UK Secures £6.3 Billion Boost for Data Infrastructure Investments

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Four major US firms have revealed plans to invest a total of £6.3 billion in the UK data infrastructure.

The announcement, made during the International Investment Summit, was greeted with enthusiasm by Technology Secretary Peter Kyle, who described it as a “vote of confidence” in Britain’s strategy of collaborating with businesses to promote growth.

CyrusOne, ServiceNow, CloudHQ, and CoreWeave have all pledged significant investments, elevating the overall investment in UK data centres to above £25 billion since the current government took office. These new facilities are crucial for enhancing the UK’s computing power and data storage capabilities, which are vital for the training and deployment of next-generation AI technologies.

“Tech leaders from across the globe are recognizing Britain as the premier destination for investment due to its flourishing and stable landscape for data centres and AI advancement,” remarked Kyle.

The most significant investment is being made by CloudHQ, a company based in Washington DC, which plans to establish a data centre campus in Didcot, Oxfordshire, with an investment of £1.9 billion. This massive facility is anticipated to generate 1,500 jobs during its construction phase and create 100 permanent roles once it is up and running.

Additionally, ServiceNow has committed £1.15 billion over the upcoming five years to broaden its operations in the UK. This funding will facilitate AI development, the expansion of data centres equipped with Nvidia GPUs for local processing of LLM data, and an increase in the company’s UK workforce beyond its existing 1,000 employees. Moreover, ServiceNow aims to introduce new skills programmes to benefit 240,000 learners across the UK.

ServiceNow’s AI platform is currently employed by 85% of Fortune 500 firms and over half of the FTSE100 companies. In the UK, the organization collaborates with entities such as BT Group, Aston Martin Aramco Formula One Team, and numerous public sector organizations, including the NHS and the Department for Work and Pensions.

Rachel Reeves, the Chancellor of the Exchequer, shared her thoughts, saying: “This investment represents a significant affirmation of confidence in the UK’s technology and AI landscape, aligning with our aspirations for economic growth. This is precisely the objective of the International Investment Summit—demonstrating to worldwide investors and businesses that the UK is ready for business.”

CyrusOne, a prominent global developer of data centres, has unveiled its intention to invest £2.5 billion in the UK in the coming years. Pending planning permission, the projects are anticipated to become operational by the fourth quarter of 2028 and will generate over 1,000 employment opportunities.

Additionally, AI hyperscaler CoreWeave has disclosed its plans for a further £750 million investment aimed at enhancing the next wave of AI cloud infrastructure, building upon the £1 billion investment it announced in May.

These financial commitments are part of a broader trend, following significant investments from other technology leaders, such as Blackstone’s £10 billion pledge in the North East of England and Amazon Web Services’ strategy to invest £8 billion in UK data centres within the next five years.

The UK government is making significant strides in bolstering data infrastructure and enhancing the tech industry as a whole. Recently, data centres received the designation of ‘Critical National Infrastructure’ (CNI), which opens up more avenues for government support within the sector. Furthermore, the Tech Secretary has appointed entrepreneur Matt Clifford to spearhead the development of an AI Opportunities Action Plan, which aims to promote the adoption of AI throughout the economy.

During the ongoing International Investment Summit, Prime Minister Keir Starmer is convening 300 industry leaders to stimulate investment in the UK. The summit will focus on strategies for the UK to harness opportunities in emerging growth sectors such as health tech, AI, clean energy, and creative industries.

According to Bill McDermott, Chairman and CEO of ServiceNow, “The UK is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities.”

He added, “Our investment accelerates the UK’s push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the UK are delivering a future where technology benefits everyone.”

The recent series of investments and government initiatives aimed at enhancing the UK’s data infrastructure is designed to maintain the country’s position as a leader in AI and technological innovation across Europe. This strategy solidifies the UK’s reputation as an appealing location for foreign tech companies looking to broaden their operations.

(Photo by Freddie Collins)

See also: King’s Business School: How AI is transforming problem-solving

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Tags: ai, artificial intelligence, data, europe, infrastructure, international investment summit, investment, uk, United Kingdom

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