Multi-billion foreign investment announced for UK data centres

Four US tech firms have invested more than £6bn in UK data centres, in a “vote of confidence” in the country’s market.

The funding injection will allow the UK to expand data infrastructure, allowing for the testing and deployment next-generation artificial intelligence (AI) technologies such as machine learning models and algorithms, the UK Government said.

It is understood the investment in infrastructure, will accelerate the roll out of AI in areas including healthcare. 

Building on its £1bn investment announced in May and the opening of its European headquarters in London, AI 'hyperscaler' CoreWeave will be investing a further £750m in the UK to support the demand for AI infrastructure.

Mike Intrator, co-founder of CoreWeave said: “CoreWeave’s multiple investments in 2024 are a mark of our confidence in the government’s commitment to attracting global private investment through the creation of a stable, business-friendly environment.

“We are encouraged by the UK’s strong talent pool, which is reflected in our decision earlier this year to open our European headquarters in London, and priority focus on investing in critical infrastructure, to drive the continued development of the UK’s thriving AI sector.”

Global AI platform ServiceNow will invest around £1.2bn in its UK businesses over the next five years, accelerating the country’s “innovation blueprint”, the firm’s chief executive Bill McDermott said.

CyrusOne, which provides sustainable data centre solutions, will invest £2.5bn over the coming years, with the remaining funds coming from software firm Cloud HQ, which already plans to develop a £1.9bn data centre in Oxfordshire.

It is understood the UK Government’s decision to designate data centres as critical national infrastructure last month significantly boosted global investor’s trust.

Eric Schwartz, chief executive at CyrusOne, said, the decision “was a strong signal that data centres are of strategic importance to the UK economy.”

Welcoming the investment, tech secretary Peter Kyle said: “Tech leaders from all over the world are seeing Britain as the best place to invest with a thriving and stable market for data centres and AI development.” 

He added: “Today's drumbeat of investment is a vote of confidence in Britain and our approach to work with business to deliver sustained growth for all.”

The investment was announced as part of International Investment Summit, which is taking place in London today.

The event will hear from experts and see Prime Minister Keir Starmer take part in an “in conversation” event with former chief executive of Google Eric Schmidt as well as chief executive of pharmaceutical and biotech firm, GSK Emma Walmsley, to discuss how the UK can use AI to boost growth, productivity, and fix the public services crisis.

Kyle is also expected to sign a memorandum of understanding with Elderberry, the world’s largest pharmaceutical firm, in a move towards what is claimed to be a world-first trial of obesity medications on the NHS.