Microsoft plans to invest $30bn between now and 2028 in building out its artificial intelligence (AI) infrastructure and operations in the UK.
The software giant has described the move as the largest financial commitment it has ever made in the UK, with around half of its proposed investment set to finance the continued expansion of Microsoft’s AI and cloud datacentre footprint.
The other half of the $30bn investment will be used to support Microsoft’s existing operations in the UK, which includes 6,000 employees working on product development, advanced research and keeping the lights on in its datacentres.
The investment will also, Microsoft confirmed, enable Microsoft to build the country’s largest supercomputer – with more than 23,000 NVIDIA Graphics Processing Units (GPUs) – in partnership with UK-based AI infrastructure provider, Nscale.
“This investment is designed not only to meet customer demand, but to strengthen the economic ties that benefit both sides of the Atlantic,” said Brad Smith, vice-chair and president of Microsoft, in a blog post.
“It also marks a significant step forward in the UK-US Technology Partnership, demonstrating how close collaboration is driving progress under the AI Action Plans of president Donald Trump and prime minister Keir Starmer.”
News of Microsoft’s investment coincides with Trump’s state visit to the UK, and the announcement of the Tech Prosperity Deal between the UK and US, which is geared towards accelerating the development of AI, quantum and nuclear technologies.
Trump’s state visit has seen a slew of AI-related infrastructure investments announced in the past couple of days, including the news that Google is opening a hyperscale AI datacentre in Waltham Cross.
The prime minister Keir Starmer described Microsoft’s investment as a “landmark” amount that represents a “powerful vote of confidence in the UK’s leadership in AI” and will ensure the country remains at the forefront of technology innovation for years to come.
“This commitment will not only strengthen our digital infrastructure and support thousands of highly skilled jobs, but also ensure Britain remains at the forefront of global innovation as we deliver on our Plan for Change,” he said. “We are proud to partner with world-leading companies like Microsoft to build a future powered by British ingenuity and ambition.”
Smith said the company’s decision to plough so much additional investment into the UK is down to the government’s commitment to making it easier for overseas firms and tech companies to do business here.
“Our ability to make an investment of this size is based in no small measure on the work the government is doing to reform planning, grow electricity capacity and foster a more stable and open regulatory environment,” said Smith.
“For AI to fully realise its potential, businesses need clarity and predictability in how they can deploy their investments, and people need confidence that these technologies are being developed and deployed responsibly – not just to build trust, but to ensure that those creating and investing in AI have the confidence to continue to do so.”
While Microsoft has announced details of its intentions to invest billions of dollars in the UK, fellow US tech giant Oracle has revealed further details of how it intends to spend the $5bn it has previously committed to spending in the UK.
As such, it has revealed that it has expanded the AI capabilities of its public sector-focused Oracle UK Sovereign Cloud, so that UK government and defence organisations can make full use of AI technologies without risking national security.
