Microsoft has committed £22 billion to the UK’s tech infrastructure, with a major focus on building and expanding data centres across the country.
The investment, which is part of a wider £31 billion-plus agreement announced under the UK-US Tech Prosperity Deal, aims to accelerate AI growth, supporting new data centre developments, fostering AI start-ups, and advanced technologies like quantum computing.
Microsoft’s plans include the development of new data centres by 2028, including the UK’s largest supercomputer in Loughton in Essex, in partnership with British AI hyperscaler, Nscale.
The facility will house more than 23,000 NVIDIA graphics processing units, with nearly £11 billion allocated for capital expenditure as part of its largest ever UK investment of £22 billion.
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Other key investments in the US/UK tech deal include AI cloud computing company, CoreWeave’s £1.5 billion commitment to expand its AI data centre capacity in the UK, as well as a partnership with British firm DataVita in Scotland to build one of Europe’s largest AI data centres, powered by renewable energy.
Additionally, global asset manager, BlackRock is investing £500 million in enterprise data centres nationwide, with over £100 million allocated to a data centre expansion west of London.
These investments will meet the growing demand for AI and cloud computing while creating thousands of jobs across multiple industries, including construction.
Microsoft’s vice chairman and president, Brad Smith credited the UK’s growth, including its evolving construction industry, as key to the investment.
“Our ability to make an investment of this size is based in no small measure on the work the UK Government is doing to reform planning, grow electricity capacity, and foster a more stable and open regulatory environment,” he said.
The UK/US tech partnership follows earlier announcements of energy deals between the two countries, aimed at boosting investment, job creation, and fast-tracking construction for the “golden age” of nuclear power.
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