The UK Government aims to back AI ‘to the hilt’ as part of an ambitious new strategy launched today.
Prime Minister Keir Starmer has taken forward all 50 recommendations set out by Matt Clifford’s AI Opportunities Action Plan – and believes gains could be worth up to an average £47bn to the UK each year over a decade.
Dedicated AI growth zones will be designed to speed up planning permission and provide energy connections needed to power up AI.
Prime Minister Starmer said, “In a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.”
The strategy launch comes as three major tech companies – Vantage Data Centres, Nscale and Kyndryl – have committed to £14bn investment in the UK.
Vantage Data Centres plans to build one of Europe’s largest data centre campuses in Wales, Kyndryl is creating up to 1,000 AI-related jobs in Liverpool over the next three years and Nscale has earmaked $2.5bn investment to support the UK’s data centre infrastructure over the next three years, and signed a contract to build the largest UK sovereign AIdata centre in Loughton, Essex by 2026.
Chancellor of the Exchequer Rachel Reeves said the action plan is the government’s ‘modern industrial strategy in action’.
Delivering the energy
A dedicated AI Energy Council chaired by the Science and Energy Secretaries will also be established, working with energy companies to understand the energy demands and challenges which will fuel the technology’s development.
The plan has three main pillars. AI growth zones will be set up across the country that will speed up planning approvals for the rapid build-out of data centres, give them better access to the energy grid, and draw in investment globally.
The first will be in Culham, Oxfordshire – home to the UK’s Atomic Energy Authority and some of the brightest scientific minds. This will also serve a testing ground to drive forward research on how sustainable energy like fusion can power our AI ambitions.
More will be announced in the summer, with a particular focus on de-industrialised areas of the country with access to power and strong support from local government.
Other bold plans include building a ‘brand new supercomputer’ with enough AI power to play itself at chess half a million times a second, and a new digital centre of government which is being set up within DSIT.
The second and third elements will focus on adoption and keeping at the forefront of AI technology.
Darren Hardman, CEO, Microsoft UK, said the scale of this government’s ambition for AI development and adoption in the UK is exactly what’s needed to drive economic growth, transform public services and create new opportunities.
Tim Bestwick, Deputy CEO, UK Atomic Energy Authority (UKAEA), said AI and High-Performance Computing are central to UKAEA’s mission to lead the delivery of sustainable fusion energy.
Julian David OBE, CEO of techUK, said industry will want to see more detail on how this plan will be actioned within the next six months, particularly as we face growing competition from other countries.
Professor Alastair Buckley from the University of Sheffield’s School of Mathematical and Physical Sciences, said AI is already a key tool in wind and solar energy forecasting and in the near future it will be used to help plan upgrades to energy infrastructure.
“The challenges the sector faces are twofold: skilled people and access to the relevant data. The proposed AI growth zones start to address both of these by providing the critical mass of organisations needed to train people, as well as the trusted relationships needed to share the data,” he said.
Nadège Lespagnol, Global Climate Data Analytics Director, Global Sustainability Practice at EcoAct (a wholly owned subsidiary of Schneider Electric), said the UK government’s ambitious blueprint to turbocharge AI development presents a significant opportunity to harness technology for economic and societal growth – but it must also address the climate consequences of such rapid expansion.
“While it is commendable that the government is taking the lead in the global race for AI opportunities and deployment, the energy-intensive nature of AI infrastructure, such as data centres and high-performance computing, poses a risk of exacerbating carbon emissions if not powered sustainably,” she said.
“To truly lead in AI while maintaining its Net Zero ambitions, including the carbon emissions targets unveiled at COP29, the UK must prioritise renewable energy integration, energy-efficient technologies, and a responsible approach to deploying AI in areas that deliver tangible climate benefits. Balancing innovation with sustainability is essential to ensuring AI becomes a driver of progress not just economically, but also environmentally, for a greener future.”
The oil and gas industry is ‘cautiously’ embracing AI and marginally behind industry averages, according to Airswift’s Global Energy Talent Index (GETI) report last year. It found 24% of oil and gas professionals already use AI, around 3% less than the average, although a further 10% were expected to adopt it.
Janette Marx, CEO of Airswift, said the oil and gas sector is at a critical juncture with AI emerging as a key tool to support decarbonisation efforts.
