The international real estate advisor says that big tech companies are investing heavily in building and training AI models as they aim to win the arms race as the leader to reshape industries. During 2025 and 2026 alone, Google, Amazon, Microsoft and Meta will spend $750bn on servers, chips and data centres to power their AI models.  As a result, corporate funding is flowing through to European-headquartered AI and Machine Learning (ML) companies with €16bn of venture capital (VC) invested during Q1-Q3 2025. This, says Savills, means that the established tech clusters are most likely to be more resilient when it comes to demand for office space.

London’s dominance stems from its sheer scale and maturity as a tech ecosystem. The city benefits from deep pools of VC - raising €26.5 billion in AI/ML VC over the past decade, and a highly skilled workforce of approximately 120,000 software engineers. Its global reputation, world-class universities, and regulatory environment continue to attract top-tier talent and investors.

Andrew Barnes, Director in Savills central London tenant representation team, says: “Established AI companies are expanding rapidly across London, with Synthesia signing for 2,000 sq m at Regents Place, upsizing by four times its previous office footprint. Elevenlabs, Salesforce and PhysicsX have also signed for office space in London over the last 12 months and we understand that Databricks, which only moved two years ago, is already in the market again for up to 9,300 sq m.”

Mike Barnes, Director in Savills European commercial research team, says: “AI is an additional long-term risk to the office sector, but we believe any changes to office-based jobs are likely to be incremental over the long term as roles are augmented, rather than automated. Oxford Economics forecasts EU office based employment to rise by 4% over the next 10 years, with new jobs created including AI engineers, data scientists, and AI ethics officers.”

Christina Sigliano, EMEA Head of Global Occupier Services, adds: “Relationship building, creativity and leadership are among the growing list of skills employers will seek, and the workplace will be more focussed on generating new interactions, requiring larger meeting rooms, focus pods, and breakout areas to cater for activity-based working.”

To read the full report, please follow this link: https://www.savills.com/research_articles/255800/382043-0