UK secures record £6.3bn data infrastructure boost from US tech giants

In a significant move to bolster the United Kingdom’s data capabilities, four major US tech companies—CloudHQ, CyrusOne, CoreWeave, and ServiceNow—announced a massive investment of £6.3 billion in data infrastructure across the UK. This investment, unveiled during the recent International Investment Summit in London, aims to propel the UK into a leadership position for artificial intelligence (AI) and cloud services, reinforcing the nation’s growing reputation as a digital innovation hub.

The quartet’s plans include establishing new data centre campuses, expanding existing infrastructure, and enhancing cloud capabilities to meet increasing demands from sectors like AI, healthcare, and clean energy. The commitment is seen as a major vote of confidence in the UK’s business climate for technology and its potential to support emerging industries such as AI and digital services.

Major Investments Targeting AI and Digital Growth

CyrusOne, a well-known developer of data centres, has earmarked £2.5 billion for new facilities across the UK, including a vast 90MW campus in Iver, Surrey. The Iver location is strategically significant due to its proximity to London, providing key connectivity benefits and making it an ideal site for large-scale data infrastructure. This campus, which will cover over 63,000 square meters, is expected to become a central hub for data processing and AI development. The company noted that the UK government’s recent move to classify data centres as Critical National Infrastructure (CNI) gave it the confidence to make such a sizable investment. CNI designation brings increased government support and protection, putting data centres on the same strategic footing as essential utilities like water and energy .

CloudHQ, based in Washington, is also making a significant push with its planned £1.9 billion investment in a new data centre campus at Didcot, Oxfordshire. The facility will create 1,500 construction jobs and 100 permanent roles, and is geared to meet the growing demand for AI and machine learning. Hossein Fateh, CEO of CloudHQ, highlighted the importance of infrastructure to support future AI advancements, describing the new Didcot site as a key step in expanding the company’s European footprint .

ServiceNow, a global cloud computing platform provider, has pledged £1.15 billion to enhance its UK data operations. This investment will include expanding their data centres in London and Newport, integrating high-capacity Nvidia GPUs for better AI data processing capabilities. ServiceNow also plans to boost its workforce beyond its current 1,000 employees, adding new office spaces to support this expansion .

CoreWeave, a specialist in AI data infrastructure, will contribute £750 million to the UK’s data sector, adding to its previous £1 billion investment to set up its European headquarters in London. These expansions are expected to meet the rising need for advanced AI technologies, and further establish the UK as a central hub for tech-driven innovations .

A Vote of Confidence in Britain’s Digital Future

The UK government has been actively promoting the country as an ideal location for data centre investments. Peter Kyle, Secretary for Technology and Science, emphasized that this new wave of investment represents a “vote of confidence” in Britain’s thriving market for data centres, cloud services, and AI development. He reiterated that data centres are crucial for everyday life and for boosting innovation across sectors like AI, healthcare, and clean technology. With the recent classification of data centres as CNI, operators like CyrusOne have received assurances about long-term stability and support from the government .

The cumulative investments from these four companies push the total funding for UK data centres to over £25 billion since the current government took office, significantly surpassing previous investment levels, which were considerably lower in comparison. Prime Minister Keir Starmer has also highlighted that these developments are part of a broader strategy to make the UK a leader in digital innovation. Starmer recently engaged in discussions with former Google CEO Eric Schmidt and GSK CEO Dame Emma Walmsley on leveraging AI for economic growth and public service improvements .

Positioning the UK for AI Excellence

This latest investment highlights a burgeoning trend of tech giants turning to the UK to build data capacity and innovation hubs. The International Investment Summit, which attracted top leaders from around the globe, focused on growth areas such as AI, clean energy, and healthcare technologies—all sectors where data infrastructure plays a crucial role. The UK’s designation of data centres as critical infrastructure not only aims to bolster cybersecurity but also strengthens confidence among investors .

Companies like Amazon Web Services (AWS) have also been making moves in the UK market, with AWS committing £8 billion towards new data centres that are set to contribute £14 billion to the UK’s GDP by 2028. These investments will support cloud services, AI development, and data analytics, catering to the growing demand for advanced digital capabilities in sectors such as healthcare, finance, and public services. These expansions are poised to create thousands of jobs across the construction, engineering, and tech sectors—indicating that the investments from US firms are just the beginning of a broader push to establish the UK as a digital leader in Europe .

As the AI landscape rapidly evolves, the establishment of data centres that can handle large-scale processing and storage is key. The recent announcements mark a significant milestone, not only in economic terms but also in shaping the digital infrastructure needed to sustain future technological advancements in AI, healthcare, and beyond.