AI to power national renewal as government announces billions of additional investment and new plans to boost UK businesses, jobs and innovation
Source: gov.uk (2025-11-20)

A major package of new reforms and investment will put AI at heart of government’s mission to drive growth, create jobs and spread prosperity across the country.

- Thousands of new jobs and billions of pounds of investment in AI announced across the UK as driver of growth – including in Wales, Bristol and London
- A new AI Growth Zone in South Wales will create more than 5,000 new jobs for local communities over the next decade, including at former Ford Bridgend Engine Plant
- New opportunities for British AI firms to grow and AI innovation to flourish, expanding free access to compute for British researchers and scientists
- Brilliant scientists also backed to use AI, with up to £137 million to drive breakthroughs and develop new drugs, cures and treatments
Ahead of the Budget next week, these plans will ensure new investment boosts jobs and growth – giving British businesses the opportunity to scale and compete internationally as part of our Modern Industrial Strategy (https://www.gov.uk/government/collections/the-uks-modern-industrial-strategy-2025). International companies are also hosting new centres in the UK and British companies are increasing investment – with £24.25 billion in private investment committed in this last month alone.

Companies like Vantage Data Centers and Microsoft are also joining forces with the government to deliver another AI Growth Zone. Set in South Wales, £10 billion of investment will unlock at least 5,000 jobs, including in industrial heartlands like the former Ford Bridgend Engine Plant.

AI Growth Zones (https://www.gov.uk/government/collections/ai-growth-zones) will help transform local economies and ensure no community is left behind, with £5 million of government funding for each Growth Zone to boost business adoption and invest in the skills of local workers.

To ensure British businesses and researchers stay at the forefront of AI, new plans will back firms and scientists with the right tools to succeed and to seize the opportunity for British workers and growth.
- The government will act as a “first customer” for promising UK start-ups who are building high-quality AI hardware products but currently struggle to get off the ground without investment. The new “advance market commitment” is backed up by up to £100 million of government support to give British startups the opportunity for a competitive edge and to win customers in a multibillion-dollar global market. AI Growth Zone data centres will house billions of pounds of hardware. Our goal is to see British chips deployed alongside established vendors.
- Alongside this, venture capitalist James Wise will chair the Sovereign AI Unit, backed by almost £500 million in investment to help build and scale AI capabilities on British shores. The unit will bring together government, industry and investors, to become the go-to fund for high potential start-ups and scale-ups in the UK.
- New AI ambassadors will help maximise the benefits of AI for Britain. Nobel prize winning British Massachusetts Institute of Technology (MIT) economist and former Chief Economist of the International Monetary Fund (IMF) Simon Johnson will act as a standard bearer with public services and businesses to help them take up this brilliant technology to boost productivity. Monzo Co-founder and Y Combinator General Partner Tom Blomfield will champion British start-ups to scale up and attracting talent and investment. And Google DeepMind VP of Research Raia Hadsell will champion the UK’s place at the forefront of AI innovation and security.
- The government will offer more free compute to British researchers and British startups so they can train new AI models and deliver scientific breakthroughs. The process to spend up to £250 million on compute is being launched today.
- A new strategy is also being unveiled (https://www.gov.uk/government/publications/ai-for-science-strategy) to make sure AI supercharges scientific discovery backed by up to £137 million in government funding. Its first mission will be focused on harnessing AI to speed up the research of new drugs and treatments - giving patients a new lease of life and fresh hope that their conditions can be better managed.
Secretary of State for Science, Innovation, and Technology, Liz Kendall said:

We are ambitious for our country and believe Britain’s best days lie ahead. Today we’re announcing a package of measures that ensure we seize the opportunities to get jobs and growth in every part of the country.

The backing by international investors today is a vote of confidence in the UK – and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings. This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change.

Chancellor of the Exchequer Rachel Reeves said:

This government promised to unlock growth and that is exactly what we are doing.

Today’s confirmation of our fourth AI Growth Zone is our Plan for Change in action - creating thousands of jobs and unlocking new investment for local communities in the industries of the future, cementing our position as Europe’s leading tech sector.

Secretary of State for Wales Jo Stevens said:

Wales will now have 2 brand-new AI Growth Zones bringing thousands of jobs to both North and South Wales and driving economic growth across the country.

South Wales is already the home of a growing tech industry and this major investment in the region will help cement the UK’s place as a global leader in AI.

Several sites will make up a new AI Growth Zone in South Wales – dedicated areas of AI development – stretching along the M4 corridor from Newport to Bridgend and has the potential to harness over 1GW by early 2030s.

At least 5,000 jobs are set to be delivered as a result, spanning construction roles which will now spring up as a result of building work, to long-term careers in AI research and development. South Wales will also benefit from up to £5 million in government support to boost business adoption and skills in AI Growth Zones, while tech firms behind the site, like Vantage Data Centers, are committing today to working with universities across South Wales to boost skills in AI. This will develop the next generation of AI leaders at source and switch on the taps that will deliver a pipeline of talent for years to come. Building on these partnerships, NVIDIA’s continued investments and collaborations are helping strengthen the UK’s role as a global hub for AI development.

Notes to editors

4 AI Growth Zone sites have now been announced in the 11 months since the launch of the AI Opportunities Action Plan (https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan), with further announcements now expected to follow in due course. Work is now underway to secure an investor to help deliver the South Wales Growth Zone site

The launch of a novel compute advance market commitment is subject to due diligence

This comes as scores of companies make new commitments to boost growth across the country supporting our modern Industrial Strategy (https://www.gov.uk/government/collections/the-uks-modern-industrial-strategy-2025) and the more than £78 billion invested in the UK’s AI sector since the government took office
- American AI inference platform Groq will be opening its first UK data centre in London this year, backed by around £100 million
- Graphcore and SoftBank renew their backing for the UK with a new AI development lab in Bristol - doubling their headcount to 750 jobs
- AI Pathfinder is fast-tracking UK sovereign AI with £150 million GPU deployment in Northamptonshire - the first step in an £18 billion programme into UK sovereign AI infrastructure over the next 5 years
- Cerebras is committed to deepening its investment in the UK by expanding AI partnerships and strengthening collaboration with EPCC at the University of Edinburgh. The company aims to increase its presence across the region, grow its local workforce, and accelerate innovation throughout the UK
- San Francisco company Perplexity AI are investing £80 million to expand their offices in London, creating 100 jobs
- Cursor is opening its London office as its European headquarters, marking the company’s first international expansion
- These fresh investments build on Equinix’s recent £4 billion commitment to constructing and operating a high-performance data centre campus in Hertfordshire, supporting thousands of jobs and strengthening the UK’s digital infrastructure and AI industry, as well as Zoom confirming plans to open a new UK data centre in 2026 backed by £24 million investment over the next 3 years, scaling as demand increases -creating 25 new high-skilled roles.
Industry reaction and support for today’s announcements

David Howson, President of Vantage Data Centers, EMEA. said:

This is a welcome signal of the government’s commitment to South Wales and strengthens what is already one of the most exciting AI development opportunities in the UK. As a company at the forefront of global AI infrastructure, we see world-class potential here in South Wales.

The breadth of talent, connectivity and local support have all shaped Vantage’s investment here. We look forward to building on those strengths in partnership with the UK and Welsh governments.

UK Sovereign AI Unit Chair James Wise said:

I’m excited to start as Chair of the UK’s Sovereign AI Unit, which will launch next year. This will be a new type of government fund - one which aims to be the first choice for founders building essential parts of the UK’s AI infrastructure and economy.

One which uses the awesome power of the British state to help scale our AI breakthroughs. And one which aims to make a meaningful return for the British taxpayer. I look forward to working with the team to build and launch this fund in the coming months in this critical area of technology.

Monzo Co-founder and newly-appointed AI Ambassador Tom Blomfield said:

Britain should be the best place in the world for brilliant technical people – especially those early in their careers – to start AI companies.

As an AI Ambassador I want to help government understand what founders need to succeed, so more people feel confident taking risk and building world-changing companies in the UK.

Raia Hadsell, Vice President, Research at Google DeepMind said:

I’m excited to collaborate with the UK government, alongside other experts, to unlock the transformational benefits of AI for society. Being at the frontier of AI presents tremendous opportunities to improve people’s lives through AI enabled education, health outcomes and scientific discoveries.

Martin Bellamy, CEO of AI Pathfinder, said:

AI Pathfinder is driving economic growth and social value through sovereign AI. With an initial investment of over £150 million, we are equipping the UK’s public sector, industry, and national security communities with the secure infrastructure they demand. This is a vote of confidence in the UK’s vision: delivering world-class capability while keeping sensitive data firmly on British soil.

Hugh Milward, Vice President, External Affairs, Microsoft UK said:

This is fantastic news for Wales and for all organisations connected to its growing digital ecosystem. We’re proud to be investing in South Wales and playing our part to deliver this new AI Growth Zone, helping to build the AI economy of the future and deliver benefits for communities across the region.

Nobel prize winning British MIT economist and former Chief Economist of the IMF Simon Johnson said:

The UK has a real opportunity to translate AI into productivity gains that significantly raise living standards. My focus will be on accelerating adoption while ensuring the benefits are broadly shared, including for people at all levels of education and skill.

Professor Chris Bishop FRS FREng FRSE Technical Fellow, and Director of Microsoft Research AI for Science said:

In my view, scientific discovery represents the single most important application area for AI. The consequences of accelerating scientific discovery are far-reaching, from the development of life-saving drugs to the efficient design of sustainable materials. I am therefore delighted to contribute, alongside other leading experts, to the development of this national strategy on AI for science. The release of this strategy document is a significant first step in ensuring that the UK remains at the forefront of AI development, in an area that is key to the future success of our society.

Garry Pairaudeau, CEO and Co-Founder, DaltonTx said:

I am incredibly excited by the launch of the UK AI for science strategy, it recognises the unique, deep expertise within the UK and creates an ambitious vision to drive this critical area forward

Further support for the AI for Science Strategy

Charlotte Deane, Executive Chair of the Engineering and Physical Sciences Research Council and Professor of Structural Bioinformatics at the University of Oxford said:

AI is rapidly expanding what is scientifically possible. We are committed to harnessing its potential to improve people’s lives and drive economic growth, from better healthcare, cleaner energy, to more resilient infrastructure. Strong partnership between UKRI and DSIT is vital to ensure these technologies deliver meaningful benefits for communities nationwide and today’s announcements mark an important moment in that shared effort to accelerate progress.

Ant Rowstron, Chief Technology Officer - ARIA said:

AI is transforming science, automating key parts of the research process and creating entirely new capabilities. We welcome the ambition of the UK’s AI for Science Strategy, which will ensure that UK scientists have the tools, technology and infrastructure they need to lead the world in realising the full potential of these new technologies.

Pushmeet Kohli, VP, Science and Strategic Initiatives, Google DeepMind said:

AI-enabled science will have significant benefits for society so it’s crucial to ensure UK scientists and researchers have access and understanding of the leading AI models and agents. It’s exciting to see the UK government prioritising investment in critical ingredients like data to facilitate future scientific breakthroughs and unlock opportunities in areas like drug discovery, fusion energy and new materials.

Professor Gopal Ramchurn, University of Southampton and CEO Responsible AI UK said:

As AI becomes more deeply embedded in scientific research, it is essential that researchers are equipped with the skills and tools needed to deliver high-quality, high-integrity science. The UK’s AI for Science Strategy recognises this imperative, and at Responsible AI UK we look forward to working with government, industry and academia to ensure the next wave of AI-enabled scientific progress is safe, trustworthy and delivers meaningful benefits for society

Professor Anthony Hollander, Pro Vice-Chancellor for Research and Impact, University of Liverpool:

The AI for Science Strategy charts an ambitious path to secure the UK’s global leadership in AI-driven science, building on our strengths while opening entirely new horizons for discovery.

Professor John Aston, Pro Vice-Chancellor for Research, University of Cambridge:

We welcome the focus on AI for Science that comes with this strategy. AI is now an integral part of most scientific labs, and it is vital that we all support further integration, including allowing opportunities for researchers to learn-and-experiment with these powerful new technologies.

Professor Evelyn Welch, Vice-Chancellor and President of the University of Bristol, said:

As a research-intensive university at the heart of the UK’s AI revolution we support the announcement of the AI for Science Strategy and are pleased to be a key part of this. Earlier this year we launched Isambard-AI, the world’s fastest supercomputer based at a university which will spearhead AI innovation and scientific discovery in important areas such as drug discovery and climate research.

The National AI Data Facility – which will be physically located next to the supercomputer – will be a critical part of its infrastructure, further establishing Bristol and the UK as an international hub for AI research. This investment will be central to creating a ‘British Library’ for the AI age.

Ronit Kanwar, Managing Director, Renaissance Philanthropy said:

We’re energised by a strategy that focuses on creating the next AlphaFold moment for UK science. Its emphasis on building high-quality, open scientific datasets and developing ‘bilingual’ talent—researchers fluent in both AI and domain expertise—is what’s needed to turn algorithmic progress into real-world breakthroughs.

At Renaissance Philanthropy, we know what happens when a field has the right public goods: the Protein Data Bank (PDB) and CASP transformed the pace of discovery globally. This strategy applies that same logic across domains, with shared datasets, benchmarks and compute that let whole communities move faster. That’s why we are excited to partner with DSIT to identify novel datasets to unlock the transformative potential of AI. With its strengths in life sciences, unique datasets, talent, and the institutions capable of stewarding national-scale infrastructure, the UK is well placed to lead. If delivered with urgency, the mission outlined in the strategy can accelerate drug discovery and unlock scientific advances that improve lives across the UK and beyond.

Prof. Andrew Cooper FRS, University of Liverpool, Academic Director, Materials Innovation Factory, Co-Director, EPSRC AI for Chemistry Hub (AIchemy) said:

This is great strategy - AI for science is moving at a breakneck pace worldwide and the rapid rise of automated, self-driving labs is particularly remarkable. It is vital for the UK to maintain its leading position in this space. We can only do this by supporting in tandem both the foundational research and its translation into UK industry. The actions and pillars in the strategy set out a way to do this.

Prof. Matthew Sperrin, University of Manchester, Causality in Healthcare AI (CHAI) hub said:

We welcome today’s announcement of the AI for science strategy which represents an ambitious plan for the UK. Causal reasoning will play a key role in underpinning these ambitions. We are pleased to see CHAI mentioned as an example of how compute scale can unlock unprecedented knowledge. A clear talent pipeline of diverse individuals will be crucial in delivering this. CHAI is focused on training the next generation of researchers and to that end we are developing tools to deliver education about causal AI using generative techniques.

Dr Mark Effingham, Deputy Chief Executive at UK Biobank, said:

Science is being transformed by AI and this strategy shows what we need to do. UK Biobank is the most used and most comprehensive dataset for research in the world, and every 6 months we add masses of new data, multiplying the value of the data we already have. This has led to a huge amount of research, but the recent addition of AI is having a startling effect across diseases like cancer, cardiovascular disease, Parkinson’s and dementia.

Researchers are building new AI tools using our data, they are running analyses that were previously impossible or would have taken a lifetime’s work. Adding plans to use the country’s unique, large-scale supercomputers to allow specialist research will only make UK Biobank data even more useful. This truly is a chance to make a real difference, not just for the UK, but for the world.

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