Microsoft recently announced a significant investment of $30 billion (£22 billion) in the UK, marking what the company’s president, Brad Smith, described as the largest commitment under their current partnership. This investment will be spread over four years and encompasses not only infrastructure for artificial intelligence (AI) but also the company’s operational activities across the country. According to Microsoft, half of this budget will be dedicated to capital expenditures, including costs for equipment and facilities, while the other half will support ongoing operations like research and product development.
As part of this initiative, Microsoft is set to back an AI datacentre project in Loughton, Essex, where it will act as a core customer for the UK-based AI infrastructure firm Nscale. Smith has previously expressed concerns about the UK’s business environment but noted improvements in governmental support, particularly regarding planning permission and energy access.
In a related effort, the UK government plans to develop an AI “growth zone” in the north-east, which would receive specialized support for planning and energy to facilitate the construction of data centres. This growth zone is projected to generate over 5,000 new jobs and attract around £30 billion in investment, although these figures remain tentative. Blyth in Northumberland is set to host a datacentre backed by a £10 billion commitment from investment firm Blackstone, while a site at Cobalt Park will feature a “Stargate” datacentre project aimed at developing localized AI capabilities.
Nvidia, a major player in the AI chip industry, also outlined plans for an £11 billion investment in the UK, focusing on providing powerful AI chips for upcoming projects. Additionally, CoreWeave and Salesforce announced commitments of £1.5 billion and $2 billion, respectively, for UK operations.
The partnership between the US and UK governments aims to promote low-carbon energy solutions to support the burgeoning AI sector. This could involve investments in nuclear power to meet the energy demands of data centres and the broader economy, raising discussions around sustainability and resource management.
Source: https://www.theguardian.com/technology/2025/sep/17/what-is-new-uk-us-tech-deal-ai-supercomputers-investment-economy