Microsoft Announces £22 Billion Investment in UK AI Infrastructure
Microsoft has unveiled plans to invest £22 billion (approximately $30 billion) in the United Kingdom to bolster its AI infrastructure and ongoing operations from 2025 to 2028, reports 24brussels.
The investment will allocate $15 billion towards capital expenditures aimed at constructing a supercomputer to meet the growing demand for AI technologies. Microsoft vice chair and president Brad Smith noted that this investment would represent more than two-thirds of the technology sector’s total investment announcements in the UK this week.
“We’re focused on British pounds, not empty tech promises, because it’s easy to have big numbers, but we’ll be good for every cent of this investment,” Smith stated during a press briefing. His remarks came in light of Google’s announcement of a separate £5 billion investment to support the UK’s AI initiatives, indicating a competitive atmosphere in the tech sector.
Smith emphasized that Microsoft’s investment is a “very substantial increase” compared to its previous commitments in the UK, aiming to establish the country’s largest supercomputer, consisting of more than 23,000 advanced GPUs, in collaboration with Nscale.
The timing of Microsoft’s announcement coincided with President Donald Trump’s second state visit to the UK, a move seen as a strategic alignment between the US and UK governments. While Smith clarified that the investment was not a direct request from the Trump administration, its timing aligns well with the UK government’s agenda.
This announcement marks a significant turnaround from Microsoft’s previous grievances with the UK regulatory landscape. In 2023, Smith criticized the UK’s Competition and Markets Authority (CMA) during Microsoft’s attempt to acquire Activision Blizzard, stating that his confidence in the UK had been “severely shaken” due to the CMA’s initial objections.
Since then, Smith has acknowledged improvements under the leadership of both former Prime Minister Rishi Sunak and current Prime Minister Keir Starmer. “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,” Smith remarked.
In addition to Microsoft’s investment, Google announced the opening of a new data center in Waltham Cross, Hertfordshire. Chancellor Rachel Reeves described this move as a robust vote of confidence in the UK economy and the US-UK partnership, with Starmer also commending Microsoft’s investment as indicative of the UK’s leading position in AI and advanced technology.
Furthermore, the remaining portion of Microsoft’s investment will support ongoing operations across the UK, which includes its workforce of 6,000 employees. Although Microsoft closed its 21,000-square-foot store in central London earlier this year, it maintains a strong presence with offices in various locations, including Microsoft Research in Cambridge and its headquarters in Reading.
