JLL reports that artificial intelligence (AI) is altering the function and design of life science labs, driving demand for a new type of facility.

The next generation of labs blend traditional wet lab environments with high-functioning digital capabilities. The findings are from JLL’s 2025 EMEA Life Sciences Industry Perspective and Cluster Report.

Lab spaces are having to evolve to accommodate hybrid research models, with growing demand for flexible units that seamlessly integrate wet labs (for biological experiments) and dry labs (for data analysis and computational work). The shift reflects the growing convergence of biology and data science, as AI brings hopes of reducing drug development timelines and costs.

This transformation is being fuelled by record investment. In 2024, there were 100 deals and more than $500 million invested by Venture Capital (VC) targeting life sciences companies specialising in AI in Europe. More widely, the momentum is continuing in 2025, with overall European life sciences VC investment reaching €3.8 billion in Q1 – the highest first-quarter total ever recorded for the broader life sciences sector.

Life sciences companies are often grouped together in geographical clusters to allow them to access research institutions, talent, and other supporting businesses. The report analysed these clusters and found that they can be broken down into three key areas across Europe:

Biopharma R&D (led by UK's Golden Triangle and Paris)

Digital Health/Tech R&D (top clusters in London and Berlin)

Pharmaceutical Manufacturing (Dublin and Medicon Valley dominating)

The increasing demand for modern, tech-enabled labs – plus the fact that demand is often concentrated in these clusters - is creating a shortage of suitable properties across EMEA. Private lab stock in Berlin, Paris, and London remains scarce, though pipelines could double inventory in the next five years. Projects under construction across six major European hubs represent over 27% of the existing supply.