By Jess Jones
Google has announced plans to invest $1bn (£790m) to build a new UK data centre as it tries to gain a lead in the race for artificial intelligence (AI) supremacy.
The new 33 acres of data centre space, which is crucial to the development of AI models, is set to be built in Waltham Cross, Hertfordshire.
“This new data centre will help meet growing demand for our AI and cloud services and bring crucial compute capacity to businesses across the UK while creating construction and technical jobs for the local community,” said Ruth Porat, president and chief investment officer of Alphabet and Google.
It comes as the tech mega-caps are jostling for AI dominance. In November, Microsoft committed £2.5bn to building AI infrastructure in the UK, including doubling its data centre footprint.
Technology analyst at Quilter Cheviot, Ben Barringer, said: “Hot on the heels of Microsoft’s artificial intelligence investment late last year, the government looks to have scored another victory in luring big tech to the UK with the addition of a data centre in Hertfordshire.”
But he described the investment as a “prudent” business move that is “somewhat a drop in the ocean” as the cost represents just a fraction of the giant’s annual capital expenditure.
“With approximately 30 data centres already constructed globally, it isn’t exactly going to move the needle for them by adding another,” said Barringer.
He added that the impact on job creation post-construction is likely to be limited, as data centres run with minimal staff and Google likes to keep its operations lean.
Science, innovation and technology secretary Michelle Donelan, said: “By basing their new data centre on our shores, Google are providing British businesses, including our bustling start-ups, with more reliable access to some of the world’s leading cloud technology, underpinning their innovation and success.”
Last year, Rishi Sunak broadcast his plans to make Britain a tech powerhouse. He hosted an AI Safety Summit in November, which was attended by governments and tech companies from all across the world.
Barringer said Google’s announcement marks a good start “but lots more is required before the UK can start thinking in such grand terms as a future Silicon Valley.”
