The expanding UK cyber industry drives need for secure, resilient workspaces, positioning regional cities as critical nodes in digital infrastructure growth
Key takeaways
- The UK’s cybersecurity sector continues to expand rapidly, generating over £13 billion in revenue and employing more than 67,000 people. It plays a critical role in national resilience, digital infrastructure, and economic security.
Recent high-profile attacks exposed the operational and financial risks of cybercrime. These events are accelerating demand for digitally secure, resilient workplaces, while reinforcing the strategic importance of cyber-ready real estate in occupier decision-making.
- Although London continues to lead the way, cybersecurity companies are increasingly active in regional office markets, seeking high-quality space that supports both operational resilience and talent attraction.
Demand is being driven by rapid headcount growth and the critical need for secure, resilient digital infrastructure. This is particularly evident in cities with strong tech ecosystems, proximity to universities, and access to skilled labour — where cyber-related university courses have risen by 34%, further boosting the talent pipeline.
- 45% of UK cyber firms are now based outside London and the South East, with strong growth in cities such as Manchester and Bristol.
These locations benefit from proximity to leading universities, vibrant tech ecosystems, and government-backed initiatives. The North West leads the way, accounting for nearly 10% of all UK cyber firms, the highest share of any region outside the capital. Its cyber strength is reinforced by the presence of over 300 firms in Manchester, with major employers including NCC Group and BAE Systems, and strategic assets such as the National Cyber Force (NCF) HQ in Lancashire.
- Significant public and private investment is fuelling innovation, with the NCF HQ in Lancashire and regional hubs supporting R&D, skills development, and commercialisation.
The sector’s expansion aligns with the UK’s National Cyber Strategy and broader ambitions for digital leadership, regional levelling-up, and innovation-led growth.
- Looking forward, the decentralisation of cyber activity is reshaping real estate needs, with regional cities becoming key nodes in the UK’s digital infrastructure.
Larger firms are securing strategic sites near defence and government assets, while university spin-outs scale into flexible, secure environments. As the sector grows 8–12% annually, future demand will centre on hybrid-ready, high-security offices with shared cyber infrastructure and proximity to talent.
- Expansion into regional cities and the growth of university spin-outs are driving a new wave of demand for digitally resilient office space across the UK. If floorspace growth keeps pace with sector expansion, an additional 3.3 million sq ft could be required by 2030, highlighting the need for future-proofed, regionally distributed workspace.
This shift reflects the increasing importance of secure, high-spec environments for innovation-led sectors. For landlords and developers, aligning with these trends will be critical to capturing emerging demand.
The Real Estate Risks of Cyber (In)Security
Cybersecurity is now a cornerstone of the UK’s national defence and economic stability. Recent high-profile attacks exposed the operational and financial risks of cybercrime. These events are accelerating demand for digitally secure, resilient workplaces, while reinforcing the strategic importance of cyber-ready real estate in occupier decision-making.
M&S confirmed a cyber attack that disrupted payments and logistics, costing an estimated £300 million. JLR’s global production was halted, threatening £1.7 billion in lost revenue. Meanwhile, the Co-op Group experienced a major systems outage affecting 2,300 stores, leading to widespread payment failures and supply chain breakdowns.
These incidents highlight the vulnerability of even the most established brands to sophisticated cybercrime. In response, companies are accelerating investment in secure infrastructure, employee training, and incident response.
The UK government is also scaling up its National Cyber Strategy, including regional cyber hubs, intelligence sharing, and the new NCF HQ in Lancashire. These efforts are designed not only to protect commercial interests but also to safeguard critical national infrastructure and defence capabilities from hostile attacks.
For real estate, this shift has tangible implications. Cybersecurity is now a board-level priority, driving demand for resilient, secure, and digitally enabled office space.
Occupiers are prioritising buildings with robust connectivity and backup systems. Additionally, the clustering of cyber firms in regional cities is influencing location strategies, with demand rising in places such as Manchester and Bristol.
As cyber risk becomes a defining feature of operational resilience, the built environment must adapt to support the evolving needs of this critical sector — bridging the gap between digital security and physical infrastructure.
Securing the future: The rapid rise of the UK cybersecurity sector and its impact on regional office markets
The UK’s cybersecurity sector is undergoing rapid expansion, driven by escalating digital threats, strategic government investment, and a flourishing innovation ecosystem.
In 2024/25, the industry generated £13.2 billion in revenue, contributed £7.8 billion in GVA, and employed 67,300 people across more than 2,100 companies — an 11% increase in jobs and a 12% rise in revenue year-on-year. Analysts project the market will reach £21.5 billion by 2030, underlining its growing role in the UK economy.
Cybersecurity is one of six frontier technologies in the UK's Digital and Technologies Sector Plan, part of the broader Modern Industrial Strategy. The Cyber Growth Action Plan, developed with Imperial College London and the University of Bristol, outlines a roadmap to accelerate growth, strengthen national resilience, and drive innovation.
Key priorities include enhancing cyber leadership, supporting regional clusters, and aligning growth with resilience to create a “virtuous cycle” of innovation and protection.
The UK is also setting a global benchmark for cyber standards, with new measures to improve the security of digital products and services, reduce risk, and build trust. These efforts support the UK’s ambition to be a world leader in cybersecurity, complementing investment in regional clusters and national programmes like CyberFirst and the National Cyber Strategy.
Implications for office space and regional growth
This strategic focus is reshaping regional office markets. Cities such as Manchester, Cheltenham, and Bristol are emerging as cyber hubs, supported by strong university links, growing tech ecosystems, and targeted public investment.
In Manchester, the new government tech campus housing GCHQ and DSIT is catalysing demand in areas like Mayfield and New Bailey, where firms seek secure, flexible, and well-connected space. The sector’s expansion is also diversifying the occupier base. Legal and financial tenants are now sharing space with cyber start-ups, scale-ups, and spinouts.
This is driving demand for buildings with robust digital infrastructure, ESG credentials, and flexible leasing models. Managed workspace providers are responding with secure, tech-enabled environments tailored to cyber and AI firms.
Government-backed initiatives like the NCF HQ in Lancashire and Golden Valley Development in Cheltenham are further fuelling demand for office and lab space. As the sector grows, the intersection of cybersecurity and real estate is creating new opportunities for landlords, developers, and investors — particularly in regions aligned with the UK’s cyber growth strategy.
Cybersecurity firms drive regional demand and innovation in digitally resilient office space
Cybersecurity is fast becoming a cornerstone of the UK’s digital economy, and this is reflected in both regional office take-up and the growth of university spin-outs. Together, they’re reshaping the occupier landscape and driving demand for secure, flexible, and compliance-ready office environments.
At the top end, BAE Systems Digital Intelligence maintains secure offices in Gloucester, Manchester and London, chosen for proximity to defence and government partners. These hubs support national infrastructure protection, secure systems engineering, and cyber threat intelligence — requiring high-security, digitally resilient buildings.
Regional expansion of cybersecurity companies and real estate implications
The UK’s cybersecurity sector is expanding rapidly beyond London, with major firms growing their regional footprints and driving demand for secure, high-spec office space. Overall, government data suggests that just under half (45%) are based outside London and the South East regions.
Greater Manchester has established itself as a leading UK cybersecurity hub, nurturing homegrown firms such as Avecto, Hedgehog, NCC Group, and Secarma, while attracting global defence giants including Raytheon, BAE Systems AI, and Northrop Grumman. This ecosystem is reinforced by major employers like BeyondTrust, which has over 1,000 staff in the city, and uSecure, which delivers human-centric cyber training from its Manchester base.
Adding to this momentum, SafetyCulture recently secured 10,000 sq ft at Bond — a landmark 19th-century bank transformed into a modern workspace. The office will initially accommodate 60 employees, with the capacity to grow beyond 100 as the company scales.
Elsewhere in the North, Netcompany, the European IT consultancy, took 8,400 sq ft at MEPC’s Grade A office development at Wellington Place, Leeds, in September, underlining continued demand for high-quality space from tech and digital firms.
In the South West, Bristol continues to attract major tech occupiers. Oracle occupies 11,000 sq ft at One Glass Wharf in Temple Quay, a prime location within the city’s growing tech cluster and Enterprise Zone.
Cyber firms are seeking locations that offer talent access, secure infrastructure, and collaborative ecosystems. For real estate, this means rising demand for buildings with resilient digital connectivity and backup systems, especially in cities such as Manchester, Glasgow, Bristol, Leeds, Cambridge and Reading. The clustering of cyber activity is reshaping location strategies and reinforcing the role of real estate in supporting national digital resilience.
Meanwhile, university spin-outs are fuelling innovation across the UK. PQShield, from the University of Oxford, focuses on post-quantum cryptography. KETS Quantum Security, from the University of Bristol, develops quantum-secured communications. CyberHive, linked to the University of Surrey, offers secure cloud and edge computing. These ventures benefit from proximity to research labs, incubators, and funding networks like Innovate UK, Cyber Runway, and SETsquared — often scaling into the same regional hubs as larger firms.
Together, this dual dynamic of strategic expansion and grassroots innovation is driving demand for digitally resilient office space across the UK.
Innovation districts: Driving cybersecurity and tech growth
Innovation districts are becoming pivotal in shaping the UK’s technology and cybersecurity landscape. These districts embed digital infrastructure as a core utility, including secure fibre networks, backup power, and smart building systems.
Manchester’s NOMA and Circle Square exemplify this trend, with the Manchester Tech Incubator hosting high-growth startups in cybersecurity, AI, blockchain, and data science.
Placemaking strategies are central to these ecosystems, fostering collaboration between academia, government, corporates, and startups. Features such as campus-style environments, cyber accelerators, and embedded skills centres create dynamic hubs for innovation.
Bristol’s Engine Shed is a key driver of the region’s cyber innovation cluster. Based at Temple Meads, it brings together startups, scale-ups, investors, and academic partners, hosting initiatives like techSPARK’s Bristol & Bath Cyber network and training programmes such as ‘Confidently Cyber’.
Through curated events, accelerator support, and links to the University of Bristol’s cyber research, Engine Shed helps turn ideas into commercial ventures. Its partnerships with SETsquared, Barclays Eagle Labs, and Geovation strengthen the ecosystem, making it a focal point for collaboration and growth in cybersecurity and emerging tech.
The economic impact is significant: the UK cyber sector is forecast to exceed £20 billion by 2030, with regional cities playing a leading role.
Multi-let, mixed-tenant buildings
Multi-let, mixed-tenant buildings are emerging as strategic solutions for SMEs facing rising cybersecurity demands. With 90% of SMEs adopting AI-driven security tools and 60% citing cybersecurity as their top IT challenge (JumpCloud), these spaces provide access to enterprise-grade IT infrastructure, compliance frameworks, and secure environments — critical for firms without in-house IT teams. Cost-sharing models, flexible leases, and scalable space further enhance their appeal.
Secure infrastructure is now a key factor in location and leasing decisions. Certifications such as WiredScore and SmartScore are becoming standard benchmarks, as occupiers prioritise digital resilience alongside sustainability and connectivity.
As cybersecurity becomes integral to national competitiveness and economic resilience, its influence on real estate strategy will deepen, positioning innovation districts as essential drivers of growth.
University courses and talent development within the cybersecurity sector
The UK’s cybersecurity sector is experiencing rapid growth, driven by increasing demand for digital resilience across industries. A critical component of this expansion is the development of talent pipelines, particularly through university-led initiatives, spin-outs, and regional cyber clusters.
Cybersecurity education in UK universities has expanded significantly in response to the growing demand for digital protection skills. Over 50 institutions now offer dedicated undergraduate and postgraduate degrees in cybersecurity, many certified by the National Cyber Security Centre (NCSC). These programmes cover areas such as ethical hacking, digital forensics, and cyber law, and are increasingly delivered through degree apprenticeships and industry-linked placements.
Student interest has surged, making cybersecurity one of the fastest-growing areas within computer science. The UK’s cyber sector is now valued at over £10 billion, yet the country faces an estimated annual shortfall of 14,000 cyber professionals. In response, universities have invested in research capacity, employer partnerships, and hands-on training environments to better prepare graduates for the workforce.
Since 2020, the number of cybersecurity graduates has increased by 34%
Talent clustering is another key factor. Regional cities with strong academic institutions, such as Manchester and Bristol, are attracting cyber firms keen to tap into graduate pipelines and research partnerships. The University of Warwick has emerged as a key hub, offering NCSC-certified undergraduate and Master’s degrees in Cyber Security Engineering and Cyber Security Management. Warwick’s strong industry links, hands-on labs, and high graduate employability make it a magnet for cyber employers.
UK universities, more broadly, are playing a pivotal role in cultivating cybersecurity talent. Institutions such as Royal Holloway, Bristol, Glasgow, and Manchester offer specialised degrees that integrate practical training, industry placements, and research-led teaching.
Since the Covid-19 pandemic, the number of cybersecurity-related university courses has risen significantly, with the number of cybersecurity graduates increasing by 34% since 2020.
NCSC’s Academic Centres of Excellence in Cyber Security Education (ACE-CSE) designation is helping to standardise high-quality teaching and promote collaboration. It also supports cyber apprenticeships, bootcamps, and conversion courses — vital for diversifying the talent pool and upskilling mid-career professionals.
Bridging academia and industry
The UK’s cyber clusters — such as Cyber Wales, ScotlandIS Cyber, and Midlands Cyber — act as bridges between academia, startups, and established firms. They facilitate knowledge exchange, host hackathons and career fairs, and support collaborative R&D projects.
The UK’s cybersecurity talent pipeline is being strengthened by this interplay between universities, spin-outs, and regional clusters — creating a robust foundation for future growth and resilience.
Regional cyber ecosystems: the North West and the South West in focus
London remains the UK’s largest cyber hub, underpinned by its global financial centre, deep talent pool, and strong international connectivity. It leads in fintech-cyber convergence, investment, and policy influence. However, the UK’s cyber strength is increasingly shaped by regional ecosystems alongside London’s global hub, driving innovation, resilience, and inclusive growth through strategic partnerships and advanced research capabilities.
The North West and the South West exemplify how place-based investment and cross-sector collaboration are driving resilience, job creation, and global competitiveness across the UK’s cyber landscape.
The North West is the fastest-growing cyber cluster outside London and the leading digital tech city beyond the capital, hosting over 300 companies, including NCC Group, BAE Systems, and BT. Manchester is also home to the UK’s government security agency GCHQ – placing it at the heart of the nation’s IT security effort. The national agency established a strategic hub in Manchester in 2019 and has plans to grow up to 1,000 staff. Its strength lies in embedding cyber capabilities across aerospace, energy and manufacturing, supported by strategic assets such as the NCF HQ in Lancashire, cyber apprenticeships at Sellafield, and advanced computing at the Hartree Centre. Roles in the region are projected to triple to 20,000 by 2035, contributing an estimated £2.7 billion annually.
Driving this momentum, the £4.9 million CyberFocus initiative, led by Lancaster University, unites seven North West universities to accelerate innovation and economic growth, leveraging the region’s cyber corridor and strategic hubs, including GCHQ Manchester and the NCF HQ.
The UK cyber ecosystem should operate as a single team with each place playing to its strengths in support of a common quest for growth
Bristol, with its strong links to aerospace, robotics, and defence, is a key South West hub complementing the region’s innovation strengths.
Cheltenham, anchored by GCHQ, is the UK’s cyber intelligence capital. Its ecosystem is supported by CyNam, Hub8, and the Golden Valley Development, which will deliver a world-class cyber innovation campus. A new £95 million, 116-acre cyber park adjacent to GCHQ is set to expand the town’s role, backed by local and central government.
Cheltenham benefits from deep collaboration between government, academia and industry, and hosts national programmes such as CyberFirst and CyberASAP.
Other important clusters include Reading, which has emerged as a key South East cyber hub, anchored by firms like Proofpoint and a growing base of tech innovators at Green Park. Belfast (rapid start-up growth and academic excellence at Queen’s University), Malvern (defence heritage and thriving SME base), Cardiff (cyber growth alongside fintech and data science) and Glasgow (digital forensics and civic cyber resilience).
Together, these clusters demonstrate how place-based innovation, strategic investment, and institutional collaboration are shaping a geographically diverse and globally competitive UK cyber ecosystem.
Backing the Boom: Investment in UK Cybersecurity
2024 marked the strongest year for UK cybersecurity investment in the past decade, with over £7 billion raised across 211 deals. This included £3.5 billion in M&A activity in Q4 alone, featuring landmark transactions such as Thoma Bravo’s £4.1 billion acquisition of Darktrace, and Sophos’s $859 million acquisition of Secureworks.
Leading players — including Darktrace, Sophos, NCC Group, BAE Systems Digital Intelligence, and BT Security — are shaping the sector, with growing emphasis on AI-driven analytics, quantum-safe cryptography, and secure-by-design solutions, reinforcing the UK’s strategic position in the global cyber economy.
This capital has flowed across the full business lifecycle — from early-stage startups to scale-ups and mature firms — with increasing involvement from both domestic and international venture capital. Private sector interest is being bolstered by a robust pipeline of innovation and a suite of government-backed initiatives designed to accelerate commercialisation and scale.
The UK government has launched several strategic programmes to stimulate cyber innovation. The Cyber Growth Action Plan outlines a national framework to support scaling firms and attract investment. CyberASAP helps commercialise academic research, turning university-based innovations into viable spinouts. Meanwhile, Cyber Runway supports startups and scale-ups through tailored growth and leadership programmes.
To strengthen regional ecosystems, the government has also allocated £1.9 million in cyber resilience funding across 30 local projects, helping to stimulate innovation beyond London and the South East. These initiatives are contributing to a more geographically balanced cyber economy.
The convergence of public funding, academic research and private capital is accelerating the development of cutting-edge solutions in areas such as AI security, threat intelligence and secure infrastructure. As a result, the UK is positioning itself as a global leader in cybersecurity innovation and investment.
Between 2021 and 2025, London, Cambridge, and Lancaster emerged as the UK’s top three destinations for cybersecurity investment, collectively attracting over £13.5 billion. London led with £8.1 billion, reflecting its global tech status, investor depth, and concentration of mature cybersecurity firms. Cambridge secured £4.9 billion, largely driven by a standout £4.8 billion deal in 2024 linked to its deep tech ecosystem and academic strengths.
Lancaster’s £489 million investment in 2025 signals the rise of new regional hubs, supported by the establishment of the NCF and growing public-private interest in decentralised cyber capabilities. Leeds and Bristol also performed strongly, attracting £265 million and £230 million respectively, underpinned by early-stage funding and expanding cyber ecosystems. These patterns reflect a broader shift in the UK’s cybersecurity investment landscape, where regions with national security assets, specialist VCs, and strong university pipelines are increasingly attracting capital.
While London remains dominant, the rise of regional centres like Lancaster and Cambridge highlights the impact of strategic government initiatives, innovation campuses, and targeted funding in shaping geographically diverse cyber clusters. This decentralisation is helping build a more resilient and inclusive national cyber ecosystem, with investment flowing into both established and emerging hubs.
Looking forward – implications for office space and regional growth
Expansion into regional cities is fuelling a new wave of demand for digitally resilient office space across the UK.
Companies want places that can handle advanced connectivity, strong cybersecurity and compliance requirements. It’s not just about desks and meeting rooms anymore — secure fibre, backup power, and smart systems are becoming standard.
This shift is being driven by innovation and the need to protect data, meet regulations and stay competitive.
Larger cybersecurity firms are securing strategic sites near government and defence partners to strengthen operational ties, ensure proximity to national infrastructure, and access specialist talent pools. At the same time, spin-outs emerging from academic hubs such as Cambridge, Lancaster and Manchester are scaling into flexible, secure environments that support innovation, compliance and rapid growth while fostering collaboration with research institutions.
These dynamics reflect a maturing cyber ecosystem — one that blends operational scale with research-led agility and positions regional cities as critical nodes in the UK’s digital infrastructure.
This decentralisation is not only diversifying the geography of cyber activity but also reshaping the commercial real estate requirements of the sector, creating opportunities for adaptive reuse and tech-enabled design.
Looking ahead, the future of office space in cybersecurity will be shaped by the need for high-security environments that can accommodate evolving compliance standards, collaborative research and development, and increasingly AI-driven operations.
Buildings that offer shared cyber infrastructure, flexible leasing models, and proximity to talent and innovation networks will be essential in supporting the next generation of cybersecurity firms.
The UK cybersecurity sector is predicted to grow by 8–12% annually, with employment expected to rise sharply by 2030.
If floorspace demand tracks this growth, the sector could require an additional 3.3 million sq ft by 2030, highlighting the strategic importance of future-proofed, regionally distributed workspace.
This estimate does not account for the wider workforce supporting cybersecurity across other sectors such as finance, healthcare, and manufacturing — all of which increasingly rely on embedded cyber expertise and infrastructure.