KDDI, Telehouse acquire £220m London Docklands site

Author: Joe Peck

KDDI, a Japanese telecommunications company, and Telehouse, an operator of colocation data centres, have completed the purchase of the Inventory Estate in East India Dock, London, for more than £220 million ($294 million). The site was acquired from LaSalle Investment Management and Trilogy Real Estate.

The land will support a new high-density, AI-ready data centre as part of the expansion of Telehouse’s existing London Docklands campus. Its proximity to the campus will provide an opportunity to add capacity and make use of its established connectivity ecosystem, coming amid increasing constraints on land and power.

The planned development will provide high-density colocation, low-latency connectivity, and infrastructure for AI workloads. A total of 65MVA of power has been secured for the site, supporting phased, long-term expansion.

The acquisition follows the announcement of Telehouse West Two, a nine-storey data centre building under development at the London Docklands campus, which is due for completion in 2028.

Telehouse says it will continue to engage with local stakeholders and the wider Tower Hamlets community as plans for the new development progress, focusing on sustainable development, local investment, and employment opportunities.

Further expansion at London Docklands

Mark Pestridge, Managing Director of Telehouse Europe, comments, “The purchase of the Inventory Estate represents an important step in the long-term development of our London Docklands campus, one of Europe’s leading connectivity hubs.

“It provides space for future expansion to support our customers’ digital growth ambitions, including the crucial innovation that is taking place across industries such as healthcare, education, and financial services.

“As demand for AI-ready infrastructure grows, we remain focused on sustainable operations, community engagement, and creating opportunities in the local area.”

Takayo Takamuro, Executive Officer, European Chief Executive, and Board Director at Telehouse, adds, “This acquisition supports the next phase of our growth and our commitment to supporting customers’ AI ambitions. The new data centre will be one of the largest facilities in the Telehouse London Docklands campus, reinforcing its role as the leading connectivity hub in Europe.”

Chris Lewis, Head of UK Transactions at LaSalle Investment Management, notes, “The extensive refurbishment works undertaken in partnership with Trilogy Real Estate to regenerate East India Dock into a world-class, mixed-use innovation campus have paved the way for this next exciting development on the Inventory Estate.

“We look forward to watching its progress as the Docklands are set to host an important AI-ready data centre, critical to powering London’s tech sector.”