Microsoft to invest £2.5bn in UK for AI development

30 Nov 2023

Image: © QQ7/Stock.adobe.com

The largest ever investment by Microsoft in the UK, the move will see the creation of new data centres across London and Cardiff and new research partnerships.

Microsoft will invest £2.5bn in the UK over the next three years to expand its AI data centre footprint in the country and foster research in the emerging technology.

The investment will see Microsoft bring more than 20,000 of its most advanced graphics processing units (GPUs) to the UK by 2026, which will fuel the country’s progress in the development of machine learning and AI models.

Announced today (30 November), the move represents Microsoft’s largest-ever investment in the UK since it first set up shop in the country four decades ago, which will see the creation of new data centre sites across London, Cardiff and potentially northern England.

“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,” said prime minister Rishi Sunak, who has been trying to ensure the UK plays a leading role in the global AI race.

“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.”

Earlier this month, Sunak hosted the world’s first major AI Safety Summit in the UK to promote greater international collaboration on the emerging technology. This led to the Bletchley Declaration, an agreement between the world’s major powers to work together in regulating AI.

‘Prioritised access’ to AI tools

As well as setting up new data centre sites in the UK, the Microsoft investment will also support AI research in the country by extending its accelerating foundation models research (AFMR) programme to include “prioritised access” to GPUs for the science and research community.

The AFMR programme is a multidisciplinary global research initiative that explores research topics such as alignment and safety issues concerning AI.

The programme includes researchers from some of the leading institutions in the UK, including the University of Oxford, University of Cambridge, Imperial College London, University College London, University of Bath and University of Nottingham.

Microsoft said in a statement it will also invest millions to train 1m people with the skills they need to “build and work with AI”, including training for people looking to start or pivot to a career that requires knowledge of the technology.

Brad Smith, president and vice-chair at Microsoft, said that the company is committed to ensuring that the UK as a country has “world-leading” AI infrastructure, easy access to the skills people need and “broad protections” for safety and security.

“The pace of change in AI demands action today to build a prosperous future for the UK tomorrow. Today marks the single largest investment in our more than 40-year history in the UK,” added Clare Barclay, CEO of Microsoft UK.

“As business and the public sector embrace the AI opportunity, we are building the infrastructure that will support the growth they need, training the people who can deliver it responsibly and securing our society against emergent threats.”

Just last week, UK chancellor of the exchequer Jeremy Hunt announced several funding boosts in the science and tech industries, with a particular focus on AI supercomputing.

Hunt said the UK will benefit from a £500m investment in AI supercomputing over the next two years, aiming to make the country “an AI powerhouse”.

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Vish Gain is a journalist with Silicon Republic

editorial@siliconrepublic.com