ServiceNow, Coreweave, and others to invest $8.2B in UK AI data centers

ServiceNow, Coreweave, and several other technology companies plan to invest $8.2 billion in data centers throughout the UK. This substantial investment aims to enhance infrastructure and support the growth of artificial intelligence in the region. The funding reflects a commitment to bolstering the UK’s role in the global AI landscape and aims to drive innovation and technological advancements in the sector.

Enterprise software leader ServiceNow and AI-focused startup CoreWeave have unveiled plans to invest billions in the U.K., signaling support for Prime Minister Keir Starmer's efforts to attract foreign investment.

ServiceNow announced it will invest $1.5 billion in the U.K. over the next five years to expand its operations. The company intends to increase its U.K. workforce beyond the current 1,000 employees and acquire new office space.

The company also plans to allocate funds to localize data processing for its large language models (LLMs), which require extensive training data to generate human-like text.

ServiceNow stated it will introduce Nvidia GPUs (graphics processing units) to its data centers in London and Newport, Wales, to facilitate LLM data processing within the U.K. This move aims to support the development of “domain-specific LLMs” for U.K. clients and government agencies.

European policymakers and regulators have increasingly advocated for AI sovereignty, which emphasizes that technologies and data supporting advanced AI systems should be stored in Europe and better reflect European culture and history.

CoreWeave, a cloud computing firm that leases high-cost GPUs for developing large AI models, announced a £750 million ($978.6 million) investment to meet U.K. AI infrastructure demands, marking its second significant investment in the region after a £1 billion commitment in May.

Additionally, two U.S. data center operators revealed plans to invest billions in the U.K. CyrusOne intends to increase its investment in the country to £2.5 billion over the coming years, while CloudHQ has committed to creating a new £1.9 billion data center campus in Didcot, Oxfordshire.

Overall, the cloud infrastructure investments total £6.3 billion, according to the U.K. government.

“Today’s wave of investment demonstrates confidence in Britain and our collaboration with businesses to drive sustained growth for everyone,” stated U.K. Technology Minister Peter Kyle on Monday.

ServiceNow also announced plans to launch new skills programs in the U.K., aiming to reach 240,000 individuals.

“The United Kingdom is embracing technology transformation on a large scale. In this AI era, it remains a global leader in fostering innovation for the benefit of all communities,” said Bill McDermott, ServiceNow’s CEO, in a statement.

“Our investment propels the U.K.’s initiative to leverage AI, empowering individuals, enhancing experiences, and reinforcing societal ties. Together with our U.K. customers, ServiceNow is shaping a future where technology serves everyone.”

These announcements were made during the International Investment Summit, where U.K. leader Keir Starmer is gathering 300 business leaders to promote foreign investment.

ServiceNow, CoreWeave, CyrusOne, and CloudHQ are among the U.S. tech companies making significant investments in the U.K. as a leading hub for AI innovation. Earlier this year, Salesforce launched its first global AI center in London, dedicated to facilitating AI training and upskilling initiatives while fostering industry collaboration.

This AI center is part of Salesforce's $4 billion investment commitment to the U.K. over five years, announced in June last year.

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Source: cnbc‍