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Tuesday 30 September 2025 9:48 am

Government urged to prioritise UK tech amid US investment surge

By: Saskia Koopman

Tech Reporter

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The call for greater sovereignty comes as US technology companies pledge over £30bn in AI and cloud investments in the UK.
The Nvidia founder and chief executive openly confronted the "AI bubble" debate

UK cloud provider Civo has launched its ‘tech sovereignty agenda’, urging the government to place greater emphasis on domestic technology amid an unprecedented wave of investment from US tech giants.

The agenda calls for a reassessment of the UK’s approach to innovation, advocating for a balance between benefiting from global technology while ensuring that critical digital infrastructure, data, and AI capabilities remain under national control.

Civo chief executive Mark Boost described the initiative as a call to action: “Our tech sovereignty agenda is a call to seize the opportunities of UK tech. The UK’s tech future cannot be entirely outsourced abroad.”

“We need a thriving homegrown ecosystem, protecting our digital infrastructure while harnessing the best of global technology,” he added.

The issue of sovereignty has taken on new urgency in light of geopolitical uncertainty.

Civo’s research indicated that 83 per cent of UK tech leaders are concerned that global developments could undermine control over their data.

The government’s recent ‘chronic risks analysis’ noted that heavy dependence on a small number of global tech companies constitutes a systemic risk, a concern echoed by the Competition and Markets Authority (CMA), which found that competition in key sectors is failing to deliver.

US investment floods UK AI sector

The call for greater sovereignty comes as US technology companies pledge over £30bn in AI and cloud investments in the UK.

Microsoft has earmarked £22bn to build the country’s largest supercomputer and AI infrastructure, while Nvidia and OpenAI are preparing to deploy 120,000 advanced GPUs as part of Project Stargate UK, creating the largest AI computing facility in Europe.

Nvidia chief executive Jensen Huang highlighted the UK’s potential as a global AI hub, emphasising the importance of domestic AI capabilities.

Read more

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Keir Starmer speaking at London Tech Week conference, discussing innovation and technology advancements in the UK.

“We are at the Big Bang of the AI era – and the United Kingdom stands in a Goldilocks position, where world-class talent, research, and industry converge”, Huang told reporters a the time of Trump’s visit.

He outlined the scale of the infrastructure project, noting that the deployment of 120,000 GPUs will support UK startups, research institutions, and companies, generating cumulative revenues of up to £50bn over six years for UK hyperscaler Nscale.

“Sovereign AI is really about building your own AI, taking advantage of your own data… The UK should make every effort to build it”, he added.

While the influx of US investment promises to accelerate AI development, experts warn it could undermine the UK’s control over critical infrastructure and data governance.

Yulin Wang, senior technology analyst at IDTechEx, said that although the US-UK AI pact will boost jobs and economic growth, “it will reduce autonomy in setting digital rules and expose national security to risks”.

Civo’s agenda is designed to ensure that foreign investment complements rather than eclipses domestic innovation, advocating for infrastructure, talent, and intellectual property to remain under UK stewardship.

The UK’s AI ecosystem is already well-positioned for growth.

The country boasts world-class universities, a vibrant startup sector, and a strong industrial base, making it an attractive hub for AI development.

Civo’s ‘tech sovereignty agenda’ seeks to safeguard these advantages while ensuring the UK can compete globally on its own terms.

Boost added: “The UK must ensure its digital destiny is in its own hands. This is not just about technology – it is about national security, economic growth, and global competitiveness”.

Read more

Starmer: Britain must ‘not stick its head in the sand’ on AI

Starmer is set to reshuffle his top team.

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