Tech, talent and the new urban economy

This week’s pipeline underscores a clear shift in the UK development landscape: technology, talent and long-term place-making are increasingly intertwined, driving demand across offices, living and science-led schemes.

At the centre of this trend is the growing influence of artificial intelligence on the office market. New research from CBRE highlights the scale of this shift, with AI firms already accounting for a significant share of tech leasing in London and expected to drive millions of square feet of additional demand over the next decade. Crucially, these occupiers are not just adding volume, but reshaping expectations around flexibility, connectivity and workplace design.

That demand is being mirrored by investment in supporting infrastructure. In Leeds, a joint scheme from Harworth Group and Microsoft has moved closer to delivery, with a large-scale data centre campus and industrial space set to unlock billions in inward investment. It reflects the growing importance of power, connectivity and land availability in enabling the UK’s digital economy.

Meanwhile, the rise of innovation-led campuses continues. In Cheltenham, the £1bn Golden Valley scheme, led by HBD in partnership with Cheltenham Borough Council, has secured detailed approval for its first phase, marking the transition from planning into delivery. With a focus on cyber, AI and national security, it reinforces the clustering effect now shaping regional growth strategies.

Education and skills are also playing a central role in this ecosystem. Willmott Dixon’s appointment to deliver a £92m campus at Wembley Park signals continued investment in specialist training facilities, particularly in construction, engineering and green skills. These projects are increasingly viewed not just as education buildings, but as critical infrastructure supporting economic growth.

The living sector, too, is evolving in response to demand. New schemes continue to come forward to address structural undersupply. Projects in Manchester and Bristol highlight ongoing investment in purpose-built student accommodation, often integrated with wider regeneration and public realm improvements. These developments are increasingly expected to deliver not just beds, but broader community and placemaking benefits.

Elsewhere, large-scale regeneration remains a defining theme. As previously reported in The SectorScope, from Bristol’s Temple Quarter to Hull’s East Bank, mixed-use masterplans are combining housing, commercial space and infrastructure to unlock long-term growth. What stands out is the emphasis on physical and economic connectivity as cities reposition themselves for the next phase of development.

One to watch

The continued expansion of AI as an occupier group is set to have far-reaching implications, not just for office demand, but for energy infrastructure, skills provision and urban planning. As schemes like Golden Valley and Skelton Grange move forward, the ability to align these elements will be critical to delivery.

Risk radar

Delivery pressures are mounting. Building safety rules, viability challenges and infrastructure constraints, particularly power, are slowing schemes, while office supply risks falling behind fast-growing AI demand.