Telehouse and its Japanese parent KDDI have completed the purchase of the Inventory Estate at East India Dock in London for more than £220m, adding a powered development site next to one of Europe’s busiest interconnection campuses. The operator plans a high-density, AI-ready data centre on the land, backed by 65 MVA of secured power.
What was agreed
The deal, announced on 29 October, was made by KDDI Corporation and Telehouse International Corporation of Europe. The sellers were LaSalle Investment Management and Trilogy Real Estate. Telehouse put the price at more than £220m (about $294m).
According to the company, the new facility will provide high-density colocation and low-latency connectivity for AI-led workloads, and will plug into the connectivity ecosystem of the existing London Docklands campus. Mark Pestridge, managing director of Telehouse Europe, called the purchase “an important step in the long-term development” of the campus. Telehouse has not published a construction timetable or a target IT capacity for the new building.
The site in numbers
- Price: more than £220m.
- Power: 65 MVA secured, which Telehouse says will support phased, long-term expansion.
- Estate: roughly 1.1 million sq ft, including two office buildings of about 483,000 sq ft let to education tenants, according to Data Centre Review.
- Planning: consent for a data centre of around 376,000 sq ft, which Data Centre Review estimated at about 10% of London’s consented and powered data centre pipeline.
The acquisition is separate from Telehouse West Two, a nine-storey data centre already under construction on the Docklands campus and due for completion in 2028.
Context: powered land is London’s scarcest asset
Grid capacity has become the main constraint on new data centre supply in and around London, and the UK government has only this week set out conditions under which data centre projects can seek faster grid access through its Data Centre Covenant. Against that backdrop, a site that already combines planning consent with a secured power allocation commands a premium, and the price paid here reflects that.
Why it matters for modular and edge in Europe
Docklands is a dense interconnection hub where networks, cloud on-ramps and enterprises meet, which is exactly the kind of metro location where latency-sensitive AI inference is expected to run. The deal shows that established colocation operators intend to serve that demand by expanding large, carrier-dense campuses rather than leaving it to distributed sites.
For modular and edge providers, the picture is mixed. Powered metro land at this scale is scarce and expensive, which limits how many comparable campuses can be built and may push some regional and enterprise workloads towards smaller, faster-to-deploy facilities outside central London. At the same time, edge and modular sites still need to connect back to hubs such as Docklands, so growth there tends to reinforce, rather than replace, demand for well-connected distributed capacity.
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