The UK Government has unveiled a new plan aimed at harnessing the power of artificial intelligence across the country, as part of its ‘Plan for Change’ strategy. 

Prime Minister Keir Starmer has made no secret his love for AI, previously urging the public to not fear the technology and to embrace the opportunities it affords the UK. Now, the Government has unveiled a blueprint for how exactly we can leverage AI to stimulate economic growth, boost job creation, and improve public services, while also positioning the UK as a leader in the global AI sector. 

Under the plan, the Prime Minister has committed to taking forward all 50 recommendations set out by Matt Clifford in the AI Opportunities Action Plan. The Government says that these measures will help streamline development and investment in AI infrastructure, including the creation of new AI Growth Zones, a significant expansion of public compute capacity, and the introduction of a new National Data Library. 

Ministers argue that these initiatives will bring widespread benefits to working people by reducing administrative burdens, improving public services, and potentially boosting productivity by around 1.5 percentage points a year.

According to the Government, the plan also marks a shift in how Whitehall engages with AI, moving away from the previous administration’s approach. Officials note that AI is already playing a role in the NHS, identifying pain levels for patients who cannot speak, spotting breast cancer earlier, and assisting in faster patient discharge.

Plans to leverage AI across the UK economy

The UK Government has unveiled some ambitious use cases for AI in the hopes that it will help boost productivity and spark economic growth. Starmer explored some potential examples, “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.

“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. We must move fast and take action to win the global race.

“Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services.”

Investment in AI from the private sector

The Government has revealed that three companies have committed to £14 billion worth of investment in the UK, creating over 13,000 jobs. That includes Vantage Data Centres, Nscale, and Kyndryl, which are all set to build or expand their data centre facilities, with the aim of supporting Britain’s wider adoption of AI technologies.

Vantage Data Centres plans to invest over £12 billion across its data centre network in the UK, potentially creating more than 11,500 jobs, while Kyndryl is set to create up to 1,000 AI-focused roles in Liverpool over the next three years.

As part of its investment, Nscale plans to build new data centres in both fixed and modular formats, powered by clean energy. The first facility in Loughton, set to launch in 2026, could house up to 45,000 Nvidia GPUs and create 500 jobs during construction, along with 250 long-term positions for ongoing operations. The company says it aims to boost the UK’s AI capabilities while keeping data within Europe, and is committing £2 billion to its expansion plans.

Josh Payne, CEO of Nscale, commented, “Our investment in the UK marks a significant milestone in building next-generation AI infrastructure. This expansion will help us meet the growing demand for generative AI by deploying advanced GPU clusters more efficiently. Additionally, capital from our recent funding round will accelerate our global 1.3 GW pipeline of greenfield data centres, with 120 MW planned for development in 2025. This underscores our commitment to delivering sustainable, scalable AI infrastructure that drives innovation and economic growth.”

Learning to compete with the US and EU on AI

The UK will need to compete with the European Union and the United States in attracting investment in AI technology. The US is already by far the leading destination for investment in AI, with the technology already powering much of the US’ economic growth over the last year. In fact, Microsoft further cemented the US as a major destination for AI investment as it plans to spend ‘over half’ of its $80 billion investment in AI infrastructure in the country. 

That doesn’t mean the UK can’t compete, however. In fact, the UK Government says that the UK can learn from both the US and EU approaches on AI, balancing flexibility and stability to attract further investment. It also emphasises dedicated AI Growth Zones, intended to speed up planning permission, ensure energy connections for AI facilities, and encourage new infrastructure development.

Peter Kyle, Science, Innovation, and Technology Secretary, commented,  “AI has the potential to change all of our lives but for too long, we have been curious and often cautious bystanders to the change unfolding around us. With this plan, we become agents of that change.  

“We already have remarkable strengths we can tap into when it comes to AI – building our status as the cradle of computer science and intelligent machines and establishing ourselves as the third largest AI market in the world.  

“This government is determined that the UK is not left behind in the global race for AI, that’s why the actions we commit to will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today. This is how we’re putting our Plan for Change in motion.”

Worries around planning and power still persist

While the UK Government has announced bullish plans to boost UK economic growth with AI, there are still those within the industry who worry about the feasibility of building out the UK’s AI infrastructure. That includes a recent report from BCS, which highlighted power and planning constraints as major threats to AI’s success in the UK. 

Addressing the planning constraints, the UK Government did confirm as part of its Plan for Change that it will speed up planning by designating specific areas across the UK as ‘AI Growth Zones’. These will also see better access to grid infrastructure, meaning they could solve the issue of power constraints as well – but, of course, this doesn’t solve the issue for those wanting to build outside of these zones. 

In fact, thus far, the UK Government has only announced one AI Growth Zone, in the form of Culham, Oxfordshire. That’s where the UK Atomic Energy Authority houses a significant campus that has already been seeking new tenants to take advantage of its ample power infrastructure. 

What this means, however, is that those who want to build data centres for latency-sensitive AI applications in areas such as London, will still face significant hurdles. However, this UK Government has shown its willingness to approve data centre sites even in the face of local opposition, including a recently approved site located just within the M25.