UK data center sector to receive multi-billion foreign investment

The Technology Secretary Peter Kyle expressed his enthusiasm today for the significant show of confidence in Britain from US firms CyrpusOne, ServiceNow, Cloud HQ, and CoreWave. These companies have revealed that the UK will serve as the base for their data infrastructure, with a combined value of £6.3 billion.

This investment, unveiled during today’s International Investment Summit, brings the total investment in UK data centres to over £25 billion. It reflects the government’s unwavering commitment to fostering growth through collaboration with businesses.

The establishment of these new data centres will equip the UK with enhanced computing power and data storage capabilities. This infrastructure will be instrumental in facilitating the training and implementation of cutting-edge AI technologies, including sophisticated machine-learning models and algorithms. Ultimately, this will accelerate the integration of AI in crucial sectors such as healthcare, contributing to improved quality of life for all.

CloudHQ, a leading technology company, has announced its plans to develop a cutting-edge £1.9 billion data centre campus in Didcot, Oxfordshire. This state-of-the-art hyper-scale data centre is currently in development and is poised to address the increasing demand for AI and machine learning in the UK. The project is expected to create a substantial economic impact, generating 1,500 jobs during the construction phase and 100 permanent jobs once fully operational.

In addition, ServiceNow has reaffirmed its dedication to the UK market by unveiling its ambitious plans to invest £1.15 billion into its UK business over the next 5 years. This significant investment will not only bolster the advancement of AI in the UK but also involve expanding its data centres with Nvidia GPUs for local processing of data. Furthermore, it will support the expansion of office space as the company anticipates a significant growth in its employee base, which currently stands at 1,000 employees.

CyprusOne, a prominent investor in the UK data centre market, has outlined its intentions to proceed with projects, pending planning permissions, that are expected to be operational by Q4 2028. These ventures are projected to create 1,000 jobs directly as well as within its immediate design and construction value chain.

Lastly, CoreWeave, an AI hyper scaler, has confirmed its second investment in the UK this year, with a substantial commitment of £750 million to bolster the next generation of AI cloud infrastructure. This announcement follows its initial £1 billion investment in May and the establishment of its European headquarters in London. The additional £750 million investment is aimed at meeting the escalating demand for critical AI infrastructure in the UK.

These recent investments build upon other significant developments in the UK’s technology sector. Last month, investment giant Blackstone pledged a monumental £10 billion investment in the North East of England, while Amazon Web Services declared its intention to invest £8 billion in constructing, maintaining, and operating data centres in the UK over the next 5 years.