Tech firms invest £6.3 billion in UK data centres

Four prominent American technology firms have unveiled significant investment plans totalling £6.3 billion aimed at strengthening data centre infrastructure within the United Kingdom. These plans, publicised at the Government’s International Investment Summit held on Monday, have been welcomed by the UK’s Science and Technology Secretary, Peter Kyle, as a substantial endorsement of the nation’s role in the global tech landscape.

The four companies—CyrusOne, ServiceNow, CloudHQ, and CoreWeave—are set to embark on diverse projects ranging from constructing new data centres to expanding office facilities, driven by an increasing global appetite for computing resources to support burgeoning artificial intelligence initiatives.

CloudHQ is spearheading its UK investment with the development of a £1.9 billion data centre located in Didcot, Oxfordshire. The construction phase is expected to generate approximately 1,500 jobs, with an additional 100 permanent roles once operational.

Moreover, ServiceNow is committing £1.15 billion over five years to expand its UK footprint. This investment encompasses the enhancement of data centres and office spaces, as well as the introduction of new skills programmes designed to cultivate local talent. ServiceNow plans to equip its London and Newport data centres with Nvidia GPUs, critical for processing large language models (LLMs). Furthermore, the company aims to train 240,000 UK learners in AI and digital skills by 2027.

CyrusOne has declared plans to inject £2.5 billion over the next few years, focused on constructing new data centre facilities, whereas CoreWeave announced an additional £750 million investment, following up on their prior commitment of £1 billion aimed at launching their European headquarters in London.

These substantial investments come in the wake of the UK Government’s decision to categorise data centres as critical national infrastructure (CNI). This new status aligns data centres with essential services like water and energy, offering them heightened support and security. Eric Schwartz, Chief Executive of CyrusOne, acknowledged this move as a “strong signal” that bolstered the company’s confidence in expanding within the UK.

The recent investments add to a series of significant commitments from global players. In the previous month, Blackstone, a major investment firm, announced a £10 billion project to establish Europe’s largest AI data centre in Blyth, Northumberland. Earlier this year, Amazon Web Services (AWS) also announced plans for an £8 billion investment over the next five years aimed at building and maintaining data centres across the UK.

In comments made during the summit, Peter Kyle reiterated the importance of data centres and their role in powering daily life while supporting innovation in growth sectors like AI. He emphasised the UK as a stable and thriving environment for tech investment, crediting the latest announcements as testament to Britain’s favourable investment climate.

ServiceNow’s CEO, Bill McDermott, further highlighted the role of their investment in advancing AI-driven innovation across the UK, stressing the importance of leveraging AI to enhance community engagement and improve experiences. The company also pledged $1.5 million in grants over five years to UK charities focused on initiatives like sustainability and disaster relief, underscoring a commitment not only to business growth but also to societal contributions.

The cumulative effect of these investments underscores the UK’s growing attractiveness as a hub for technological advancement, particularly within the AI sector. Chancellor of the Exchequer Rachel Reeves underscored this sentiment, celebrating the investments as a robust indication of confidence in the UK’s tech and AI industry.

Source: Noah Wire Services