Tritax Big Box acquires Heathrow site for GBP 70 million to develop major UK data centre

Tritax Big Box REIT has acquired a 74-acre site in Heathrow, London, within the Slough Availability Zone, aiming to develop one of the largest data centres in the UK. The acquisition, valued at £70 million, includes a 50% stake in a joint venture with a leading European renewable energy provider. This strategic move ensures accelerated power delivery through pre-existing grid connections, expediting the timeline for a 147 MW data centre project.

The first phase of the project will see the development of a 107 MW facility spanning 448,000 square feet across three floors. Construction is expected to commence in the first half of 2026, with completion and income recognition projected for the second half of 2027. Tritax estimates a yield-on-cost of 9.3%, significantly exceeding the typical 6-8% return in logistics investments.

The JV partnership provides grid connections to two independent substations, enhancing power resilience while incorporating utility-scale battery storage. Tritax expects to fund the project through existing financial resources and its capital recycling program. Additionally, the company has outlined a future pipeline of data centre opportunities across the UK, leveraging access to approximately 1 GW of power.

Aubrey Adams, Chairman of Tritax Big Box, emphasized that the acquisition represents a major step into the data centre sector, capitalizing on the growing demand for cloud and AI-driven infrastructure. The project benefits from its prime London location and the strategic partnership with a renewable energy provider, positioning Tritax as a key player in the UK data centre market.