Four major US tech companies are investing in the UK’s data infrastructure, signaling a strong economic commitment.
- CyrusOne, ServiceNow, Cloud HQ, and CoreWeave plan to establish substantial facilities across the UK by 2028.
- The data center sector in the UK sees increased investment, now surpassing £25 billion under the Labor government.
- Data centers are being designated as ‘critical national infrastructure’ by the UK government.
- The investment promises a boost in local employment and technological advancement, positioning the UK as a leading hub.
CyrusOne, ServiceNow, Cloud HQ, and CoreWeave have announced significant investments totaling £6.3 billion in the United Kingdom’s data infrastructure. This strategic move comes as a part of the UK’s effort to position itself at the forefront of technology and innovation, highlighted by Prime Minister Keir Starmer’s industrial strategy.
Among the investors, Cloud HQ, headquartered in Washington DC, plans to spearhead the development of a £1.9 billion data center campus in Didcot, Oxfordshire. This project is expected to generate 1,500 jobs during its construction phase and provide an additional 100 permanent positions once operational.
ServiceNow, a globally recognized leader in AI platforms and software, has committed £1.15 billion to enhance its UK operations. The expansion involves scaling up its data center capabilities with advanced Nvidia GPUs to support local data processing and AI development.
The firm CyrusOne anticipates escalating its investment in the UK to approximately £2.5 billion over the next few years, with projects slated for completion by the fourth quarter of 2028, contingent on planning permissions.
CoreWeave, an AI hyperscaler, has earmarked £750 million towards next-generation AI cloud infrastructure for the UK. This substantial investment underlines the UK’s rising prominence as a leader in technological infrastructure.
The government’s decision to classify data centers as ‘critical national infrastructure’ marks the first such move in nearly a decade. This designation equates data centers in importance to essential services such as water, energy, and emergency systems, aiming to attract and secure further investments by offering greater predictability and regulatory support.
The recent months have seen a receptive UK government eyeing potential growth opportunities, particularly with a focus on encouraging the expansion of data centers despite local planning challenges. The economic contribution of cloud computing to the UK was significant, accounting for over £42 billion in 2023, exceeding the country’s automotive manufacturing sector’s output.
The UK is poised to cement its role as a pivotal player in the global data center market, supported by substantial foreign investments and strategic government initiatives.
