth.
BlackRock’s real estate arm manages $25 billion globally, and the Gravity Edge platform adds a strategic UK foothold. The firm is also expanding its broader technology footprint, recently agreeing to acquire UK data group Preqin for £2.55 billion to complement its Aladdin investment platform.
By prioritising upgrades to existing facilities in power-constrained markets, BlackRock’s programme aims to meet rising AI-driven demand while improving energy efficiency. The £500 million commitment marks another step towards the UK’s ambition to become a global hub for AI and digital infrastructure.
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