Amid signs of a stagnating economy, the UK is going all-in on AI. On Monday, British Minister Keir Starmer announced a new AI Opportunities Action Plan. At the center of the initiative are “AI Growth Zones,” which the government plans to establish in de-industrialized areas throughout the country.
In these areas, the Labour government will fast-track planning approvals for data centers and offer better access to the national energy grid. Starmer said the UK’s first AI Growth Zone would be established in Culham, Oxfordshire, home to the country’s Atomic Energy Authority. More zones will be announced in the summer.
At the same time, Starmer’s government plans to increase state-owned compute capacity by a factor of 20, starting with the “immediate” construction of a new supercomputer with “enough AI power to play itself at chess half a million times a second.” As of November 2024, the UK has 14 supercomputers on the TOP500 list, putting it behind — by a significant margin — the US and China.
Additionally, the plan will see the government establish a National Data Library, which it says will make the country more attractive to investors by allowing private industry to “safely and securely unlock the value of public data.” Finally, a new AI Energy Council will work with energy companies to meet the power demands of the AI industry in a way that’s in line with the government’s clean energy strategy.
“Artificial Intelligence will drive incredible change in our country. From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people,” Starmer said. “But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by.”
Over the next 10 years, Starmer’s government estimates that its strategy could generate as much as £47 billion ($57 billion) in annual economic growth. The announcement comes after the UK economy failed to grow in the third quarter of last year. From that perspective, making the country more attractive to outside investment isn’t the worst idea — especially with companies like Microsoft planning to spend $80 billion on new data centers this year.
