London-based AI hyperscaler Nscale has unveiled ambitious plans to invest £2 billion in the UK’s AI data centre industry over the next three years.
The investment will establish a network of advanced data centres, designed to power the next generation of artificial intelligence applications, from large language models to complex machine learning systems. These facilities will be powered by clean energy and equipped with cutting-edge NVIDIA generative AI technology, and will form the backbone of the UK’s AI computing infrastructure. They will be designed to enable businesses and researchers to develop and deploy sophisticated AI solutions at scale.
The company plans to complement this with modular data centres, beginning construction in late 2025, which will create a distributed network of AI computing power across the UK. These will provide flexible, scalable computing resources that will meet the growing demand for AI processing power.
CEO Josh Payne said:
Our investment in the UK marks a significant milestone in building next-generation AI infrastructure. This expansion will help us meet the growing demand for generative AI by deploying advanced GPU clusters more efficiently. Additionally, capital from our recent funding round will accelerate our global 1.3 GW pipeline of greenfield data centres, with 120 MW planned for development in 2025.
Josh went on to outline how the investment “underscores Nscale’s commitment to delivering sustainable, scalable AI infrastructure that drives innovation and economic growth.”
750 New Tech Jobs on the Horizon
The investment promises significant economic benefits; creating around 500 construction jobs and 250 operational positions over three years.
The project is expected to help attract commercial investment and support the UK’s AI startup ecosystem. Karl Havard, CCO of Nscale, emphasises the focus on data sovereignty:
By combining sovereignty with high-performance AI infrastructure, we’re driving innovation, attracting additional investment into the UK economy, and proving that technological leadership can be built on secure, compliant, and purpose-driven foundations.
Alignment with Government AI Strategy
The investment aligns perfectly with the UK Government’s AI Opportunities Action Plan, supporting the nation’s ambition to become a global leader in artificial intelligence. The data centres will provide the computational foundation necessary for developing and deploying advanced AI solutions across various sectors; from healthcare and financial services to manufacturing and research.
Science, Innovation, and Technology Secretary Peter Kyle endorsed the project:
Nscale’s investment reinforces the UK’s standing as a global leader in AI and shows real confidence in our blueprint to turbocharge the use of the technology and how we’re delivering our Plan for Change to put AI to work for communities across the country.
Kyle also notes that Nscale’s support in developing a multi-billion AI data center will serve as a “catalyst for innovation,” explain that the move sends “a clear message that Britain is the perfect ‘home from home’ to drive growth, deliver high-skilled jobs, and access the cutting-edge tools that will fuel the AI revolution.
Nscale has recently secured $155 million in Series A funding to accelerate its expansion across the UK, Europe, and North America. The company operates a 60MW renewable energy-powered data centre in Norway and has a pipeline of over 1.3GW of greenfield data centres.
Their partnership with Open Innovation AI targets the deployment of 30,000 GPUs over the next three years.
Looking Ahead to 2030 – The UK’s AI Vision Takes Shape
This major investment represents more than just infrastructure development – it’s a decisive step toward establishing the UK as a major player on the global AI stage. By combining substantial job creation with cutting-edge technology deployment, Nscale’s investment marks a positive step in the UK’s journey towards becoming a global AI leader by 2030.
