Harworth Group (LSE:HWG) has identified a second hyperscale data centre site within its powered land portfolio and is currently in advanced discussions with several potential buyers. The proposed transaction could surpass the value of the company’s £106.6 million Microsoft land sale completed in 2024. The development highlights the growing value of Harworth’s 0.8GW portfolio of power-enabled land and strengthens its position in supporting the expansion of the UK’s digital infrastructure sector, with additional hyperscale and smaller-scale digital projects under development.
Strategic Focus Shifts Further Toward Industrial and Powered Land
The group is continuing to reshape its portfolio by increasing its exposure to industrial, logistics and powered land developments while reducing its reliance on residential projects. Harworth aims to lower residential exposure to below 15% by 2029 after industrial and logistics assets accounted for approximately 70% of the portfolio at the end of 2025.
During the first half of the year, the company secured three pre-let agreements expected to generate £3.7 million in annual rental income, achieved at levels above estimated rental value (ERV). It also progressed around 1.5 million square feet of lettings and land transactions, completed approximately 60% of its planned full-year land sales, and maintained a strong balance sheet. However, management expects EPRA Net Disposal Value (NDV) to finish modestly below 2025 levels due to ongoing weakness in the residential property market.
Digital Infrastructure Provides Long-Term Growth Opportunity
Harworth’s long-term growth strategy is increasingly centred on powered land and digital infrastructure, although near-term performance continues to be affected by uneven cash flow and fluctuations in operating results. Technical indicators remain cautious, with the shares trading below key moving averages, while a relatively high price-to-earnings ratio combined with a modest dividend yield suggests the valuation remains demanding.
About Harworth Group
Harworth Group plc is a UK-listed land regeneration and property development company specialising in industrial and logistics developments. The business owns, develops and manages more than 15,000 acres across around 100 sites throughout the North of England and the Midlands, transforming large and complex sites into industrial parks, logistics facilities and serviced development land.
The company’s long-term strategy focuses on creating sustainable commercial communities that generate employment, housing and regional economic growth. Its substantial portfolio of approximately 0.8GW of power-enabled land also positions Harworth as an important developer supporting the expansion of data centres, digital infrastructure and advanced manufacturing across the UK.
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