Microsoft, Nvidia, and Google Invest Billions in UK AI Expansion

LONDON — Microsoft announced Tuesday a significant expansion of its AI infrastructure in the United Kingdom, earmarking $30 billion for investment by 2028. This commitment signals a major vote of confidence in the UK’s potential as a global hub for artificial intelligence development and deployment.

The investment is divided into $15.5 billion for capital expansion, including data centers and advanced computing resources, and $15.1 billion for ongoing operations within the UK. A key component of this initiative is the construction of what Microsoft claims will be the UK’s “largest supercomputer,” powered by over 23,000 advanced graphics processing units (GPUs). This project is being undertaken in partnership with Nscale, a British cloud computing firm, highlighting the collaborative nature of this endeavor.

Microsoft’s move comes amidst a flurry of similar announcements from tech giants. Nvidia, Google, OpenAI, and Salesforce have all recently revealed multi-billion dollar investments in the UK, bringing the total committed capital to over $40 billion. This concentrated influx of capital suggests a strategic alignment among these companies, each seeking to capitalize on the UK’s talent pool, regulatory environment, and access to the broader European market.

The timing of these announcements coincides with a state visit to Britain by President Donald Trump. While the visit is expected to focus on broader economic and political ties, the tech investments underscore the UK’s continued attractiveness for foreign direct investment, particularly in the burgeoning AI sector.

Microsoft President Brad Smith acknowledged a shift in his perspective on the UK business climate, referencing the company’s previous challenges with regulators regarding the Activision-Blizzard acquisition. “I haven’t always been optimistic every single day about the business climate in the U.K.,” Smith stated. “However, I am very encouraged by the steps that the government has taken over the last few years.” This change in sentiment suggests a more favorable regulatory landscape is enabling these large-scale investments.

A joint agreement between Prime Minister Keir Starmer and President Trump is anticipated to be signed on Wednesday, outlining collaborative efforts in AI, Quantum computing, and Nuclear technologies. This agreement could further incentivize innovation and development in these critical areas, potentially leading to further investment and job creation.

Nvidia has committed £11 billion ($15 billion) in investment in the UK, collaborating with partners Nscale and U.S. infrastructure provider CoreWeave. This partnership aims to establish a robust AI infrastructure ecosystem within the UK.

The investment includes the deployment of 120,000 Blackwell GPU chips in the UK, which Nvidia hails as its largest-ever deployment in Europe. This signifies Nvidia’s strategic intent to make the UK a central node in its global AI computing network.

“This will truly make the U.K. an AI maker, not an AI taker,” remarked David Hogan, Nvidia’s head of enterprise sales for the Europe region, highlighting the company’s ambition to empower the UK’s AI capabilities.

Google has also announced a £5 billion ($6.8 billion) investment in U.K. AI development. This includes the construction of a new data center in Waltham Cross, just north of London, designed to meet the increasing demand for its AI-powered services, spanning Google Cloud, Workspace, Search, and Maps. The company estimates that this investment will generate 8,250 jobs annually within the U.K. business ecosystem.

OpenAI is contributing to the UK’s AI landscape with “Stargate U.K.,” a dedicated UK version of its Stargate AI infrastructure project, collaborating with SoftBank and Oracle. OpenAI plans to deploy up to 8,000 GPUs initially, with a potential expansion to approximately 31,000 GPUs, to promote AI adoption across the UK. Cobalt Park in Newcastle is slated to be the site of the first major development under Stargate U.K.

Salesforce has increased its investment commitment in the U.K. to $6 billion, building upon a previous pledge of $4 billion made in 2023. “We are doubling down on our long-standing commitment to the UK with this significant investment,” stated Salesforce CEO Marc Benioff, emphasizing the company’s confidence in the UK market.

Zahra Bahrololoumi, Salesforce’s U.K. head, emphasized the importance of the U.K.-U.S. relationship, underscoring the broader economic and political context surrounding these investments.