Microsoft to invest $30 billion in UK, outpacing Google in AI race

Microsoft has reportedly announced that it is investing £22 billion (around $30 billion) in the UK to support AI infrastructure.

The investment incorporates $15 billion in capital expenditures to support AI demand and adoption.

The Microsoft vice chair and President Brad Smith said in a press briefing that this significant move will account for more than two-thirds of the tech company's total investment in the UK.

He further stated, "We’re focused on British pounds, not empty tech promises, because it’s easy to have big numbers." He added that they are satisfied with every cent of this investment.

Smith says that Microsoft’s latest investment is a very substantial increase over its previous investments in 2023.

Microsoft's multi-billion-dollar investments in the UK were announced on the same day President Donald Trump arrived in Britain for a second state visit. This shows a clear collaboration between the US and UK.

The prime motive for this investment is based in no small measure on the government’s pivotal steps to reform planning, expand electricity supply, and foster a more stable and open regulatory environment.

Google is also opening a new data center in Waltham Cross, Hertfordshire, a move that represents a powerful vote of confidence in the UK economy and strengthens the country's leadership in AI and cutting-edge technology.

Microsoft $30 billion investments will be used to support the company’s ongoing operations across the UK, including its 6,000 employees who are based there.

Earlier this year, Microsoft established its offices in Cambridge including its UK headquarters and Microsoft AI office in London.