OpenAI to expand into UK Data hosting after major growth deal
Source: gov.uk (2025-10-23)

British businesses are set to benefit from a new deal between the Ministry of Justice and global tech leader OpenAI to supercharge UK AI adoption.

- OpenAI unveils new UK data offer in a major boost to business
- Secured through partnership with Ministry of Justice to use AI to drive innovation
- Thousands of staff to use AI to cut 240,000 days of burdensome admin and spend more time supervising offenders
British businesses are set to benefit from a new deal between the Ministry of Justice and global tech leader OpenAI, which is set to supercharge UK artificial intelligence (AI) adoption in a major boost to the economy.

The Deputy Prime Minister, David Lammy, will today (Thursday 23 October) unveil OpenAI’s plans to expand its British AI offer for businesses that want their data stored in the UK. This move will act as a significant boost to UK businesses by helping strengthen resilience and unlock potential as part of the Government’s Plan for Change.

The landmark plan, secured through OpenAI’s ongoing partnership with the Ministry of Justice, will see the company enable its business customers to store their data on British soil for the first time British businesses will be able to host data on secure, sovereign servers not only enhances privacy and accountability but reinforces national resilience in the face of growing global cyber threats.

This bold step is expected to unlock further investment from businesses by providing them with the confidence that their data is being managed securely in UK, allowing both Government and companies to expand their use of AI and accelerate economic growth.

Adopting AI across our economy has transformational potential. The OECD estimates AI could add 0.4 to 1.3 percentage points to the UK’s productivity growth, equivalent to as much as £140 billion to UK output each year by 2030. That’s why just this week the UK Government announced the AI Growth Lab, a safe space for regulators and businesses to test where current rules may be inhibiting responsible AI innovation and adoption.

The UK Government is also rolling out AI Growth Zones across the country to revitalise local communities by attracting billions in private investment – sparking fresh jobs while also securing Britain’s position as a global leader in the technology by serving as hotbeds for AI development.

The announcement will be made by the Deputy Prime Minister at OpenAI’s Frontiers Conference, where he will outline how AI will drive both public service reform and economic investment – from cutting reoffending to unlocking new markets and industries.

Deputy Prime Minister and Lord Chancellor David Lammy said:

New AI tools are already allowing our brilliant probation officers to spend far less time filling out paperwork and far more time face to face with offenders, making them less likely to reoffend.

But it is not just in our justice system where the Government’s technology-driven Plan for Change is improving this country. Our partnership with OpenAI places Britain firmly in the driving seat of the global tech revolution – leading the world in innovation and using technology to deliver fairness and opportunity for every corner of the United Kingdom.

OpenAI CEO Sam Altman said:

The number of people using our products in the UK has increased fourfold in the past year. It’s exciting to see them using AI to save time, increase productivity, and get more done. Civil servants are using ChatGPT to improve public services and established firms are reimagining operations. We’re proud to continue supporting the UK and the Government’s AI plan.

The Deputy Prime Minister will also separately announce that over one thousand probation officers will now be equipped with Justice Transcribe, a cutting-edge in-house AI tool that automatically records and transcribes conversations with offenders. It will cut the hours spent between these meetings manually transferring handwritten notes into digital systems, so they can focus on stopping offenders from reoffending.

By automating time-consuming tasks such as this, AI technology across the Ministry of Justice is expected to save up to 240,000 days of valuable time every year allowing frontline staff to spend more time monitoring offenders and keeping our streets safe.

The tool is one of the projects forming part of the Prime Minister’s AI Exemplars programme which are prime examples of how the government wants to use AI across the public sector to make people’s lives easier, protect the public and help deliver the Plan for Change. This includes the NHS, where frontline staff are using AI-powered transcription tools to discharge patients more quickly, freeing up beds and helping cut waiting lists.

Work is also underway with industry to upskill 7.5 million people in AI by 2030 – a fifth of the UK’s workforce - so they can use it in their day-to-day roles to boost productivity. Meanwhile AI sector champions will be appointed across key industries like life sciences and financial services to capitalise on AI’s transformative potential in these sectors.

Technology Secretary Liz Kendall said:

We’re making sure we have the infrastructure we need to power AI here in Britain so we can transform our public services, drive growth and unlock new opportunities for every community in the country. This partnership with OpenAI is a step further in delivering that.

By using AI across our public services we’re giving key workers like probation officers and NHS staff more time to focus on delivering better outcomes, reducing time spent on admin and speeding up vital services for people.

Earlier this year OpenAI and NVIDIA, as well as British firm NScale announced plans to establish Stargate UK to deliver new AI infrastructure in the UK, developing a platform designed to deploy OpenAI’s technology on sovereign infrastructure in the UK.

Phase one will see up to 8,000 NVIDIA GPUs – computer chips which are the building blocks of AI technology, able to carry out a huge number of calculations in a split second - deployed early next year, with the potential to scale to 31,000 NVIDIA GPUs over time. Stargate UK is expected be based across a number of sites in the UK, including in Cobalt Park, which will form part of the newly designated AI Growth Zone in the North East.

During his time as Foreign Secretary, the Deputy Prime Minister championed the responsible, ethical use of AI. During an address (https://www.gov.uk/government/speeches/we-must-ensure-ai-strengthens-peace-and-security-uk-statement-at-the-un-security-council) to the United Nations Security Council he warned that we’re crossing humanity’s most profound technological frontier and governments and companies must embrace AI swiftly and securely or risk falling behind.

The UK Government has already set out plans (https://www.gov.uk/government/news/engines-of-ai-primed-to-accelerate-new-breakthroughs-economic-growth-and-transform-the-uk-into-an-ai-maker) to harness AI to deliver national priorities under its Plan for Change, as it seeks to turn Britain into an AI maker, not just a taker, and driving economic growth through cutting-edge innovation and expanded computing power.

The Ministry of Justice’s AI Action Plan (https://www.gov.uk/government/news/ai-to-stop-prison-violence-before-it-happens) was launched earlier this year and sets out how the department will use AI safely, ethically, and transparently to drive innovation and justice reform.