Britain strengthens ties with tech giants through a $42 billion investment in data centers and artificial intelligence
Tech Giants Pour Billions into UK's AI and Energy Infrastructure
In a significant move, tech giants are investing heavily in the UK, with a focus on artificial intelligence (AI) and energy infrastructure. Google, OpenAI, Nvidia, and Microsoft are among the companies leading this investment wave, totalling over $110 billion.
Google is expanding its presence in the UK with a new data center in Waltham, Lincolnshire, as part of a $6.8 billion investment package. This expansion is expected to support over 8,250 jobs and help enhance Google's Maps, Cloud, and search tools in the UK.
Meanwhile, OpenAI, in partnership with Nvidia and UK-based Nscale, is developing new AI data centers. The project, which includes a former coal power station in Northumberland, north-east England, will be powered by tens of thousands of graphics cards imported from Nvidia. OpenAI has the potential to scale up to 31,000 graphics cards over time. The project is backed by an additional $13.5 billion in investment from financial firm Blackstone.
Nvidia is also in talks to provide up to 60,000 of its new Grace Blackwell GPUs to the UK, and an additional 120,000 Blackwell GPUs for AI data centers in the UK. Over 20,000 of these GPUs will be invested in the new supercomputer Nscale is developing in Essex. Microsoft is joining the project to provide additional investment.
The UK government is facilitating this investment, announcing new partnerships over the development of nuclear energy. This includes faster licensing for nuclear reactor building and research into commercial fusion power. The government hopes that a lighter approach to AI legislation will attract further investment from technology companies.
This investment comes at a time when the UK's Labour government has been struggling to balance progressive policies with economic growth since spring 2024. The data center development is part of one of the UK's newly designated "AI Growth Zones," which aim to ease the building of data centers and revitalize under-invested areas.
The investment by tech companies also coincides with President Trump's second state visit, with collective investments totalling over $40 billion in the UK. Companies are investing in various sectors such as quantum computing, medicine, space exploration, digital security, among others.
Nvidia CEO Jensen Huang wants to build AI infrastructure across the globe, and Microsoft's UK investment could well be the largest, with over $30 billion promised over the next four years. At least half of this is earmarked for AI infrastructure.
British Prime Minister Keir Starmer hailed the investment as prosperous for both the UK and the relationship between the US and the UK. The investment is expected to boost the UK's AI capabilities and contribute to economic growth, while also supporting the government's efforts to balance progressive policies with economic growth.