Invezz.com - The UK is rapidly emerging as a global hub for artificial intelligence (AI) and cloud infrastructure, with major tech companies announcing multi-billion-pound investments in the region.
US firms such as ServiceNow and CoreWeave have committed significant resources to expand their operations in the UK. The total investment announced recently amounts to an impressive £6.3 billion, CNBC reported.
ServiceNow to invest $1.5 billion in UK operations
Enterprise software giant ServiceNow is set to invest $1.5 billion in its UK business over the next five years.
The US-based company plans to grow its local presence by expanding office space, hiring additional staff, and localizing data processing for its large language models (LLMs).
With the help of Nvidia (NASDAQ:NVDA) graphics processing units (GPUs), ServiceNow will enhance its data centers in London and Newport to better support LLMs within the UK.
This development aims to meet the increasing demand for domain-specific AI models among British clients and government entities.
CEO Bill McDermott emphasized the significance of this move, stating that the UK is at the forefront of technological transformation and innovation, particularly in AI.
CoreWeave pledges £750 million for AI infrastructure
CoreWeave, a US-based cloud computing firm that rents out GPUs to developers for training large AI models, has announced its second major investment in the UK.
The company will contribute £750 million ($978.6 million) to address the growing demand for AI infrastructure in the country.
This follows an earlier commitment of £1 billion made in May, further cementing CoreWeave’s role in supporting the UK’s expanding AI landscape.
The announcement reflects the company’s strategic focus on establishing the UK as a key location for its global AI operations.
Datacenter investments from US firms hit £4.4 billion
In addition to AI-focused investments, US data center operators CyrusOne and CloudHQ are also backing the UK with substantial financial commitments.
CyrusOne plans to invest £2.5 billion to expand its operations across the UK, while CloudHQ will develop a new £1.9 billion data center campus in Didcot, Oxfordshire.
These projects underscore the increasing demand for robust cloud infrastructure to support the growing AI sector, reinforcing the UK’s position as a critical market for technology development.
The UK government has welcomed these large-scale investments as a vote of confidence in the country’s economic strategy and commitment to AI innovation.
Technology Minister Peter Kyle noted that these investments would deliver sustained growth for all and further solidify Britain’s leadership in AI and technology development.
These announcements were made at the International Investment Summit, where 300 business leaders gathered to discuss foreign investment opportunities under the leadership of Prime Minister Keir Starmer.
These developments underline the UK’s growing role in the global AI landscape, as tech firms continue to recognize the country’s potential for driving innovation and transformation.
UK aims for AI sovereignty with localized data processing
ServiceNow’s decision to localize data processing for its AI models reflects a broader trend toward AI sovereignty in Europe.
Policymakers in the region have increasingly called for technologies and data related to AI to be stored locally, aiming to ensure they align with European values and legal frameworks.
By processing AI data within the UK, ServiceNow is helping to meet these sovereignty goals while addressing the specific needs of UK-based clients and government bodies.
In addition to its financial commitments, ServiceNow plans to implement new skills programs that will reach 240,000 people across the UK.
These initiatives will focus on training the next generation of tech professionals, particularly in AI-related fields, to ensure the country remains competitive in a rapidly evolving global market.
This investment in upskilling highlights the broader impact of foreign investment on the UK’s tech workforce and its potential to drive future economic growth through AI innovation.