AI and data centres

The UK is at the forefront of the global AI revolution, positioned as the world's third-largest start-up ecosystem after the USA and China, worth over $1 trillion. With over 5,800 AI companies employing more than 86,100 people, it offers unparalleled investment opportunities. Supporting this growth, the data centre sector is experiencing unprecedented demand, with the UK being home to over 520 data centres and serving as the largest data centre market in Western Europe. Investors can capitalise on strong government backing, world-class talent, pro-innovation regulation and critical infrastructure investment to build transformative AI and data centre capabilities.

Opportunity highlights

Data centres

Data centres enable all AI applications, with global demand projected to triple by 2030 as AI workloads account for 70% of new capacity requirements. The UK hosts over 520 data centres, the largest market in Western Europe, supported by cool climate, reliable energy, strong data protection laws and an experienced data centre focused workforce. Investment opportunities span hyperscale facility development, edge computing infrastructure, cooling systems, sustainable power solutions and heat reuse technologies. The designation of data centres as Critical National Infrastructure and AI Growth Zones provide regulatory certainty and accelerated development pathways.

AI centres

The UK’s AI ecosystem has high potential for company growth, with firms like Salesforce and CUBE having already set up AI hubs in the country. Capitalise on this opportunity and establish an AI centre to explore AI applications, develop business-tailored solutions, improve operations and accelerate development of new products and services.

Sector opportunities

Finance

A £281 billion GVA (gross value added) sector with 75% AI adoption. Capitalise on strong demand for fraud detection, trading, risk, and compliance tools under pro-innovation FCA (Financial Conduct Authority) regulation.

Life sciences

The UK has global AI potential in drug discovery and diagnostics. Companies can leverage NHS (National Health Service) data and get support from the NHS AI Lab and the MHRA (Medicines and Healthcare products Regulatory Agency) AI Airlock.

Creative

Invest in the UK’s world-leading creative industries, driving AI innovation in content creation, editing, and visual effects, boosted by createch growth.

Retail

Harness rapid AI uptake in virtual assistants, chatbots, and supply optimisation across one of Europe’s largest digital retail markets.

Defence

A priority investment area for AI in autonomy, threat detection, intelligence, and cyber defence, backed by NATO and an established industrial base.

Transport

AI solutions target productivity and efficiency through traffic optimisation and connected and automated mobility, with nearly $2 billion in recent investment.

Manufacturing

With £218 billion output and only 36% AI adoption, there are major opportunities in predictive maintenance, digital twins, and automation. This is supported by the UK government’s Made Smarter initiative and the High Value Manufacturing Catapult.

Agriculture

An early-stage opportunity with just 11% tech adoption. AI can boost precision farming, crop yields, and sustainability via agritech innovation.

Infrastructure and construction

Low 13% adoption leaves room for growth in AI applications in design, project management, and predictive maintenance, driven by government infrastructure plans.

Energy

AI can accelerate net zero targets with grid optimisation, forecasting, and renewable integration across wind, nuclear, and carbon capture, utilisation, and storage.

Sports economy

A £53.6 billion GVA market where AI enhances performance, fan engagement, and analytics, fuelling strong commercial growth potential.

Commercial maturity

The UK AI sector demonstrates advanced commercial readiness. Record investment of £2.9 billion in AI companies in 2024, averaging £5.9 million per deal, reflects strong market confidence. British AI companies contributed £11.8 billion to the UK economy in 2024, double the 2023 figure, demonstrating rapid scaling and commercial viability.

Data centre infrastructure shows equally mature commercial deployment. With more than 500 facilities and major multinational investment commitments, supply chains are established and operational models proven. Recent investments by US tech giants like Microsoft and Google demonstrate immediate market demand and investor confidence.

Key UK assets

The UK's AI and data centre infrastructure is distributed across multiple regions, each offering distinct advantages and specialisations.

UK AI Growth Zones

The UK’s AI Growth Zones create a complementary ecosystem that strengthens national capability in advanced computing, research, and AI-driven innovation.

Culham, Oxfordshire

The UK’s first designated AI Growth Zone, with world-leading research centres, including the Culham Centre for Fusion Energy, in the area.

North East

The region combines strong industrial heritage and existing infrastructure with newly awarded Growth Zone status. It provides competitive operating costs, excellent connectivity, and significant land for data-centre development.

South Wales

Home to the CS-connected compound semiconductor cluster, the region offers unique opportunities in semiconductor-enabled computing and next-generation hardware as part of its AI Growth Zone designation.

North Wales

The newest AI Growth Zone is strategically paired with the UK’s first planned Small Modular Reactor (SMR) at Wylfa, positioning the region to meet the high energy demands of AI infrastructure and attract data‑intensive investment.

London

The UK's financial and creative hub hosts the densest concentration of AI companies and early-stage venture capital. Major opportunities exist in fintech AI solutions, creative technology and enterprise software serving global markets. Data centre infrastructure, international talent attraction and access to capital markets make London an attractive destination for AI investments.

North West

A thriving hub for advanced manufacturing, engineering, and retail innovation, the region leverages AI in industrial optimisation, robotics and autonomous systems. Manchester’s dynamic tech ecosystem fuels AI-driven retail, e-commerce, and digital marketing innovation across major firms and startups.

Scotland

Scotland's tech and research excellence, anchored by the University of Edinburgh's Bayes Centre and EPCC supercomputing facility, offers world-leading data science and AI capabilities.

R&D (research & development) capability

The UK hosts a world-leading AI research ecosystem, ranking 1st in Europe and 4th globally for research capacity. Key national centres include the Alan Turing Institute, which drives cross-sector AI and data science collaboration, and the University of Edinburgh’s Bayes Centre, a hub for cutting-edge AI research. Scotland’s Edinburgh Parallel Computing Centre operates the UK’s first national supercomputing centre with internationally recognised HPC expertise. University-led initiatives such as Imperial College London’s I-X and the University of Oxford’s leadership in AI ethics and applied AI further strengthen the research landscape.

The UK Compute Roadmap commits £2 billion to expand national compute capability, including over £1 billion for the AI Research Resource. Additional support comes from the £137 million AI for Science Strategy, UK Research and Innovation’s (UKRI) Technology Missions Fund, the BridgeAI programme, 28 Centres for Doctoral Training, and Innovate UK’s Catapult Network, which provides advanced facilities and technical expertise for commercialisation.

Business and government support

The UK’s AI Opportunities Action Plan lays out the foundations for the future of AI in the country. Investors can benefit from the ongoing development of AI Growth Zones, investments in computing and supportive regulations supporting AI deployment. The UK Compute Roadmap investments outlined above will support infrastructure, talent, compute expansion and adoption.

Businesses can access finance through the National Wealth Fund offering equity, debt and guarantee investment. The British Business Bank is also providing £25.6 billion in expanded financial capacity for start-ups, scale-ups and strategic investment. Further support is available through AI Regulatory Sandboxes that enable businesses to test innovative AI products in controlled environments, supported by the AI Security Institute.

Talent

Capitalise on a globally competitive AI talent, supported by world-class education and government initiatives. The UK tech ecosystem employs millions, with 86,100+ people already working in AI companies. Over 400 AI master's programmes ensure specialised skills development across the sector and UKRI’s 28 Centres for Doctoral Training provide industry-academia partnerships, building specialist expertise and commercialisation pathways.

A pro-innovation regulatory environment, world-class research institutions and strong venture capital ecosystem make the UK an attractive destination for global AI talent. Visa initiatives and research funding support international scientist and technologist recruitment.