The UK Government’s plan to harness AI across the entire economy has thus far received positive reaction from across the industry, although many have also shared concerns.
Prime Minister Keir Starmer’s commitment to “move fast and take action” has drawn praise for its focus on investment and growth opportunities, while also raising questions about how to ensure a fair distribution of benefits throughout the country.
Potential for growth and an economic boost
Many industry figures believe the Government’s approach has the potential to deliver economic advantages. Richard Clifford, Director of Solutions for Keysource, described it as “a hugely positive step for both the sector and the economy.” He highlighted the possibility of repurposing heat generated by data centres, suggesting this energy could be redirected to local heating networks to reduce overall consumption.
Others underlined the chance for major progress in the sector. Mark Yeeles, Vice President in the Secure Power division at Schneider Electric UK & Ireland, called the strategy a “crucial first step towards a more digitally driven future,” stressing the need to prioritise “security, sustainability and efficiency.” Yeeles also believes that the proposed AI Growth Zones represent a “logical and effective way to fast-track new AI infrastructure” when paired with distributed energy resources.
James Klein, a Corporate Partner at law firm Spencer West LLP, characterised the Action Plan as “a very positive step in the right direction,” and acknowledged the potential benefits from scaling AI pilot programmes in Government. Similarly, Ryan Cox, Head of AI at Synechron, described the technology’s potential as “an exciting development” that could “supercharge the country’s economy, businesses, and people.”
Could AI Growth Zones lead to regional inequality?
While enthusiasm for AI’s growth persists, some experts have warned about the Government’s focus on AI Growth Zones. Stewart Laing, CEO of Asanti Data Centres, stated that “the Government’s plan to invest in one or two large AI data centres is fundamentally flawed,” arguing that a more decentralised approach through edge and regional facilities would better serve local public services.
Clifford further hammered home this point, stressing the importance of situating data centres “near heat consumers,” suggesting this could make it easier to capture and reuse excess heat, which could have wider benefits for the UK economy. Dame Dawn Childs, CEO of Pure DC, similarly called for “close collaboration between government, industry, and local communities” to ensure data centres “respect and actively benefit the communities they serve.”
Dr Shweta Singh, Assistant Professor at The University of Warwick, welcomed the focus on “enhanced efficiency in public services” and “AI Growth Zones,” but also warned of “regional inequality” if AI-related job opportunities remain concentrated in certain areas.
This focus on regionality was also a concern for Robin Ferris, AI Lead at Pulsant, who argued that “having a spread-out, diverse digital infrastructure across the UK is key to making AI accessible to everyone,” while Childs noted she was “particularly encouraged by the plan’s focus on creating jobs and fostering innovation in de-industrialised areas.”
Power remains a growing concern
It wasn’t just regional inequality that had some industry figures concerned about the Government’s AI plans, but ongoing issues surrounding access to reliable power supplies and high-speed internet infrastructure continued to come to the fore.
Stewart Laing, CEO at Asanti Data Centres, stressed that “the data centre industry, and indeed the UK as a whole, faces significant power challenges,” noting that the South of the country is running out of capacity while Scotland has excess green energy going to waste.
Laing also voiced concern around access to high-speed internet infrastructure, noting, “The UK still lags behind in the roll out of full fibre connectivity. This significantly limits the deployment of new data centres to locations where both power and fibre can be provisioned.”
Skills gap will need addressing to unlock AI’s benefits
The digital skills gap also remains a pressing issue, with Clifford referencing Keysource’s own “State of the Industry Report,” which found that 40% of organisations struggle to find qualified candidates.
Yeeles also emphasised the need to address the ongoing skills gap, as he noted, “to meet and exceed our ambitions around AI leadership, it’s essential we tackle the skills gaps across several key areas connected to AI, including data centres and digital infrastructure, renewable power, sustainability, and engineering.”
Whether the AI ‘Plan for Change’ will work out in the end remains to be seen, although it’s clear that the industry is watching closely to see how the Government converts its ambitions into real progress. However, if the plan remains aligned with sustainable practices, balanced investment, and efforts to involve communities across the UK, it seems that the industry believes that this could mark a significant step towards building an AI-ready nation.
