Microsoft has unveiled a $30 billion investment plan to expand its artificial intelligence presence in the UK by 2028, the biggest single financial commitment in the company’s 40-year history in the country.

The package includes $15.5 billion for capital expenditure to build the UK’s largest AI supercomputer, equipped with more than 23,000 advanced AI chips. Due for completion in 2026, the project will form the backbone of a vast new data centre infrastructure and reinforce the UK’s position at the forefront of global AI development.

The investment builds on Microsoft’s AI research hubs in Cambridge and London and follows a series of government reforms to planning rules, energy capacity and regulation. “For AI to fully realise its potential, businesses need clarity and predictability in how they can deploy their investments, and people need confidence that these technologies are being developed and deployed responsibly,” the company said.

Prime Minister Sir Keir Starmer hailed the announcement as “a strong vote of confidence in the UK economy” and a boost to the country’s ambition to be a science and technology superpower. The timing coincides with the “Tech Prosperity Deal” signed with the United States during President Donald Trump’s state visit in September. Worth £31 billion ($42 billion), the deal covers AI, quantum computing and civil nuclear energy, with Microsoft, Nvidia, Google and OpenAI at the forefront.

Industry sources said Microsoft’s decision was also influenced by the UK’s improved business climate, including regulatory clearance for its acquisition of Activision Blizzard. Brad Smith, Microsoft’s president, praised the government’s efforts to create conditions for large-scale investment.

The company will also open a new AI office in London to recruit talent from the UK’s strong AI research base. Microsoft has already trained more than a million people in AI skills across the UK and expects its latest commitment to create thousands more jobs.

The wave of investment under the Tech Prosperity Deal signals growing confidence in the UK technology sector. With government reforms and private-sector backing aligned, Britain is positioning itself as a key global hub for responsible AI innovation and a leading player in shaping the future of this transformative technology.

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