Microsoft’s $30B UK Investment Outshines Google’s Efforts

Microsoft is committing a massive £22 billion (approximately $30 billion) to the United Kingdom, aiming to significantly boost the nation’s artificial intelligence infrastructure and operational capabilities between 2025 and 2028. This landmark investment includes $15 billion in capital expenditures dedicated to constructing a state-of-the-art supercomputer, designed to meet growing AI demand and accelerate adoption across industries.

During a press briefing, Microsoft Vice Chair and President Brad Smith emphasized the scale of this commitment, stating, “This will account for more than two-thirds of the tech sector’s total investment announcements in the UK that are being made this week.” He added, “We’re focused on British pounds, not empty tech promises, because it’s easy to have big numbers, but we’ll be good for every cent of this investment.”

Smith’s remarks appear to be a direct response to Google’s own announcement earlier the same day, which pledged £5 billion (around $6.8 billion) toward UK AI development. Microsoft’s latest financial injection represents what Smith described as a “very substantial increase” over its previous UK investments made in 2023.

A central component of the plan involves building what will become the country’s largest supercomputer, developed in collaboration with Nscale and equipped with more than 23,000 advanced GPUs. Smith highlighted, “We’re not just investing in the UK, we’re investing with partners in the UK. It includes the data centers we have today and an expansion of them.”

The timing of Microsoft’s announcement coincides with a state visit by former U.S. President Donald Trump to Britain, underscoring a period of visible U.S.-UK collaboration. Smith clarified that the investment was not requested by the Trump administration, though its alignment with the visit suggests careful coordination with UK officials.

This move marks a notable shift from Microsoft’s strained relationship with UK regulators just a few years ago. During the contentious Activision Blizzard acquisition in 2023, Smith openly criticized the UK’s Competition and Markets Authority (CMA), even suggesting the EU was a more attractive business environment. He later softened his stance, describing the CMA as “tough and fair,” and acknowledged he might have chosen “slightly different words.”

In his recent comments, Smith praised both the previous government under Rishi Sunak and the current administration led by Keir Starmer. He noted, “Our ability to make an investment of this size is based in no small measure on the work the government is doing to reform planning, grow electricity capacity, and foster a more stable and open regulatory environment.”

While Google also announced a new data center in Waltham Cross, Hertfordshire, hailed by Chancellor Rachel Reeves as a “powerful vote of confidence”, Microsoft secured a more prominent endorsement. Prime Minister Starmer personally commented on Microsoft’s investment, calling it “a powerful vote of confidence in UK’s leadership in AI and cutting-edge technology.”

The remaining portion of Microsoft’s $30 billion commitment will support ongoing operations throughout the UK, including its workforce of 6,000 employees. Although the company closed its flagship London store earlier this year, it maintains a strong physical presence with offices in Cambridge, Reading, London, and other locations, reinforcing its long-term dedication to the British market.

(Source: The Verge)