£6.3 billion data center investment marks major ‘vote of confidence’ for UK tech industry
Four US firms have announced plans to invest a total of £6.3 billion in data center infrastructure across the UK in a move described by technology secretary Peter Kyle as a ‘vote of confidence’ in Britain.
The deals with CyrusOne, ServiceNow, CloudHQ, and CoreWeave, announced as part of this week’s International Investment Summit, bring the total investment in UK data centers to over £25 billion since the Labour government took office.
“Tech leaders from all over the world are seeing Britain as the best place to invest with a thriving and stable market for data centers and AI development,” said Kyle.
“Data centers power our day-to-day lives and boost innovation in growing sectors like AI. This is why only last month, I took steps to class UK data centers as Critical National Infrastructure giving the industry the ultimate reassurance that the UK will always be a safe home for their investment.”
CloudHQ is planning a new £1.9 billion data center campus in Didcot, Oxfordshire that’s expected to create 1,500 jobs during construction, and 100 permanent jobs once it’s fully operational.
ServiceNow also revealed it will invest £1.15 billion in its UK business over the next five years, expanding data centers with Nvidia GPUs for local data processing and increasing its office space as the company grows its headcount.
Similarly, CyrusOne will boost its investment into the UK to £2.5 billion over the coming years, adding it will create more than 1,000 jobs both directly and indirectly.
“The UK government’s recent ‘critical national infrastructure’ (CNI) designation was a strong signal that data centers are of strategic importance to the UK economy,” said president and chief executive officer Eric Schwartz.
“It has provided CyrusOne with the confidence to continue its expansion in the UK and support the government’s policy ambition to become a center of excellence for digital services, technology innovation and AI.”
CoreWeave’s data center investment marks second UK deal this year
Notably, CoreWeave announced its second investment in the UK this year, pledging £750 million to support the next generation of AI cloud infrastructure – its second largest investment in any country after the US.
“CoreWeave’s multiple investments in 2024 are a mark of our confidence in the government’s commitment to attracting global private investment through the creation of a stable, business-friendly environment,” said CEO and co-founder Mike Intrator.
“We are encouraged by the UK’s strong talent pool, which is reflected in our decision earlier this year to open our European headquarters in London, and priority focus on investing in critical infrastructure, to drive the continued development of the UK’s thriving AI sector.”
The government’s International Investment Summit saw a total of £63 billion of investment announced this week, with the creation of nearly 38,000 jobs.
Business and trade secretary Jonathan Reynolds said the news marks a “major vote of confidence in the UK” and its global appeal.
“We’re determined to deliver economic growth in every part of the UK and these investments, together with our forthcoming Industrial Strategy, will give global businesses the certainty they need as we lead the charge for the innovation and jobs of the future,” he said.
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