AI firms double London office space as tech boom fuels property demand
AI firms snapped up more than 700,000 sq ft of London office space in the first half of 2026, more than double the amount taken across the whole of last year as fast-growing tech companies expand their footprint in the capital.
AI businesses accounted for as much as a third of central London office take-up during the second quarter, according to an Opportunity London report produced by property giant JLL shared with City AM.
The surge provides a boost to London’s commercial property market after years of uncertainty over hybrid working and fears that AI itself could ultimately reduce demand for office space by replacing white-collar jobs.
Central London recorded 2.6m sq ft of office lettings during the second quarter, while 4.9m sq ft is currently under offer and businesses are actively looking for a further 14.3m sq ft, according to the report.
The findings come as some of Silicon Valley’s fastest-growing AI companies establish increasingly large bases in the capital.
Anthropic, the US firm behind Claude, agreed to take around 158,500 sq ft at One Triton Square earlier this year, while ChatGPT maker OpenAI committed to roughly 95,500 sq ft at Jahn Court near King’s Cross.
Replit, the $9bn (£6.7bn) US AI coding startup, last week also picked London for its first international office, opening a base in King’s Cross and pledging to double its local headcount and investment over the next year.
It joins OpenAI, Anthropic, Databricks and Palantir among a growing cluster of US technology firms expanding their physical presence in the capital.
Since 2025, London has attracted 86 AI-related foreign direct investment projects, according to fDi Markets, more than any other European city. Paris ranked second with 28.
Jace Tyrrell, chief executive of Opportunity London, said the growth of the sector was now “showing up in leasing decisions, investment volumes and commitments from global businesses”.
“The interaction between technology, finance, professional services, research, talent and capital gives London an advantage few cities can match,” he said.
AI boom feeds London property recovery
The rush for office space forms part of a broader recovery in investment in the capital’s property market.
Some £7.4bn was invested in London commercial property during the first half of the year, up 14 per cent annually despite higher interest rates and geopolitical uncertainty.
Central London offices attracted £3.7bn over the period, while investment has also spread beyond the traditional commercial property market.
Living assets attracted £1.8bn in the first half excluding the £1.045bn Metra Living acquisition, nearly twice the ten-year average of £957m. International investors accounted for almost 60 per cent of investment in the sector.
The US remains by far the biggest source of overseas property investment, deploying £7.9bn into London between 2021 and the first half of 2026. Singapore followed with £4.4bn, Germany with £3.1bn and Japan with £2.6bn.
London also ranked sixth out of 135 cities globally for innovation output in JLL’s research and second for its concentration of talent.
But the AI expansion is also piling pressure onto a shortage of top-quality office space.
The largest technology companies are overwhelmingly targeting modern offices in areas such as King’s Cross, Euston and Fitzrovia, putting them in competition with banks, law firms and other major employers for prime buildings.
Previous research from CBRE found AI-related take-up reached 450,816 sq ft in the second quarter alone, with technology, media and telecoms businesses accounting for 27 per cent of all central London leasing.
Tyrrell said AI growth would also create greater demand for “more homes, better connectivity and transport, and greater electricity and grid capacity”, creating further opportunities for infrastructure investment.