U.S. investors are increasingly targeting the U.K. market, with a growing emphasis on technology, e-commerce and digital infrastructure. Haynes Boone Real Estate Partner Mark Payne authored an article for EG Radius discussing the U.K.’s strategic importance within Europe and how these investors are emphasizing this.
Read an excerpt below:
U.S. investors continue to target the U.K. market, with increased focus on technology, e-commerce and digital infrastructure. This highlights the U.K.’s strategic market potential within Europe, with government initiatives and favourable exchange rates further driving interest. Key investment areas include:
- Data centres;
- Electric vehicle infrastructure; and
- Self-storage.
Data Centres
An area of particular focus for these investors, data centres are critical infrastructure for the digital economy, providing the necessary facilities for data storage, processing and management. One of the world’s leading tech giants has announced plans to invest a staggering $8bn (€6.4bn) in data centres in the U.K., which underscores the importance of the U.K. as a hub for digital infrastructure.
However, the development of data centres in the U.K. faces significant challenges, primarily related to the availability of power. Finding sites with sufficient power capacity has been a major hurdle for developers, investors and site sellers alike. The lack of available power has frustrated many potential development opportunities, stalling progress in this critical sector.