Microsoft to Invest £25 Billion in Global AI Development

2023-12-04

Microsoft, the tech giant, announced plans to invest £2.5 billion (approximately $3.16 billion) in building AI infrastructure in the UK, with the aim of expanding data centers and GPUs. The announcement was made by Microsoft at a government-hosted summit on AI infrastructure in the UK. This investment is part of the £29.5 billion (approximately $37.4 billion) commitment made by global companies to the UK, which was announced at the Global Investment Summit on November 27, 2023. Microsoft expects this investment to bring more data centers and graphics processing units (GPUs) to the UK, the latter being chips used to enhance AI applications. This news comes shortly after Microsoft's significant investment in Australian data centers, with plans to invest $3.16 billion to expand cloud computing and AI capabilities, as well as adding nine new data centers in Canberra, Melbourne, and Sydney. The rise of AI has led to a deeper commitment to data centers. As technology rapidly advances and AI adoption increases, the pressure on the data center industry continues to grow. Cloud computing and the widespread adoption of AI are driving unprecedented growth in data centers, with an estimated 50% of all cloud data centers expected to use AI by 2025. While Microsoft announces its investment plans in the UK, the global race to empower data centers with new technologies is underway. Particularly in Europe, according to CoStar's report, the demand for data centers broke records in the second quarter of 2023, driven by AI. In addition to the UK and Australia, Microsoft recently announced expansion plans for data centers in Canada. The company's investment is expected to grow its footprint in local cloud infrastructure by 750% over the next two years, as reported by Data Center Magazine. With investments in data centers across multiple regions worldwide, Microsoft aims to further its sustainability goals by adopting environmentally friendly building materials and renewable energy sources. The company aims to ensure that its new data centers contribute to achieving its sustainability goals, including carbon negativity, water positivity, and zero waste by 2030. Furthermore, the investment in the UK is expected to have a positive impact on business development, creating thousands of new jobs and promoting national economic growth. Microsoft has data center campuses throughout the UK, and its community development work supports sustainability and provides skills training for people of all ages. In the midst of the AI boom, Microsoft has also upgraded its existing three UK sites with the latest GPUs, network devices, and its own AI chips. This move comes after the company had to restrict its UK-based services in 2022 due to supply shortages. More information regarding the investment is expected to be released by the tech giant in the near future.