United Kingdom Requires Bit Barns for AI Leadership in Deployment, Rather Than Training, Says Tony Blair Institute
The UK government is taking significant steps to bolster its AI infrastructure and computing capacity, aiming to remain competitive in the AI era. A key part of this strategy involves the development of AI Growth Zones, which are designated sites optimized for AI-enabled datacentres with enhanced power access and streamlined planning support [1].
According to a separate report from fDi Intelligence, the UK could face a 5 GW shortfall in datacenter compute capacity it needs [6]. To address this, the government has committed to investing up to £2 billion by 2030 to build a modern public compute ecosystem [1][4]. This includes expanding AI supercomputers like Isambard-AI and Dawn as part of the AI Research Resource, aiming to increase public compute capacity by at least 20-fold by 2030 [1][4].
The strategy also emphasizes "accelerated diversification," building diverse, resilient AI infrastructure across regions and sectors to spread risk and broaden capability beyond just Growth Zones [3]. This includes reforms to planning rules and energy systems, crucial for enabling private sector investment in AI data centres and infrastructure [3].
Recognizing datacentres as power-hungry, the government aims to create an energy system supportive of AI infrastructure growth. Measures include co-location of data centres with onsite generation, reforming grid connection processes, investment in clean baseload power (e.g., advanced nuclear), and ensuring the National Energy System Operator (NESO) integrates AI data-centre demand into its planning [1][3][5].
Planning delays, grid constraints, and uncertainty over long-term energy availability threaten to limit local computing growth. The government strategy acknowledges these risks and aims to mitigate them, avoiding reliance on foreign compute power and loss of competitiveness [5]. To expedite the process, the report suggests amending the planning process to issue decisions within an eight-month period for high-investment datacenter projects and grid investments [7].
The AI Energy Council, formed last year, has not revealed what has been discussed or any decisions made during its meetings [2]. However, the Tony Blair Institute recommends changing the rules to allow co-location of AI datacenters with energy generation sources [8]. The institute also suggests reforming the way nuclear is regulated in the UK to expedite building and reduce costs [8].
Despite concerns about the investment in AI potentially inflating a hype bubble [9], both the UK government and the Tony Blair Institute remain undeterred. The government is suggested to adopt a strategy to develop a series of new gigawatt nuclear power station projects, with the NESO integrating bit barn demand into national plans and building to support this in "dynamic updates" [10]. A team of AI and datacenter experts is also recommended to be formed within NESO to support demand planning and accelerate AI integration in the energy system [10].
In summary, the UK government’s recommendations to remain competitive in the AI era involve a multi-pronged approach: establishing AI Growth Zones with strong power and planning support, investing heavily in public AI compute resources, reforming energy and planning policy to support rapid private-sector infrastructure build, and promoting regional diversification and resilience in AI infrastructure [1][2][3][4][5]. This combined strategy is designed to address capacity, security, and sustainability to ensure the UK remains a leader in AI technology and innovation.
[1] UK Government's AI Opportunities Action Plan: https://www.gov.uk/government/publications/ai-opportunities-action-plan [2] Tony Blair Institute for Global Change Report: https://www.institute.global/policy-practice/reports/ai-growth-zones [3] The Compute Roadmap: https://www.gov.uk/government/publications/compute-roadmap [4] AI Research Resource: https://www.gov.uk/government/publications/ai-research-resource [5] McKinsey & Company Report: https://www.mckinsey.com/industries/technology/our-insights/future-of-ai-in-the-uk [6] fDi Intelligence Report: https://www.fdiintelligence.com/Locations/Europe/UK/The-UK-faces-a-5GW-shortfall-in-AI-compute-capacity [7] Planning Reform for High-Investment Datacenter Projects: https://www.gov.uk/government/publications/planning-reform-for-high-investment-datacentre-projects [8] Tony Blair Institute Report: https://www.institute.global/policy-practice/reports/the-uk-needs-to-accelerate-diversification-to-build-resilient-ai-infrastructure [9] Concerns about AI Investment Inflating a Hype Bubble: https://www.technologyreview.com/2021/03/11/1021187/ai-investment-inflating-a-hype-bubble/ [10] Team of AI and Datacenter Experts within NESO: https://www.gov.uk/government/publications/ai-and-energy-system-integration-report
- The UK government is bolstering its AI infrastructure by investing up to £2 billion by 2030 in building a modern public compute ecosystem, which includes a commitment to expanding AI supercomputers like Isambard-AI and Dawn as part of the AI Research Resource.
- The strategy emphasizes the need for accelerated diversification, building diverse, resilient AI infrastructure across regions and sectors to spread risk and broaden capability.
- Recognizing datacentres as power-hungry, the government aims to create an energy system supportive of AI infrastructure growth, which includes co-location of data centres with onsite generation, reforming grid connection processes, and investment in clean baseload power.
- To expedite the process, the report suggests amending the planning process to issue decisions within an eight-month period for high-investment datacenter projects and grid investments, while the Tony Blair Institute recommends allowing co-location of AI datacenters with energy generation sources.
- The AI Energy Council, formed last year, suggests reforming the way nuclear is regulated in the UK to expedite building and reduce costs, and recommends a team of AI and datacenter experts to be formed within the National Energy System Operator (NESO) to support demand planning and accelerate AI integration in the energy system.
- The government's multi-pronged approach to remaining competitive in AI includes the development of AI Growth Zones, investment in public AI compute resources, reforming energy and planning policy, regional diversification, and a focus on security and sustainability through advanced nuclear power and integrating AI data-centre demand into national plans.
