Microsoft has confirmed a rollout of next generation AI data centres in the UK as part of a £2.5bn investment, with South Wales identified as a key location.
In the largest investment in its 40-year history in the UK, the American tech giant is expanding its AI infrastructure across sites in London, the Cardiff Capital Region and potentially also into northern England.
It said the new facilities will meet the “exploding demand” for efficient, scalable and sustainable AI specific compute power. Datacentres process, host and store the massive amounts of digital information that is critical for developing AI models.
The data centres will be delivered over the next three years. Microsoft has also confirmed a multi-million pound investment to train one million people with the skills they need to build and work with AI.
Microsoft UK chief executive, Clare Barclay, said: “The pace of change in AI demands action today to build a prosperous future for the UK tomorrow. This marks the single largest investment in our more than 40-year history in the UK.
“As business and the public sector embrace the AI opportunity, we are building the infrastructure that will support the growth they need, training the people who can deliver it responsibly and securing our society against emergent threats”.
Microsoft wouldn’t confirmed where it plans to investment in the Cardiff Capital. However, it is currently undertaking a pre-planning consultation for a proposed major data centre investment in Newport - at the site of the former Quinn Radiators building at Imperial Park.
The existing 760,000 sq ft empty building - which was initially part of LG’s electronics operation in Newport - will be demolished to make way for two hyperscale data centres, with supporting buildings, extending to 370,000 sq ft. Once fully operational they will create 120 jobs
Microsoft wouldn’t confirm if the Newport project forms part of it latest investment announcement. However, its draft planning application, says: “Microsoft has the ambition to establish an ‘availability zone with several data centres in South Wales; the proposed development on the Quinn site is part of realising this ambition.”
Leader of Newport City Council and Cardiff Capital Region’s portfolio lead on data-driven economy and skills, Jane Mudd, said: “This is a welcome and vital boost to the UK economy and will continue to build on AI capability within Cardiff Capital Region. The region’s focus on industrial clusters - including fintech, cyber security and compound semiconductors - means we are increasingly gaining a reputation in the UK and beyond for technology-enabled innovation. We look forward to developing closer ties with Microsoft as they help to create new infrastructure in AI here and beyond.”
Welcoming the investment by Microsoft Secretary of State for Wales, David TC Davies, said: “South Wales is home to a significant and growing tech industry and it is fantastic to see it develop still further with Microsoft’s UK expansion plans.
“The UK Government is playing a leading role in supporting the tech and research sectors as well as developing the UK as an AI superpower. These areas are central to growing our economy and south east Wales is at the forefront of these emerging industries."
