Sir Keir Starmer has unveiled a £1 billion investment package aimed at scaling up the UK’s computing power twentyfold, in a major push to solidify Britain’s status as a global technology and artificial intelligence leader.
Opening London Tech Week this morning, the prime minister said the investment would form part of the government’s long-term ambition to be “the best state partner for tech entrepreneurs anywhere in the world.”
The funding boost is expected to play a central role in the forthcoming spending review by Chancellor Rachel Reeves, with industry leaders anticipating further announcements on the development of AI growth zones. These zones would expedite planning approvals and guarantee access to clean energy for data centres—key enablers of AI development and deployment.
The move comes as tech giants and investors increasingly highlight the UK’s potential in AI, but also warn of infrastructure bottlenecks. Speaking at the same event, Nvidia’s chief executive Jensen Huang described the UK’s AI sector as “the envy of the world,” but added that the country lacks one crucial element: “If you’re in the world of AI, you do machine learning. You can’t do machine learning without a machine.”
Huang’s comments were echoed in conversations with Starmer and Baroness Gustafsson, the new minister for investment. “The ability to build these AI supercomputers here in the UK will naturally attract more start-ups,” Huang said, signalling that AI infrastructure will be key to maintaining the UK’s competitive edge.
The government’s AI strategy, outlined in January, promised a roadmap for national AI infrastructure within six months. Today’s announcement marks a major step towards that goal, addressing industry calls for greater clarity and investment in the physical and digital foundations needed to support advanced computing and innovation.
Starmer’s pledge is likely to be welcomed by tech investors and entrepreneurs, many of whom have argued that, despite the UK’s academic strength and entrepreneurial culture, its progress in AI has been held back by limited access to high-performance computing and grid-ready energy infrastructure.
The Prime Minister’s remarks also signal a shift towards a more collaborative relationship between government and the tech industry, with an emphasis on long-term, joined-up planning. “This is not just about creating infrastructure,” Starmer said. “It’s about creating confidence—confidence that the UK is a place where innovation can thrive, where start-ups can scale, and where the state is an active and reliable partner.”
With London Tech Week serving as a global platform for UK tech ambition, today’s announcement sets the tone for a pivotal summer in digital policy and investment. Whether this promise will translate into the infrastructure, skills and energy reforms the sector demands will likely be revealed in Reeves’s detailed budget plans later this week.
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Starmer pledges £1bn investment to supercharge UK tech and AI infrastructure