OpenAI Backs UK Data Centre Growth with New Deal

The UK government’s ambition to become a global centre for AI has taken a step forward with a formal agreement signed between OpenAI and the Department for Science, Innovation and Technology. 

The partnership, announced by Technology Secretary Peter Kyle and OpenAI Chief Executive Sam Altman, includes a commitment to explore investments in UK data centres and other infrastructure needed to support the next generation of AI systems.

The collaboration forms part of the UK’s broader AI Opportunities Action Plan, a government-led strategy aimed at driving private sector investment into national compute resources, skills and technology jobs.

Expanding OpenAI’s footprint in the UK

OpenAI will expand its London operations, the company’s first international office, which was opened two years ago. 

The facility houses engineers and researchers working on large language models (LLMs), including ChatGPT. As part of the new agreement, OpenAI has confirmed its intent to deepen its UK presence.

"The expanded London office will create technology jobs in research and engineering, providing support to UK businesses and developers working with AI," says Sam Altman.

“AI is a core technology for nation building that will transform economies and deliver growth. Britain has a strong legacy of scientific leadership and its government was one of the first to recognise the potential of AI through its AI Opportunities Action Plan.”

"Now, it’s time to deliver on the plan’s goals by turning ambition to action and delivering prosperity for all,” adds Sam.

The partnership also includes coordination between OpenAI and the UK’s AI Safety Institute, which is responsible for evaluating the risks and capabilities of frontier AI systems. This information exchange is intended to strengthen government oversight while supporting innovation in regulated environments.

Investing in regional data centre infrastructure

A key element of the partnership is OpenAI’s interest in the UK’s AI Growth Zones: regional hubs designed to accelerate AI development and are backed by £2bn ($2.7bn) in government funding. 

More than 200 locations across the UK have submitted bids to host new data centre and compute infrastructure, with confirmed zones already announced in Scotland and Wales.

The zones aim to concentrate infrastructure such as data centres and research institutions in key regions, driving investment and job creation beyond London and the South East.

OpenAI’s participation could play a pivotal role in the private sector validation the government has been seeking. As the developer of GPT-4o, the multimodal model powering ChatGPT, the company brings a combination of cutting-edge research and practical deployment expertise.

Peter Kyle says the investment marks a broader shift in how technology will be used to solve national challenges.

“AI will be fundamental in driving the change we need to see across the country – whether that’s in fixing the NHS, breaking down barriers to opportunity or driving economic growth,” he says.

“This can’t be achieved without companies like OpenAI, who are driving this revolution forward internationally. This partnership will see more of their work taking place in the UK, creating high-paid tech jobs, driving investment in infrastructure and crucially giving our country agency over how this world-changing technology moves forward.”

Existing AI tech working inside the UK government

OpenAI’s existing presence in the UK includes collaboration with central government teams through applications like Humphrey, the civil service’s internal AI assistant. Powered by GPT-4o, Humphrey supports departments by processing and analysing complex documents, including responses to public consultations.

One of its tools, Consult, can sort and analyse large-scale feedback within minutes, reducing workloads without replacing human policy decision-making. The system is part of the Cabinet Office’s wider use of AI to improve efficiency and support public services.

The new agreement follows the UK’s £500m ($674m) investment in domestic AI capabilities, which aims to ensure British participation in global AI development while building a stronger economic base at home.

By expanding its UK operations and exploring regional data centre projects, OpenAI is aligning itself with a national strategy that ties AI deployment to local infrastructure, skills development and digital sovereignty. 

The partnership underscores how data centre investment is becoming central to government policy on AI growth and resilience.