Key Points
- Japanese telecommunications group KDDI Corporation and its subsidiary Telehouse have completed the acquisition of the Inventory Estate at East India Dock in East London for more than £220 million (US$294 million).
- The property was acquired from LaSalle Investment Management and Trilogy Real Estate to support the expansion of Telehouse’s existing London Docklands data centre campus.
- The site will support the development of a new high-density, AI-ready data centre designed to provide high-performance digital infrastructure.
- Telehouse has secured 65 MVA of power capacity for the development, providing a foundation for phased, long-term expansion.
- The property currently contains two office buildings covering approximately 483,000 square feet (44,862 square metres).
- Planning consent is already in place for a proposed data centre measuring approximately 376,000 square feet (35,000 square metres).
- Mark Pestridge, Managing Director of Telehouse Europe, described the purchase as an important step in the long-term development of the London Docklands campus.
- Takayo Takamuro, Executive Officer and European Chief Executive of Telehouse, said the new facility would become one of the largest buildings within the company’s Docklands campus.
- Chris Lewis, Head of UK Transactions at LaSalle Investment Management, said refurbishment work undertaken with Trilogy had prepared the site for its next development.
- Telehouse plans to maintain engagement with local stakeholders and the wider Tower Hamlets community, focusing on sustainable development, local investment and employment opportunities.
- The transaction follows Telehouse’s ongoing London expansion, including the nine-storey Telehouse West Two facility, which is scheduled for completion in 2028.
What Has Telehouse Acquired in East India Dock and Why Is the Deal Significant?
Japanese telecommunications group KDDI Corporation and its data centre subsidiary Telehouse have completed the purchase of the Inventory Estate in East London’s East India Dock for more than £220 million (approximately US$294 million), securing additional land for a major expansion of their London Docklands data centre campus. The acquisition, completed on 29 October 2026, was made from LaSalle Investment Management and Trilogy Real Estate. The site will support a new high-density, AI-ready data centre, with 65 MVA of electricity capacity secured to underpin phased development. The transaction strengthens Telehouse’s position in London’s digital infrastructure market as demand for artificial intelligence computing, high-performance connectivity and data centre capacity continues to grow.
According to Dan Swinhoe of Data Center Dynamics (DCD), who reported the completed acquisition on 29 October 2026, the development will add a new facility to Telehouse’s existing London Docklands operations. The publication reported that the proposed data centre will have a capacity of 65MW. In its official announcement published on 29 October 2026, Telehouse confirmed that the acquisition had been completed and that 65 MVA of power had been secured for the site. The company said the additional land would allow it to increase capacity at scale, benefit from its established connectivity ecosystem and respond to future customer requirements amid growing constraints on land and power availability.
The transaction is strategically important because the acquired property is directly adjacent to Telehouse’s existing Docklands campus. This proximity provides an opportunity to expand within an established digital infrastructure location rather than develop an entirely separate data centre site.
The acquisition also reinforces KDDI’s investment in the UK digital infrastructure market. As businesses increasingly depend on cloud computing, high-performance networks and artificial intelligence applications, access to suitable sites and electricity capacity has become an important consideration for data centre operators.
The new development is expected to support high-density colocation services, low-latency connectivity and AI-related workloads, extending the infrastructure available to Telehouse customers.
What Are the Development Plans for the Inventory Estate?
The Inventory Estate currently accommodates two office buildings with a combined area of approximately 483,000 square feet (44,862 square metres).
The property also benefits from existing planning consent for a data centre measuring approximately 376,000 square feet (35,000 square metres).
According to IDCNOVA’s report of 30 October 2026, the proposed facility is intended to provide high-density, AI-ready infrastructure capable of supporting computing requirements across several industries.
These include healthcare, education and financial services, where organisations increasingly rely on digital platforms, data processing and connected technology systems.
The development will form part of the wider Telehouse London Docklands campus. Its location next to existing operations is expected to allow the company to make use of the established connectivity infrastructure and customer ecosystem already present at the site.
Telehouse’s official announcement also identifies high-density colocation services and low-latency connectivity as important elements of the planned infrastructure.
The company has not provided a detailed construction timetable for the Inventory Estate development in its announcement. It has, however, confirmed that the secured electricity capacity will provide a basis for phased, long-term expansion.
An important technical distinction concerns the power figures reported for the project. Telehouse’s official announcement confirms 65 MVA of secured power capacity, while Data Center Dynamics describes the planned facility as a 65MW data centre. MVA and MW are different electrical measurements and should not automatically be treated as interchangeable. The confirmed 65 MVA figure relates to secured power capacity rather than an independently confirmed 65MW IT load. This distinction is relevant when assessing the development’s eventual computing capacity, particularly because data centres require substantial electricity for servers, cooling systems and supporting infrastructure.
How Will the Acquisition Strengthen Telehouse’s London Docklands Campus?
The acquisition provides Telehouse with additional development space alongside its existing London Docklands operations.
The company describes the campus as one of Europe’s leading connectivity hubs, with an established network ecosystem supporting businesses that require reliable data centre services and digital infrastructure.
According to Telehouse, the new land provides an opportunity to add capacity at scale while making use of the connectivity already operating across the campus.
This is particularly relevant to high-density computing environments, where customers may require substantial processing capacity and reliable connections between networks, cloud platforms and enterprise systems.
The development is also expected to support customers pursuing artificial intelligence initiatives. AI workloads can place considerable demands on computing infrastructure, particularly where organisations need to process large datasets or run resource-intensive applications.
The new facility is intended to respond to these requirements through high-density colocation, low-latency connectivity and AI-led workloads.
Mark Pestridge, Managing Director of Telehouse Europe, described the transaction as an important milestone in the company’s long-term development strategy.
In the official company announcement, Pestridge said:
“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.”
He added that the acquisition would provide space for future expansion to support customers’ digital growth ambitions, including innovation taking place across healthcare, education and financial services.
Pestridge also stated:
“As demand for AI-ready infrastructure grows, we remain focused on sustainable operations, community engagement, and creating opportunities in the local area.”
His comments highlight three areas of focus associated with the expansion: increasing digital infrastructure capacity, supporting customers’ technology requirements and maintaining engagement with the surrounding community.
What Have Telehouse Executives Said About the New Data Centre?
Takayo Takamuro, Executive Officer, European Chief Executive and Board Director of Telehouse, also commented on the acquisition and its significance for the company’s expansion plans.
According to Telehouse’s official announcement, Takamuro said:
“This acquisition supports the next phase of our growth and our commitment to supporting customers’ AI ambitions.”
Takamuro added that the new data centre would become one of the largest facilities within the Telehouse London Docklands campus, reinforcing its position as a major European connectivity hub.
The comments underline the company’s intention to expand its infrastructure in response to changing customer requirements.
The development is not limited to providing additional property space. It is also intended to strengthen the company’s ability to accommodate businesses requiring more advanced digital infrastructure.
For organisations operating in sectors such as financial services, healthcare and education, data centre capacity and connectivity can support a range of activities, including digital platforms, data-intensive applications and AI-based services.
The expansion therefore has implications beyond the data centre sector itself, as the infrastructure is intended to support organisations across several areas of the wider economy.
The project also demonstrates the importance of Artificial Intelligence (AI) and IT and Computer Science in the development of modern digital infrastructure, particularly where businesses require specialist computing environments, network connectivity and reliable data management capabilities.