UK's Harworth Group in Advanced Talks to Sell Data Center Land in Second Hyperscale Deal

UK real estate firm Harworth Group has identified a second plot of land suitable for hyperscale data center development and is in advanced negotiations with multiple parties to sell the site, the company announced this week as part of its H1 trading update.

The Yorkshire-based developer, which owns and manages a portfolio of more than 15,000 acres across over 100 sites in the North of England and the Midlands, said the land benefits from both planning consent and power connections, making it immediately viable for large-scale digital infrastructure projects. While the company did not disclose the exact location of the target site, it confirmed that discussions are underway with several counterparties.

The potential transaction builds on Harworth's track record in the data center sector. In 2024, the firm sold the Skelton Grange site in Leeds to Microsoft for $106.6 million, a deal that paved the way for a major cloud campus in the region. According to Harworth, the new agreement has the potential to exceed the value of that 2024 transaction, reflecting the growing demand for powered land in the UK's digital infrastructure pipeline.

The company said its total potential landbank for data center development stands at 800MW of power connections, either conditionally secured or in the pipeline, and represents significant unrealized value. Beyond the current negotiations, Harworth said it sees further hyperscale data center opportunities within its existing portfolio, as well as smaller-scale digital infrastructure projects including colocation facilities and Edge providers.

The announcement comes as Harworth accelerates its strategic shift away from residential development. The firm previously set a target to allocate 85 percent of its portfolio to industrial and logistics assets by 2029, and by the end of 2025, some 70 percent of its holdings were already in that category. The company said it is now speeding up the reallocation of capital toward powered land and industrial opportunities, citing the "scale and strength of opportunities" across its pipeline.

Lynda Shillaw, CEO of Harworth Group, said: "Harworth specializes in unlocking land at scale, with planning and power secured, and this is key to capturing high-returning development opportunities across the data center and advanced manufacturing sectors. Our second data center opportunity that we are highlighting today underlines Harworth's position as one of the most significant regional players in the rollout of the UK's digital infrastructure, working with some of the largest operators in the industry."

She added: "With our unique skillset, extensive land bank and 800MW of power connections across our portfolio either conditionally secured or in the pipeline, we are well positioned to accelerate our reallocation of capital to powered land and industrial growth sectors. This in turn will create a simpler, higher-returning platform to deliver sustainable future growth."

Industry observers note that the UK data center market is experiencing a surge in demand driven by cloud adoption and AI workloads, with land that has pre-secured power and planning consent becoming a scarce and highly valued commodity. Harworth's ability to repeatedly identify and monetize such sites positions it as a key enabler for hyperscale operators seeking to expand their UK footprint without the lengthy lead times typically associated with greenfield development.