This year's Nobel Prize for physics was recently awarded to advances made in quantum mechanics, so paving the way for a new generation of computers. This gives further support to the overall surge in AI and quantum computing, generating strong demand for new types of real estate. The synergies between this and life sciences brings a silver lining for the Life Sciences sector which is experiencing near-term challenges, despite the government's commitment to it as a strategic national priority. Nicky Fairbairn, commercial real estate partner at international law firm, DAC Beachcroft, considers recent developments.
The UK has recently attracted landmark investment commitments to artificial intelligence and quantum computing. During President Trump’s recent visit to the UK, there was talk of a long-term £150bn US investment into UK tech, and Google followed up with a pledge to invest £5bn into the country’s new AI infrastructure and data centres.
There has also been significant progress in the development of the much-less heralded quantum computing sector which is attracting increasing funding for highly specialised labs. These require hugely specialised and capital-intensive facilities but are increasingly seen as one of the next big growth sectors.
In August, the creation by Oxford Ionics of a state-of-the-art quantum computer at the National Quantum Computing Centre’s Harwell facility has been seen as a landmark moment for the sector and followed the UK government's £670m investment in quantum technology.
Synergies and symbiosis
As might be expected, there are substantial synergies between the life sciences, AI, and quantum computing sectors, a symbiotic relationship that is steadily growing stronger.
In terms of the physical space, life sciences’ property requirements are not as generic as mainstream occupiers. While ‘front office’ space is comparable to other industries, the sector’s core needs - wet labs for experimentation and dry labs for computational work – require bespoke environments.
Increasingly, AI is influencing the balance between these two and has reduced the reliance on large volumes of wet lab space by enabling drug discovery and testing to shift into digital environments.
Digital twinning – creating virtual replicas of labs through platforms such as MATLAB and Simulink - enables more experimentation to occur computationally. This is gradually transforming the space demand ratio from the traditional 60:40 split to being increasingly in favour of more offices and collaboration space.
AI-powered design tools, such as BricsCAD, now help architects and developers create adaptable lab and office environments at speed and scale. Meanwhile, property management platforms such as MRI Contract Intelligence are streamlining transaction processes by rapidly extracting and structuring data from leases and due diligence documents - critical for a sector that is growing fast and needs agility in managing its estate.
AI, quantum computing, and life sciences may each have highly specified technical needs they all require flexible, technology-enabled workplaces that prioritise collaboration, employee well-being, and sustainability. In this area, AI-driven building management systems are increasingly being deployed across both sectors to optimise energy use, reduce carbon footprints, and improve workplace operability and comfort.
Changing not shrinking
Increasingly an understanding of all these complex areas will help determine how property serves them. Although the balance of demand is evolving, the overall trajectory of the need of these sectors for property remains upward. AI will help redefine what ‘R&D real estate’ looks like in the UK and can assist developers in creating the operational envelopes for these sectors.
In the longer term, for developers, investors, and policymakers, the message is clear: the winners will be those who can build flexible, future-ready environments that serve not only today’s life sciences occupiers but also tomorrow’s AI and quantum pioneers.
