Microsoft Bolsters UK AI with £2.5B Investment
The Chancellor has praised Microsoft’s £2.5 billion investment in AI infrastructure and skills, stating that it will be crucial for future growth and innovation in the UK. The investment is expected to position the country as a leader in science and technology.
As part of its commitment, Microsoft plans to more than double its datacentre presence in the UK and train over one million individuals for the AI economy. The company will also collaborate with the government and leading universities to support AI safety and research initiatives.
Over the next three years, Microsoft will allocate £2.5 billion to expand its next-generation AI datacentre infrastructure. By 2026, the company aims to bring more than 20,000 advanced Graphics Processing Units (GPUs) to the UK, which are essential for machine learning and AI model development.
This investment represents Microsoft’s largest in the UK in its 40-year history. The company intends to expand its AI infrastructure in London and Cardiff, and potentially in other regions of northern England. The move is aimed at meeting the increasing demand for efficient, scalable, and sustainable AI-specific computing power. Datacentres play a crucial role in processing, hosting, and storing vast amounts of digital information required for AI model development.
The announcement of the £2.5 billion commitment coincided with the unveiling of £29.5 billion of investment in innovative sectors by Prime Minister Rishi Sunak at the Global Investment Summit. The UK’s tech ecosystem is already the leading one in Europe, with a value that surpasses Germany’s by twofold and France’s by threefold. Additionally, the AI sector contributes £3.7 billion to the country’s economy and employs 50,000 people nationwide.
During a visit to one of Microsoft’s new datacentre facilities in North London, the Chancellor expressed his approval of the investment. He was accompanied by Microsoft Vice Chair and President Brad Smith, as well as Microsoft UK CEO Clare Barclay.
Prime Minister Rishi Sunak described Microsoft as a pioneer in modern technology and emphasized the significance of the company’s investment in AI infrastructure and development in the UK. He stated that the investment further demonstrates the country’s leading role in expanding the frontiers of AI and harnessing its economic and scientific benefits.
Chancellor of the Exchequer Jeremy Hunt highlighted the UK’s position as a tech hub in Europe, with an ecosystem surpassing the combined worth of Germany and France. He praised Microsoft’s investment as another vote of confidence in the UK as a science superpower. Hunt also mentioned his own commitment to investing £500 million in advanced computing for AI in the Autumn Statement, bringing the government’s total planned investment in compute to over £1.5 billion.
Speaking on behalf of Microsoft, Vice Chair and President Brad Smith underscored the company’s dedication to ensuring that the UK becomes a world leader in AI infrastructure, with easy access to necessary skills and comprehensive safety and security measures. Microsoft UK CEO Clare Barclay emphasized the urgency of taking action today to support the growth of AI and build a prosperous future for the UK.
To support AI research, Microsoft will extend its Accelerating Foundation Models Research (AFMR) program to include prioritized access to GPUs for the UK’s science and research community. The program aims to drive interdisciplinary research on AI alignment and safety, AI applications, and AI-driven scientific discovery. Participating universities include Cambridge, Oxford, Imperial College, UCL, Bath, and Nottingham.
Microsoft will also invest millions of pounds to train one million individuals with the skills needed to work with and build AI systems. The training program, in collaboration with various learning and non-profit partners, will focus on enhancing AI fluency, developing technical skills, supporting AI-driven business transformation, and promoting safe and responsible AI development and usage.
The government’s agreement with tech companies, including Microsoft, on a new Online Fraud Charter was also announced. This agreement aims to crack down on fraudulent activities taking place on digital platforms by implementing measures such as verifying new advertisers and promptly removing fraudulent content. Peer-to-peer platforms for selling items and online dating services will also introduce identity verification mechanisms.
In summary, Microsoft’s £2.5 billion investment in the UK’s AI infrastructure and skills has been welcomed by government officials. The investment is expected to foster growth, promote innovation, and solidify the UK’s position as a science and technology powerhouse. The expansion of AI datacentres and the training of one million individuals will provide the necessary infrastructure and human capital to meet the increasing demand for AI-specific computing power and expertise. With this investment, the UK aims to maintain its leadership in the European tech ecosystem and secure its place as a global AI safety leader.
