Harworth working on sale of second "hyperscale" data centre site

Harworth Group PLC on Wednesday announced plans to sell a second plot of land for a potential "hyperscale" data centre, highlighting further opportunities in its portfolio.

The Rotherham, England-based land regeneration company confirmed that it has identified a second site in its current land portfolio, which it said "can deliver a hyperscale data centre". It previously sold a plot to Microsoft Corp for a data centre in 2024.

Harworth said it has entered "advanced negotiations with several counterparties" for the sale of the site, noting that the land benefits from planning consent and power connections.The sale opportunity highlights the embedded value of the 0.8GW of power connections in its land bank.

Providing a trading update for the first half of 2026, Harworth said it so far has completed, exchanged or is in legal negotiations on 60% of its budgeted full-year sales, including 952 residential plots. It is also progressing 1.5 million square feet of industrial and logistics lettings and land sale negotiations.

Harworth has completed or is "in legals" on three pre-lets for units in its investment portfolio. It expects these to generate £3.7 million in annualised rental income, at an average 17% premium to combined estimated rental value.

Harworth expects its EPRA net disposal value as of June 30 to be "modestly" lower compared with December 31, when it was £727.3 million or 224.4p per share.

The stock was up 5.0% at 141.80 pence on Wednesday afternoon in London.

It also expects lower residential land valuations, citing "softer demand and increased costs in housebuilder end markets". However, industrial and logistics valuations are broadly unchanged, Harworth said, with "management actions to drive value" offsetting higher labour and materials costs.

Harworth said it is well-funded with £99.5 million in available liquidity as of June 30, down from £59.8 million one year prior. Its pro forma loan-to-value ratio is 15.6% as of Wednesday, down from 20.4% at June 30 and from 19.0% on that date in 2025.

Chief Executive Lynda Shillaw said Harworth is "well positioned to accelerate our reallocation of capital to powered land and industrial growth sectors.

"This in turn will create a simpler, higher-returning platform to deliver sustainable future growth."

Harworth will release its full interim results on September 15.

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