UK secures £6.3B in data infrastructure investments
Four major US firms have announced plans to invest a combined £6.3 billion in UK data infrastructure.
The announcement, made during the International Investment Summit, was welcomed by Technology Secretary Peter Kyle as a “vote of confidence” in Britain’s approach to partnering with businesses to drive growth.
CyrusOne, ServiceNow, CloudHQ, and CoreWeave have all committed to substantial investments, bringing the total investment in UK data centres to over £25 billion since the current government took office. These new facilities will provide the UK with increased computing power and data storage capabilities, essential for training and deploying next-generation AI technologies.
“Tech leaders from all over the world are seeing Britain as the best place to invest with a thriving and stable market for data centres and AI development,” stated Kyle.
The largest single investment comes from Washington DC-based CloudHQ, which plans to develop a £1.9 billion data centre campus in Didcot, Oxfordshire. This hyper-scale facility is expected to create 1,500 jobs during construction and 100 permanent positions once operational.
ServiceNow has pledged £1.15 billion over the next five years to expand its UK operations. This investment will support AI development, expand data centres with Nvidia GPUs for local processing of LLM data, and grow the company’s UK workforce beyond its current 1,000 employees. ServiceNow also plans to offer new skills programmes to reach 240,000 UK learners.
ServiceNow’s AI platform is already utilised by 85% of Fortune 500 companies and more than half of the FTSE100. In the UK, the company works with organisations including BT Group, Aston Martin Aramco Formula One Team, and hundreds of public sector bodies such as the NHS and the Department for Work and Pensions.
Rachel Reeves, Chancellor of the Exchequer, commented: “This investment is a huge vote of confidence in the UK’s tech and AI sector, and is exactly the kind we want to see as we grow the economy. That’s what the International Investment Summit is all about too. Showing global investors and business that Britain is open for business.”
CyrusOne, a leading global data centre developer, announced plans to invest £2.5 billion in the UK over the coming years. Subject to planning permission, their projects are expected to be operational by Q4 2028 and create over 1,000 jobs.
AI hyperscaler CoreWeave confirmed an additional £750 million investment to support the next generation of AI cloud infrastructure, building on its £1 billion investment announced in May.
These investments follow recent commitments from other tech giants, including Blackstone’s £10 billion investment in the North East of England and Amazon Web Services’ plan to invest £8 billion in UK data centres over the next five years.
The UK government has been actively supporting the growth of data infrastructure and the broader tech sector. Last month, data centres were classified as ‘Critical National Infrastructure’ (CNI), providing the industry with greater government support. Additionally, the Tech Secretary appointed entrepreneur Matt Clifford to develop an AI Opportunities Action Plan, aimed at boosting AI adoption across the economy.
As part of the ongoing International Investment Summit, Prime Minister Keir Starmer is bringing together 300 industry leaders to catalyse investment in the UK. The summit will see discussions on how the UK can capitalise on emerging growth sectors including health tech, AI, clean energy, and creative industries.
Bill McDermott, Chairman and CEO of ServiceNow, said: “The UK is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities.
“Our investment accelerates the UK’s push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the UK are delivering a future where technology benefits everyone.”
The series of investments and government initiatives bolstering UK data infrastructure aims to secure the country’s leadership in AI and technology innovation within Europe, and reinforces it as an attractive destination for international tech companies seeking to expand their operations.
(Photo by Freddie Collins)
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