AI firms leased more than 450,000 sq ft of London office space

Fahad Redha

May 14, 2026
2 min read

AI firms leased more than 450,000 sq ft of London office space

Artificial intelligence companies leased over 450,000 square feet of London office space last month, underlining how quickly the sector is expanding across the capital. The figure, reported by real estate analysts CoStar, compares with an average of 40,000 square feet a month across 2025 for companies whose core business is building AI models.

Almost half of the deals were for space around King’s Cross and Euston stations, where firms benefit from strong transport links, access to Cambridge and proximity to London universities.

Patrick Scanlon, CoStar’s senior director of market analytics, said the recent surge looked more like a coming-of-age moment for the sector than a bubble. There was still significant unmet demand from AI firms looking for offices in London, he added.

The rise has gathered pace over the past year. In April 2025, less than 50,000 square feet of office space was being leased by AI companies. By March 2026, that had climbed to 250,000 square feet before increasing again last month.

The Knowledge Quarter in King’s Cross is home to DeepMind alongside Google, Meta and Microsoft. Microsoft has also agreed to lease the eight-storey Film House building in Soho, covering 100,000 square feet.

Scanlon said London continues to offer skilled workers, venture capital and the ability for companies to cluster around major knowledge centres. He added that many firms still want a visible King’s Cross base to show they are established, while there remains a strong appetite to share ideas and work close to others in the sector.

City Hall is already examining that shift through its AI and jobs taskforce announced by the Mayor, which looked at how automation could reshape work across London. The political debate is also growing, with concerns raised over Palantir’s AI contract with Scotland Yard and how public bodies use emerging technology. A recent City Hall report found at least one million jobs carried out by Londoners were highly or significantly exposed to the impact of AI.

AI is now reshaping where London works as well as how London works. Follow EyeOnLondon for ongoing coverage of jobs, business and technology across the capital.

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About Author

Fahad Redha

Fahad is the Content Editor at EyeOnLondon, overseeing the publication’s editorial output across news, culture, and lifestyle. With a background in journalism from the University of the Creative Arts, he brings a broad range of experience from local London reporting in Kensington & Chelsea, where he held roles including motoring, events, and health editor. At EyeOnLondon, Fahad plays a central role in shaping content and maintaining editorial standards. His work spans everything from daily news to feature coverage, with a particular strength in motoring and events. He also incorporates photography into his reporting, adding a visual layer to many of his stories. Fahad joined EyeOnLondon in February 2021.