The UK has significantly expanded its data infrastructure, with four major US firms, CyrusOne, ServiceNow, CloudHQ, and CoreWeave, committing a combined £6.3 billion ($8.2 billion) in investments.
These investments will bring the total value of data centre investment in the UK to over £25 billion ($32.7 billion) since the current Government took office, reinforcing the country’s strategic role in the global digital economy.
The new data centres are expected to power advancements in artificial intelligence (AI) technologies to enable rapid deployment of AI in sectors like healthcare, aiming to improve patient outcomes and overall quality of life.
Commitment to Data Centres as Critical Infrastructure
Technology Secretary Peter Kyle welcomed the announcement, highlighting the Government’s recent steps to recognise data centres as Critical National Infrastructure (CNI), a move that provides long-term reassurance to investors.
“Data centres 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 centres as Critical National Infrastructure, giving the industry the ultimate reassurance the UK will always be a safe home for their investment,” said Kyle.
Kyle added ‘Today’s drumbeat of investment is a vote of confidence in Britain and our approach to work with business to deliver sustained growth for all’.
CloudHQ’s Data Centre Campus in Oxfordshire
CloudHQ, based in Washington DC, is developing a new £1.9 billion data centre campus in Didcot, Oxfordshire. The hyper-scale facility, currently under construction, will address the UK’s increasing demand for AI and machine learning infrastructure.
The project is expected to create 1,500 jobs during the construction phase and 100 permanent positions once operational.
“Our site enables us to build out our campus environment to provide scale and density to meet our users’ requirements,” said Hossein Fateh, Founder and CEO at CloudHQ.
ServiceNow’s Investment in AI and Workforce Expansion
AI-powered platforms and software company, ServiceNow, will invest £1.15 billion ($2.4 billion) in the UK over the next five years. This investment will expand its data centres, enhancing AI capabilities with NVIDIA GPUs for local processing.
The firm also plans to grow its UK workforce beyond its current headcount of 1,000 employees.
“AI-powered transformation is a generational opportunity to champion citizens, empower employees, and delight users. ServiceNow’s investment will accelerate the UK’s innovation blueprint, redefining how people live and work,” said Bill McDermott, Chairman and CEO at ServiceNow.
CyrusOne to Expand UK Operations
Global data centre developer, CyrusOne, has pledged to invest £2.5 billion ($3.2 billion) in the UK, subject to planning approval. The projects, set to be operational by Q4 2028, are expected to generate over 1,000 jobs in the design and construction value chain.
“The UK Government’s recent ‘critical national infrastructure’ (CNI) designation was a strong signal that data centres are of strategic importance to the UK economy,” said Eric Schwartz, President and CEO at CyrusOne.
CoreWeave’s Commitment to UK AI Infrastructure
AI hyperscaler, CoreWeave, has confirmed an additional £750 million ($981.6 million) investment in the UK, following a £1 billion ($1.3 billion) commitment announced in May. This latest investment is aimed at improving the country’s AI infrastructure, supporting the growing demand for cloud services.
“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,” said Mike Intrator, CEO and Co-founder at CoreWeave.
A Growing Hub for AI and Tech Innovation
These new investments are part of a broader wave of capital flowing into the UK’s digital infrastructure. Recent commitments include £10 billion ($13 billion) from Blackstone for projects in the North East and £8 billion ($10.4 billion) from Amazon Web Services for UK-based data centres.