Four major US technology firms are set to invest £6.3bn in UK data centres, reflecting confidence in the nation’s tech sector.
- This investment aligns with PM Keir Starmer’s strategy, highlighting technology as vital for economic development.
- Key contributors include CyrusOne, ServiceNow, Cloud HQ, and CoreWeave, planning completions by 2028.
- The initiative follows substantial commitments from Amazon and Microsoft, pushing total investments over £25bn.
- Data centres are now designated as critical national infrastructures, promising enhanced government support.
In a notable move, four prominent US technology companies have committed to a substantial £6.3 billion investment into the United Kingdom’s burgeoning data centre industry. This major influx of capital underscores a significant vote of confidence in the UK’s tech landscape, aligning closely with Prime Minister Keir Starmer’s agenda to position technology at the forefront of the nation’s industrial strategy.
The companies involved in this large-scale investment include CyrusOne, ServiceNow, Cloud HQ, and CoreWeave, each bringing unique contributions to the table. Some of the newly proposed data centres are anticipated to be operational by 2028, marking a period of considerable growth and expansion for the sector.
This development arrives on the heels of even more extensive commitments from major players like Amazon and Microsoft, boosting the cumulative investment in UK data centres to over £25 billion since the new Labour government assumed office in July. Such substantial financial commitments reiterate the nation’s stable and thriving market for data centres and AI development, as noted by Technology Secretary Peter Kyle. He remarked, “Tech leaders from all over the world are seeing Britain as the best place to invest… Today’s drumbeat of investment is a vote of confidence in Britain.”
Among the investments, Washington DC-based CloudHQ plans to establish a new £1.9 billion data centre campus in Didcot, Oxfordshire, which is expected to generate 1,500 construction jobs and 100 permanent jobs upon completion. Additionally, ServiceNow, a global leader in AI platforms and software, has outlined a £1.15 billion investment to enhance its UK operations, focusing on AI development and expanding its data centres with Nvidia GPUs for processing data locally.
Moreover, CyrusOne intends to escalate its UK investment to £2.5 billion over the upcoming years, with projects projected to be operational by the fourth quarter of 2028, subject to planning permissions. AI hyperscaler CoreWeave has confirmed a £750 million investment to advance its next-generation AI cloud infrastructure.
The UK government recently announced its intention to designate British data centres as ‘critical national infrastructure,’ marking a pivotal development. This move elevates the importance of data centres, placing them alongside essential services like water and energy systems. By providing greater reassurance and support, the government aims to attract additional investments into the UK’s cloud market. Additionally, officials have shown willingness to overrule local planning objections to facilitate public infrastructure projects, reflecting a proactive approach to fostering economic growth.
According to a report by Telecom Advisory Services, the economic impact of cloud computing in the UK was valued at over £42 billion in 2023, representing approximately 1.6% of the GDP, thus surpassing the UK’s automotive manufacturing sector.
The significant commitment of US firms to invest in UK data centres signifies a robust vote of confidence in the nation’s technological and economic prospects.
