Microsoft has announced a £22 billion (approximately $30 billion) investment in the UK, aimed at enhancing AI infrastructure and operations from 2025 to 2028. This investment includes $15 billion earmarked for capital expenditures to develop a supercomputer to meet growing AI demands.
Brad Smith, Microsoft’s vice chair and president, stated that this investment will represent more than two-thirds of the total technology sector investments in the UK announced during the same week. He emphasized the firm’s commitment to backing this investment with tangible assets rather than mere promises.
This announcement coincided with Google revealing its own £5 billion (about $6.8 billion) investment to support AI efforts in the UK. Smith described Microsoft’s latest commitment as significantly larger than its previous investments made in 2023.
According to Smith, the investment will facilitate the construction of the UK’s largest supercomputer, featuring over 23,000 advanced GPUs, in collaboration with partner Nscale. He reiterated that the investment will also expand existing data centers in the UK.
While the timing of Microsoft’s investment aligns with President Donald Trump’s state visit to the UK, Smith clarified that the investment was not prompted by the Trump administration.
The announcement marks a shift in Microsoft’s narrative regarding its relationship with the UK, especially following criticisms of the UK’s Competition and Markets Authority (CMA) during Microsoft’s attempted acquisition of Activision Blizzard in 2023. Although Smith previously expressed concerns about the UK as a business environment, he has since praised government measures aimed at improving planning and regulatory conditions.
Additionally, Google is opening a new data center in Waltham Cross, which Chancellor Rachel Reeves described as a sign of confidence in the UK economy. Microsoft’s investment also supports its ongoing operations in the UK, where it employs around 6,000 people across various locations.
Source: https://www.theverge.com/news/778881/microsoft-uk-investment-ai-supercomputer