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Microsoft Plans Record $30 Billion AI Investment in UK

Vice Chair and President Brad Smith said the plan includes building the UK’s most powerful supercomputer and scaling cloud capacity to meet rapidly growing demand.

Sep 18, 2025
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Microsoft is committing $30 billion between 2025 and 2028 to expand its AI and cloud infrastructure in the UK — its largest-ever investment in the country.

Vice Chair and President Brad Smith said the plan includes building the UK’s most powerful supercomputer and scaling cloud capacity to meet rapidly growing demand.

Breakdown of the investment

Half of the funds — $15 billion — will go toward data centers and AI infrastructure, including a supercomputer with more than 23,000 Nvidia GPUs developed in partnership with Nscale. This expansion will significantly grow Microsoft’s nationwide data center footprint.

The remaining investment will strengthen Microsoft’s UK operations and workforce of 6,000 employees, covering research, AI model development, gaming, data center operations, and customer support. Executives emphasized that the initiative is not only about commercial growth, but also about deepening long-term ties with UK institutions.

Skills, research, and partnerships

Microsoft highlighted its role in training more than one million people in AI skills and noted that its Cambridge and London research hubs are reinforcing the UK’s global position in responsible AI innovation. The company said the project will create skilled jobs, expand partnerships with universities and businesses, and further integrate transatlantic collaboration.

UK–US technology partnership

The deal is closely linked to the UK–US Technology Partnership and the AI Action Plans of President Donald Trump and Prime Minister Keir Starmer. Starmer described Microsoft’s pledge as a “powerful vote of confidence” in the UK’s AI leadership, citing its potential to deliver jobs, infrastructure, and innovation.

Microsoft also credited government reforms in planning, electricity capacity, and regulatory stability for making such a large-scale commitment possible, stressing that predictable rules are essential for long-term AI investment.

Adoption by UK enterprises

Strong enterprise demand underpins the expansion.

  • Vodafone has deployed Microsoft Copilot to 68,000 employees worldwide, reporting productivity gains of four hours per week.
  • Barclays is rolling out Copilot to 100,000 staff, integrating the tool into its internal systems to enhance efficiency.
  • At the London Stock Exchange Group, developers are using GitHub Copilot and Windows 365 to accelerate secure application development.

Frontline for AI

Microsoft’s pledge comes amid a wider surge of US tech investment in the UK. Nvidia and OpenAI are also preparing multi-billion-dollar projects with Nscale, while Google is investing nearly $7 billion in expanding its UK AI infrastructure and has launched new features to support multicloud operations.

Together, these moves help UK in its ambitions to be frontline hub for AI. If American capital and UK innovation can converge successfully, they will have the ability to shape the future of global technology.

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