US tech firms including Microsoft, Nvidia and OpenAI are to invest up to £30bn in the UK, creating thousands of jobs in a new ‘AI Growth Zone’, the government has announced.
In the latest investment announcement to coincide with US President Donald Trump’s state visit this week, Microsoft said its new £22bn investment in the UK’s AI sector was the largest outside of the US and should significantly boost the UK economy.
If follows Google’s announcement yesterday that it is investing £5bn in a data centre in Waltham Cross, creating more than 8,000 jobs, and a fresh wave of investment announced by UK and US companies in nuclear power, creating thousands of jobs.
Tech investment
Google to create 8,250 AI jobs as part of £5bn UK investment
Thousands of jobs to be created in nuclear deals with the US
An “AI Growth Zone” at Blyth and Cobalt Park, near Newcastle, will create more than 5,000 new jobs. The AI Growth Zone will generate growth opportunities across the region, capitalising on access to low-carbon and renewable energy and world-class universities.
Blackstone has already committed £10bn into the Blyth, with the new designation of an AI Growth Zone providing the potential for an additional £20 billion in investment from future partners.
Separate from the Blackstone investment, British firm Nscale, OpenAI and Nvidia will partner to establish Stargate UK to deliver new AI infrastructure in the UK, developing a platform designed to deploy OpenAI’s technology in the UK.
The first phase will see OpenAI take up to 8,000 GPUs – computer chips which are the building blocks of AI technology – to support AI adoption across the UK early next year, with the possibility to expand to approximately 31,000 GPUs over time.
Technology secretary Liz Kendall said: “This is great news for the North East and the people who live there. This investment will create thousands of high-quality jobs, boost skills and inspire the creation of new firms.
“The North East’s industrial legacy is evolving into a future of innovation – unlocking a potential £30 billion and powering communities with the skills and careers to lead the UK’s next industrial revolution.”
AI Growth Zone
The region’s mayor Kim McGuinness said: “Today’s announcement of an AI Growth Zone places the North East at the forefront of the next technology revolution and will lead to billions of pounds of new investment in our region, thousands of better jobs and new opportunities for local people.
“I want kids in school here today to see their place in an AI-driven future. We know AI will be transformative for our economy, but this is how we make sure it also provides a new future for our young people, by working with business to create training and apprenticeship routes into this fast-growing sector on a whole new scale.”
Microsoft will also be involved in the creation of a powerful new supercomputer in Essex, collaborating with UK-based company Nscale.
CEO Satya Nadella told the BBC of the tech’s potential impact on economic growth. “It may happen faster, so our hope is not 10 years but maybe five,” he said. “Whenever anyone gets excited about AI, I want to see it ultimately in the economic growth and the GDP growth.”
Nscale chief executive Josh Payne said: “We’re delighted to announce Nscale’s commitment to UK AI infrastructure today, including through Stargate UK and building the most powerful supercomputer in the country with Microsoft.
“As a UK-based company, we’re showing how we can be makers, not takers, of the most important technology of our time.”
At Cobalt Park, within the AI Growth Zone, thousands of cutting-edge computer chips are expected to be rolled out by Nscale, with OpenAI poised to be the first company to then harness their abilities.
OpenAI
Sam Altman, CEO of OpenAI, said: “The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users, and a government that quickly recognised the potential of this technology.
“Stargate UK builds on this foundation to help accelerate scientific breakthroughs, improve productivity, and drive economic growth. This partnership reflects our shared vision that with the right infrastructure in place, AI can expand opportunity for people and businesses across the UK.”
“This is a key part of the government’s vision for AI Growth Zones is using more clean energy, which is abundant in the North East with its existing wind farm infrastructure, plans to develop solar energy sources and greater battery storage capacity.”
The AI Growth Zone will increase its energy capacity to 1.1GW in the next six years – making it one of the biggest data centres in Europe and creating thousands of new jobs.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
HR roles in technology on Personnel Today
Browse more HR roles in technology
