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UK landlord Segro expands data centre drive to ride AI boom

British 'warehouse owner'?Segro has expanded its efforts into data centres. It is lining up new sites in France and Germany as well as in Italy and Poland to take advantage of the global boom in artificial-intelligence spending.

David Sleath, in an interview on Thursday, said: "We think that there will be a very strong demand in the future in and around other large cities."

We are working to secure planning permissions on some of these sites and power.

Segro, which has around 10.9m square metres of space to its name, is betting that the?demand for AI-based data centres will continue to grow despite concerns from industry about power supply constraints.

Power Supplies

Sleath stated that the group is well-positioned in terms of its ability to provide power for its sites located in London and Slough (west of the capital), where it has upgraded 400 megawatts.

Segro signed a contract for a data centre of 30,000 square metres in Slough during the first quarter. The company also won approval from planning authorities for a 56-megawatt data center in West London, worth $1.35 billion.

Amazon and other technology companies have been slowed down by long electricity queues in Europe, causing them to delay or cancel their data center expansion plans.

Sleath claimed that some developers built speculatively, without pre-let agreement, leaving them vulnerable to planning changes.

He said that "we are very clear that we will not do that". Segro would only commit to capital after it had secured a prelease with a hyperscaler.

Last year, data centre operators made up about 7% of Segro's clients. Transport & logistics, retail, and food manufacturing make up the majority of their clientele.

(source: Reuters)