Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Thursday 30 November 2023 4:27 pm

Microsoft’s £2.5bn investment in UK data centres is a ‘turning point’, says Sunak

By: Jess Jones

TMT Reporter

Add as a preferred source on Google
Prime Minister Rishi Suank has described a major investment by Microsoft into UK data centres as a "turning point" for the nation. (Photo by Leon Neal/Getty Images)
Prime Minister Rishi Suank has described a major investment by Microsoft into UK data centres as a "turning point" for the nation. (Photo by Leon Neal/Getty Images)

Prime Minister Rishi Suank has described a major investment by Microsoft into UK data centres as a “turning point” for the nation as it strives to become a science superpower.

The tech giant has committed £2.5bn to building artificial intelligence (AI) infrastructure in the UK, including doubling its data centre space, which is crucial to the development of AI models.

Sunak, who is pushing the UK to be a global leader in technology, said: “Microsoft are one of the founding fathers of modern technology and today’s announcement is a turning point for the future of AI infrastructure and development in the UK.

“The UK started the global conversation on AI earlier this month, and Microsoft’s historic investment is further evidence of the leading role we continue to play in expanding the frontiers of AI to harness it’s economic and scientific benefits,” he added.

Microsoft’s investment aims to provide the UK with over 20,000 of the “most advanced” graphics processing units (GPUs), needed for machine learning, to the UK by 2026.

It will also train one million people with AI skills, giving them the opportunity to gain a professional certificate on generative AI.

Chancellor Jeremy Hunt said: “The UK is the tech hub of Europe with an ecosystem worth more than that of Germany and France combined – and this investment is another vote of confidence in us as a science superpower.”

Read more

Forget Palantir, Microsoft is the government’s real tech problem

At the centre of Microsoft’s pitch is the idea of agents - small, specialised AI systems trained to take on specific security tasks.

Last week Hunt announced a £500m investment into compute as part of his Autumn Statement, which was generally welcomed by tech companies up and down the country.

Microsoft UK chief, Clare Barclay, said the investment is the company’s largest in its 40-year plus history in the UK.

But Ben Barringer, technology analyst at Quilter Cheviot, pointed out that, for Microsoft, this investment is small.

He said: “At just over $1bn per year, this investment pales in comparison to Microsoft’s wider capex budget of $40bn per year. As such, it is a fairly low risk play for Microsoft and is unlikely to move the needle as much as it does for the UK government.

“What it is clearly trying to achieve, however, is a global footprint on AI so when regulation does develop it will be in a very good position,” he added.

It comes after a government minister rejected plans to build a data centre next to the M25 earlier this month, partly because it might ruin the view.

Read more

ICON selects Microsoft as a preferred technology partner to power AI-enabled clinical development

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Politics
  • Tech

Related Topics

  • Microsoft
  • Rishi Sunak

Trending Articles

  • Top Burnham adviser calls for capital gains and inheritance tax hikes

  • A meeting with the breakfast king of Mayfair

  • Housebuilding giants hit with £4.5bn lawsuit for allegedly overcharging buyers

  • As it happened: Stocks jump on defence and metals boost; Oil on track to shed a fifth on US-Iran peace hopes

  • BT tops FTSE 100 after finding new home for international business with Verizon joint venture

More from City PM

  • Forget Palantir, Microsoft is the government’s real tech problem

    Opinion
    At the centre of Microsoft’s pitch is the idea of agents - small, specialised AI systems trained to take on specific security tasks.
  • ICON selects Microsoft as a preferred technology partner to power AI-enabled clinical development

    Business Wire
  • AI data centre race reaches rural Devon as Xlinks eyes £3.6bn campus

    Tech
    Sir Keir Starmer's government has prioritised investment data centres as a major pillar of its plans to boost economic growth.
  • London Tech Week day one: AI talk has come back down to earth

    Opinion
    Keir Starmer speaking at London Tech Week conference, discussing innovation and technology advancements in the UK.
  • AI infrastructure boom helps power Halma to record sales and profit

    Tech
    Halma's revenue was boosted by its environmental and safety businesses.
  • Big Tech’s AI capex splurge can’t go on forever

    AI
    Stack of hundred-dollar bills symbolizing wealth and economic growth in the financial news context
  • UK AI investment hits record £8.3bn as London tightens grip on tech boom

    Tech
    View of City Cluster looking west, February 2026, showcasing urban landscape and modern architecture under clear skies.
  • Britain’s data centres are eating the grid – and we underestimated the damage

    Tech
    Modern data centre with rows of server racks, advanced cooling systems, and high-tech equipment under ambient lighting.

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy