Microsoft has unveiled plans to invest £22 billion (approximately $30 billion) in the United Kingdom to enhance AI infrastructure and support ongoing operations from 2025 through 2028. A substantial portion of this investment, $15 billion, is earmarked for building a supercomputer designed to meet the growing demand for AI technology.
Brad Smith, Microsoft’s vice chair and president, highlighted the significance of this investment during a press briefing covered by Technology News. He stated, “This will amount to over two-thirds of the total investment announcements in the UK tech sector made this week. We prioritize our financial commitments and assure investors of the integrity behind each pound of this investment.”
In his remarks, Smith appeared to contrast Microsoft’s initiative with Google’s recent announcement of a £5 billion (around $6.8 billion) investment for UK AI projects. He emphasized that Microsoft’s new investment is significantly larger than its prior commitments made in 2023.
Smith noted, “This will enable us to construct the largest supercomputer in the country, featuring over 23,000 advanced GPUs, in collaboration with Nscale. Our investments extend beyond financial resources and involve partnerships with UK companies, which include our existing data centers and their expansion.”
Microsoft’s announcement coincides with President Donald Trump’s second state visit to the UK, marking a moment of strengthened US-UK cooperation. Smith clarified that the investment was not prompted by the Trump administration but acknowledged the favorable timing within the context of UK government relations.
This extensive commitment from Microsoft reflects a shift from previous tensions with UK regulatory bodies. During Microsoft’s high-profile acquisition of Activision Blizzard in 2023, Smith expressed serious concerns following the UK Competition and Markets Authority’s (CMA) initial block on the merger. He had stated that his faith in the UK’s business environment had been “severely shaken,” even claiming that the European Union presented a more favorable landscape for business. However, he later described the CMA’s approach as “tough and fair” and indicated a willingness to revisit his previous comments.
In his briefing, Smith commended both the governments of former Prime Minister Rishi Sunak and current Prime Minister Keir Starmer, stating, “Our capacity to commit to this sizable investment is significantly influenced by the government’s initiatives to reform planning processes, enhance electric capacity, and promote a more stable regulatory framework.”
Simultaneously, Google announced the opening of a new data center in Waltham Cross, Hertfordshire. Chancellor Rachel Reeves characterized this move as a “strong vote of confidence” in the UK economy and the US partnership. Microsoft subsequently garnered attention by securing a mention from Starmer regarding its investment, to which he referred as another “powerful vote of confidence” in the UK’s commitment to advancing AI and innovative technology.
The remaining portion of Microsoft’s $30 billion investment will fund its ongoing operations in the UK, which supports its workforce of 6,000 employees based in the country. While Microsoft shuttered its 21,000-square-foot flagship store in central London earlier this year, the company continues to operate offices at various locations including Microsoft Research in Cambridge, its UK headquarters in Reading, Microsoft AI in London, among others.
