AI Opportunities Action Plan: Data Centres Will Be Essential

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The UK government announces big investment in AI
Leading data centre companies like Vantage Data Centers and Nscale will be essential to the UK government’s billion-pound AI infrastructure commitment

The UK government has unveiled an AI investment programme backed by £14bn in private sector funding, with data centre operators central to the strategy.

Announced this morning, the AI Opportunities Action Plan has garnered the strong support of leading technology firms, which have already invested £14bn (US$17.8bn) into a range of projects, creating 13,250 jobs.

Data centre developer Nscale plans to construct an AI-focused facility in Essex by 2026, while Vantage Data Centers, which operates facilities across four continents, has committed to expanding its UK presence.

The investment forms part of a broader £25bn (US$30bn) AI commitment announced at the International Investment Summit in 2024, with infrastructure providers positioning themselves to meet growing compute demands.

Global competition is driving UK AI investment

Research from professional services firm PwC estimates AI could add US$15.7tn to the global economy by 2030, with the People’s Republic of China and the US leading in patents and research output.

Data centre developer Nscale plans to construct an AI-focused facility in Essex by 2026, while Vantage Data Centers, which operates facilities across four continents, has committed to expanding its UK presence.

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The investment forms part of a broader £25bn (US$30bn) AI commitment announced at the International Investment Summit in 2024, with infrastructure providers positioning themselves to meet growing compute demands.

Global competition is driving UK AI investment

Research from professional services firm PwC estimates AI could add US$15.7tn to the global economy by 2030, with the People’s Republic of China and the US leading in patents and research output.

“The UK's AI Opportunity Action Plan is a clear-sighted and ambitious policy initiative to establish the UK as a global AI leader. Delivering these commitments can boost economic prosperity, enhance public services and foster the growth of a thriving startup ecosystem.”

Vice President Enterprise, EMEA at Nvidia, David Hogan

China has committed to AI development through 2030, while the US has increased federal research funding. The European Union has introduced the AI Act, establishing regulatory standards for development.

In the UK, US technology infrastructure firm Kyndryl plans to establish a technology hub in Liverpool, creating 1,000 jobs focused on AI implementation over three years.

Science and Technology Secretary Peter Kyle says: "AI has the potential to change all of our lives but for too long, we have been curious and often cautious bystanders to the change unfolding around us. With this plan, we become agents of that change."

Science and Technology Secretary Peter Kyle says: "AI has the potential to change all of our lives but for too long, we have been curious and often cautious bystanders to the change unfolding around us. With this plan, we become agents of that change."

Peter Kyle, Science and Technology Secretary (image credit: GOV.UK)

The government plans to establish specialised AI Growth Zones, beginning in Oxfordshire's Culham region. These zones will feature expedited planning processes for technology infrastructure development.

The technology secretary indicates future zones will target regions with existing power infrastructure capable of supporting the high-density computing loads required for AI workloads.

Early applications of AI in the public sector demonstrate the infrastructure requirements. Cabinet Office Minister Pat McFadden points to an AI teaching assistant deployed across England which has reduced lesson preparation time for 30,000 teachers.

"It saves teachers about three-and-half hours a week - gives them their Sunday evening back, if you like, in terms of lesson preparation and classroom preparation," Pat tells BBC Breakfast.

In healthcare, machine learning algorithms support cancer diagnosis through image analysis, requiring significant computing infrastructure to process medical imaging data.

Pat McFadden, Cabinet Office Minister (image credit: GOV.UK)

The government plans to create a National Data Library to secure public data and establish an AI Energy Council, led by Peter and Energy Secretary Ed Miliband, to address power requirements for AI computing infrastructure.

The importance of delivering regional AI

The UK's strategy includes investment in high-performance computing capabilities, marking a shift from previous policies. The Labour government had cancelled plans for a supercomputer at Edinburgh University but now recognises the need for advanced computing infrastructure.

The plan implements 50 recommendations from AI adviser Matt Clifford's review of Britain's AI capabilities.

Shadow Science Secretary Alan Mak criticises the approach, arguing economic policies could undermine the initiative's goals. "Labour's economic mismanagement and uninspiring plan will mean Britain is left behind," he says.

Peter Kyle emphasises the importance of developing domestic AI capabilities, noting that while the UK has produced companies like DeepMind, a machine learning research firm known for developing game-playing AI systems, many end up under foreign ownership.

Pat acknowledges the need to balance innovation with safety concerns, particularly following controversies such as inaccurate AI-generated news alerts. "We've got to have an eye on safety as well as opportunity," he says, adding that opting out of AI development would mean losing ground to other nations.

Alan Mak, Shadow Science Secretary

Peter Kyle emphasises the importance of developing domestic AI capabilities, noting that while the UK has produced companies like DeepMind, a machine learning research firm known for developing game-playing AI systems, many end up under foreign ownership.

Alongside this, Pat acknowledges the need to balance innovation with safety concerns, particularly following controversies such as inaccurate AI-generated news alerts. "We've got to have an eye on safety as well as opportunity," he says, adding that opting out of AI development would mean losing ground to other nations.

Vice President Enterprise, EMEA at Nvidia, David Hogan

Prime Minister Sir Keir Starmer expresses confidence in AI's economic potential, stating the technology "will drive incredible change" and "has the potential to transform the lives of working people."

"At the moment, we don't have any frontier conceptual, cutting-edge companies that are British-owned," Peter Kyle tells the BBC. "We want to keep all of those ingredients that enable that kind of scale of innovation and investment to exist in Britain."

David Hogan, Vice President Enterprise, EMEA at Nvidia, says: "The UK's AI Opportunity Action Plan is a clear-sighted and ambitious policy initiative to establish the UK as a global AI leader. Delivering these commitments can boost economic prosperity, enhance public services and foster the growth of a thriving startup ecosystem."


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