Training and deploying sophisticated AI models occur within vast, power-hungry data centres. A “typical AI-focused data centre consumes as much electricity as 100 000 households,” the IEA notes, with the largest facilities under construction projected to demand 20x times that amount.

Surging data centre investments

Global investment in data centres has nearly doubled since 2022, reaching half a trillion dollars in 2024, sparking concerns about escalating electricity needs.

While data centres accounted for approximately 1.5% of global electricity consumption in 2024 (around 415 terawatt-hours, TWh,) their local impact is far more significant. Consumption has grown annually by about 12% since 2017, vastly outpacing overall electricity demand growth.

The US leads this consumption (45%), followed by China (25%) and Europe (15%). Almost half of US data centre capacity is concentrated in just five regional clusters.

Looking ahead, the IEA projects global data centre electricity consumption to more than double by 2030 to reach approximately 945 TWh. To put that in context, that’s slightly more than Japan’s current total electricity consumption.

AI is pinpointed as the “most important driver of this growth”. The US is projected to see the largest increase, where data centres could account for nearly half of all electricity demand growth by 2030. By the decade’s end, US data centres are forecast to consume more electricity than the combined usage of its aluminium, steel, cement, chemical, and other energy-intensive manufacturing industries.

The IEA’s “Base Case” extends this trajectory, anticipating around 1,200 TWh of global data centre electricity consumption by 2035. However, significant uncertainties exist, with projections for 2035 ranging from 700 TWh (“Headwinds Case”) to 1,700 TWh (“Lift-Off Case”) depending on AI uptake, efficiency gains, and energy sector bottlenecks.

Fatih Birol, Executive Director of the IEA, said: “AI is one of the biggest stories in the energy world today – but until now, policymakers and markets lacked the tools to fully understand the wide-ranging impacts.

“In the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”

Meeting the global AI energy demand

Powering this AI boom requires a diverse energy portfolio. The IEA suggests renewables and natural gas will take the lead, but emerging technologies like small modular nuclear reactors (SMRs) and advanced geothermal also have a role.

Renewables, supported by storage and grid infrastructure, are projected to meet half the growth in data centre demand globally up to 2035. Natural gas is also crucial, particularly in the US, expanding by 175 TWh to meet data centre needs by 2035 in the Base Case. Nuclear power contributes similarly, especially in China, Japan, and the US, with the first SMRs expected around 2030.

However, simply increasing generation isn’t sufficient. The IEA stresses the critical need for infrastructure upgrades, particularly grid investment. Existing grids are already strained, potentially delaying around 20% of planned data centre projects globally due to complex connection queues and long lead times for essential components like transformers.

The potential of AI to optimise energy systems

Beyond its energy demands, AI offers significant potential to revolutionise the energy sector itself.

The IEA details numerous applications:

• Energy supply: The oil and gas industry – an early adopter – uses AI to optimise exploration, production, maintenance, and safety, including reducing methane emissions. AI can also aid critical mineral exploration.
• Electricity sector: AI can improve forecasting for variable renewables, reducing curtailment. It enhances grid balancing, fault detection (reducing outage durations by 30-50%), and can unlock significant transmission capacity through smarter management—potentially 175 GW without building new lines.
• End uses: In industry, widespread AI adoption for process optimisation could yield energy savings equivalent to Mexico’s total energy consumption today. Transport applications like traffic management and route optimisation could save energy equivalent to 120 million cars, though rebound effects from autonomous vehicles need monitoring. Building optimisation potential is significant but hampered by slower digitalisation.
• Innovation: AI can dramatically accelerate the discovery and testing of new energy technologies, such as advanced battery chemistries, catalysts for synthetic fuels, and carbon capture materials. However, the energy sector currently underutilises AI for innovation compared to fields like biomedicine.

Collaboration is key to navigating challenges

Despite the potential, significant barriers hinder AI’s full integration into the energy sector. These include data access and quality issues, inadequate digital infrastructure and skills (AI talent concentration is lower in energy sectors,) regulatory hurdles, and security concerns.

Cybersecurity is a double-edged sword: while AI enhances defence capabilities, it also equips attackers with sophisticated tools. Cyberattacks on utilities have tripled in the last four years.

Supply chain security is another critical concern, particularly regarding critical minerals like gallium (used in advanced chips,) where supply is highly concentrated.

The IEA concludes that deeper dialogue and collaboration between the technology sector, the energy industry, and policymakers are paramount. Addressing grid integration challenges requires smarter data centre siting, exploring operational flexibility, and streamlining permitting.

While AI presents opportunities for substantial emissions reductions through optimisation, exceeding the emissions generated by data centres, these gains are not guaranteed and could be offset by rebound effects.

“AI is a tool, potentially an incredibly powerful one, but it is up to us – our societies, governments, and companies – how we use it,” said Dr Birol.

“The IEA will continue to provide the data, analysis, and forums for dialogue to help policymakers and other stakeholders navigate the path ahead as the energy sector shapes the future of AI, and AI shapes the future of energy.”

(Photo by Javier Miranda)

See also: UK forms AI Energy Council to align growth and sustainability goals

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The inaugural meeting of the council will see members agree on its core objectives, with a central focus on how the government’s mission to become a clean energy superpower can support its commitment to advancing AI and compute infrastructure.

Unveiled earlier this year as part of the government’s response to the AI Opportunities Action Plan, the council will serve as a crucial platform for bringing together expert insights on the significant energy demands associated with the AI sector.

Concerns surrounding the substantial energy requirements of AI data centres are a global challenge. The UK is proactively addressing this issue through initiatives like the establishment of new AI Growth Zones.

These zones are dedicated hubs for AI development that are strategically located in areas with access to at least 500MW of power—an amount equivalent to powering approximately two million homes. This approach is designed to attract private investment from companies looking to establish operations in Britain, ultimately generating local jobs and boosting the economy.

Peter Kyle, Secretary of State for Science, Innovation, and Technology, said: “The work of the AI Energy Council will ensure we aren’t just powering our AI needs to deliver new waves of opportunity in all parts of the country, but can do so in a way which is responsible and sustainable.

“This requires a broad range of expertise from industry and regulators as we fire up the UK’s economic engine to make it fit for the age of AI—meaning we can deliver the growth which is the beating heart of our Plan for Change.”

The Council is also expected to delve into the role of clean energy sources, including renewables and nuclear, in powering the AI revolution.

A key aspect of its work will involve advising on how to improve energy efficiency and sustainability within AI and data centre infrastructure, with specific considerations for resource usage such as water. Furthermore, the council will take proactive steps to ensure the secure adoption of AI across the UK’s critical energy network itself.

Ed Miliband, Secretary of State for Energy Security and Net Zero, commented: “We are making the UK a clean energy superpower, building the homegrown energy this country needs to protect consumers and businesses, and drive economic growth, as part of our Plan for Change.

“AI can play an important role in building a new era of clean electricity for our country and as we unlock AI’s potential, this Council will help secure a sustainable scale up to benefit businesses and communities across the UK.”

In a parallel effort to facilitate the growth of the AI sector, the UK government has been working closely with energy regulator Ofgem and the National Energy System Operator (NESO) to implement fundamental reforms to the UK’s connections process.

Subject to final sign-offs from Ofgem, these reforms could potentially unlock more than 400GW of capacity from the connection queue. This acceleration of projects is deemed vital for economic growth, particularly for the delivery of new large-scale AI data centres that require significant power infrastructure.

The newly-formed AI Energy Council comprises representatives from 14 key organisations across the energy and technology sectors, including regulators and leading companies. These members will contribute their expert insights to support the council’s work and ensure a collaborative approach to addressing the energy challenges and opportunities presented by AI.

Among the prominent organisations joining the council are EDF, Scottish Power, National Grid, technology giants Google, Microsoft, Amazon Web Services (AWS), and chip designer ARM, as well as infrastructure investment firm Brookfield.

This collaborative framework, uniting the energy and technology sectors, aims to ensure seamless coordination in speeding up the connection of energy projects to the national grid. This is particularly crucial given the increasing number of technology companies announcing plans to build data centres across the UK.

Alison Kay, VP for UK and Ireland at AWS, said: “At Amazon, we’re working to meet the future energy needs of our customers, while remaining committed to powering our operations in a more sustainable way, and progressing toward our Climate Pledge commitment to become net-zero carbon by 2040.

“As the world’s largest corporate purchaser of renewable energy for the fifth year in a row, we share the government’s goal to ensure the UK has sufficient access to carbon-free energy to support its AI ambitions and to help drive economic growth.”

Jonathan Brearley, CEO of Ofgem, added: “AI will play an increasingly important role in transforming our energy system to be cleaner, more efficient, and more cost-effective for consumers, but only if used in a fair, secure, sustainable, and safe way.

“Working alongside other members of this Council, Ofgem will ensure AI implementation puts consumer interests first – from customer service to infrastructure planning and operation – so that everyone feels the benefits of this technological innovation in energy.”

This initiative aligns with the government’s Clean Power Action Plan, which focuses on connecting more homegrown clean power to the grid by building essential infrastructure and prioritising projects needed for 2030. The aim is to clear the grid connection queue, enabling crucial infrastructure projects – from housing to gigafactories and data centres – to gain access to the grid, thereby unlocking billions in investment and fostering economic growth.

Furthermore, the government is streamlining planning approvals to significantly reduce the time it takes for infrastructure projects to get off the ground. This accelerated process will ensure that AI innovators can readily access cutting-edge infrastructure and the necessary power to drive forward the next wave of AI advancements.

(Photo by Vlad Hilitanu)

See also: Tony Blair Institute AI copyright report sparks backlash

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The government has committed to all 50 recommendations outlined in the ambitious AI Opportunities Action Plan created by Matt Clifford CBE, tech entrepreneur and chair of the Advanced Research and Invention Agency.

“Our plan will make Britain the world leader,” declared Starmer. “That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services. That’s the change this government is delivering.”

The plan positions AI as a key driver of national progress, aiming to revolutionise public services, boost productivity, and establish the UK as a global leader in the field.

Chris Lehane, Chief Global Affairs Officer at OpenAI, said: “From the locomotive to the Colossus computer, the UK has a rich history of leadership in tech innovation and the research and development of AI.

“The government’s AI action plan – led by the Prime Minister and Secretary Peter Kyle – recognises where AI development is headed and sets the UK on the right path to benefit from its growth. The UK has an enormous national resource in the talent of its people, institutions, and businesses which together can leverage AI to advance the country’s national interest.”

A plan to unlock economic potential

The economic benefits of AI adoption form a central tenet of the government’s strategy. The International Monetary Fund estimates that embracing AI could increase productivity by 1.5 percentage points annually. Over a decade, this could add up to £47 billion in economic gains per year, according to Treasury calculations.

The strategy aims not only to grow the economy but to create tangible benefits for citizens.

Dr Jean Innes, CEO of the Alan Turing Institute, said: “This plan offers an exciting route map, and we welcome its focus on adoption of safe and responsible AI, AI skills, and an ambition to sustain the UK’s global leadership, putting AI to work driving growth, and delivering benefits for society.

“We share these ambitions and look forward to working with the government, universities, industry and civil society to shape the future of these technologies to support the UK’s success and improve people’s lives.”

Three major companies – Vantage Data Centres, Nscale, and Kyndryl – have already pledged a combined £14 billion in investments, creating 13,250 jobs across the country and reinforcing confidence in the UK’s AI potential. This adds to the £25 billion in commitments secured at last year’s International Investment Summit.

Vantage Data Centres is set to invest over £12 billion in UK data centre projects, including one of Europe’s largest data centre campuses in Wales. Meanwhile, Kyndryl will establish a new tech hub in Liverpool—creating up to 1,000 AI-related jobs. Nscale plans to back UK data centre infrastructure with a $2.5 billion investment, which includes the construction of the nation’s largest sovereign AI data centre in Essex by 2026.

Alison Kay, VP for UK and Ireland at Amazon Web Services (AWS), said: “At AWS, we’ve seen first-hand the benefits that digital technologies like AI can bring, and that’s why we’ve announced plans to invest £8 billion over the next five years building, operating, and maintaining data centres in the UK.

“By putting close industry collaboration and public-private partnership at the heart of the government’s agenda, every citizen, community and business in every region of the UK will have the opportunity to realise the benefits of AI, and thrive and grow.”

Zahra Bahrololoumi CBE, CEO of Salesforce UK and Ireland, added: “Businesses in the UK are in a prime position to fully unlock the opportunities of AI, thanks to a strong innovation culture and risk-based laws. That is why Salesforce chose the UK as the location of its first-ever AI Centre, building on our commitment to invest $4 billion in our UK operations to harness the transformational power of AI.”

Transforming public services  

AI is already being deployed within UK hospitals, helping to modernise the NHS by diagnosing conditions such as breast cancer more swiftly, improving care for non-verbal patients, and expediting patient discharges.

“NHS datasets could be invaluable for impactful AI innovations in healthcare,” said Dr Bilal, Professor of Applied AI and Technology Ethics at Birmingham City University. “But they remain largely inaccessible to many researchers due to prohibitive costs and logistical hurdles.”

“Initiatives like NHS Secure Data Environments are a great start but must be made more affordable, or ideally free, for academic institutions.

Beyond healthcare, the government is betting that broader adoption of AI could achieve similar efficiencies in other public sectors. For instance, the plan highlights its potential to reduce administrative workloads for teachers, speed up planning consultations to facilitate new housing developments, and even identify potholes on roads via AI-enhanced cameras to expedite repairs.

The new strategy introduces AI Growth Zones, designed to accelerate the development of critical infrastructure. These zones will not only expedite planning permissions but also ensure dedicated energy connections to power AI projects. The first such zone will be established in Culham, Oxfordshire.  

Building AI infrastructure  

Supporting the UK’s AI aspirations requires significant investment in infrastructure. The plan includes:  

• A twentyfold increase in public compute capacity, with immediate work commencing on a new supercomputer to support AI advancements.  
• The creation of a National Data Library, designed to safely unlock the potential of public data to fuel AI innovation.  
• The establishment of a dedicated AI Energy Council, chaired by the Science and Energy Secretaries, to address the energy demands of AI development. This aligns with the government’s goal of becoming a clean energy superpower.  
• A new government team tasked with developing the UK’s sovereign AI capabilities.  

The government also aims to provide stability for businesses by balancing the dynamism of the US and the regulatory guardrails seen in the EU.

Science, Innovation, and Technology Secretary Peter Kyle said the UK would leverage its unique strengths: “We already have remarkable strengths we can tap into when it comes to AI—building our status as the cradle of computer science and intelligent machines and establishing ourselves as the third largest AI market in the world.”

Reservations and risks with the AI action plan

While the ambitious plan has been met with enthusiasm by many, industry experts caution against overlooking the potential risks posed by unregulated AI deployment.

Dr Pia Hüsch, Research Fellow in Cyber, Technology and National Security at RUSI, commented: “Labour’s AI Opportunities Action Plan has economic growth as the top priority, shifting focus away from the previous government’s priorities around AI safety and regulation.

“While the focus on investing in infrastructure such as computing power and a national data library is welcome, the UK Government must not forget risks posed by AI technologies or the international partnerships that are needed to secure long-term benefit from AI technologies.”

Similarly, Deryck Mitchelson, Global Chief Information Security Officer at Check Point Software, expressed concerns about security and ethics: “AI integration without airtight security measures will only amplify these risks. External oversight of AI models and training datasets is essential—not optional.

“We need built-in equality, ethics, and a transparent framework to measure outcomes and prove these systems genuinely enhance performance, not just cut costs.”  

Mitchelson warned that hasty deployment could erode public trust in AI-driven services and deepen inequality. He emphasised that the government must present this initiative as more than a cost-saving strategy and instead prioritise transparency, accountability, and robust safeguards.  

The AI Opportunities Action Plan is a key pillar of the government’s Industrial Strategy and the first stage of a forthcoming Digital and Technology Sector Plan. It also ties into the government’s broader Plan for Change, aiming to ensure AI’s benefits are felt across every corner of the UK.

Chancellor Rachel Reeves MP underscored the initiative’s dual focus on economic growth and public service transformation: “AI is a powerful tool that will help grow our economy, make our public services more efficient and open up new opportunities to help improve living standards.

“This action plan is the government’s modern industrial strategy in action.”  

As the UK accelerates efforts to harness AI, it faces the dual challenge of staying ahead in the global race for innovation while ensuring the potential pitfalls of the technology are minimised. Today’s announcements mark a bold step forward, but the road ahead will require careful navigation.

See also: Sam Altman, OpenAI: ‘Lucky and humbling’ to work towards superintelligence

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In this article, we delve deeper into the key findings and implications—drawing on additional sources to enhance our understanding.

Thriving industry with significant growth

The study highlights the remarkable growth of the UK’s AI sector. With over 3,170 active AI companies, these firms have generated £10.6 billion in AI-related revenues and employed more than 50,000 people in AI-related roles. This significant contribution to GVA (Gross Value Added) underscores the sector’s transformative potential in driving the UK’s economic growth.

Mark Boost, CEO of Civo, said: “In a space that’s been dominated by US companies for too long, it’s promising to see the government now stepping up to help support the UK AI sector on the global stage.”

The study shows that AI activity is dispersed across various regions of the UK, with notable concentrations in London, the South East, and Scotland. This regional dispersion indicates a broad scope for the development of AI technology applications across different sectors and regions.

Investment and funding

Investment in the AI sector has been a key driver of growth. In 2022, £18.8 billion was secured in private investment since 2016, with investments made in 52 unique industry sectors compared to 35 sectors in 2016.

The government’s commitment to supporting AI is evident through significant investments. In 2022, the UK government unveiled a National AI Strategy and Action Plan—committing over £1.3 billion in support for the sector, complementing the £2.8 billion already invested.

However, as Boost cautions, “Major players like AWS are locking AI startups into their ecosystems with offerings like $500k cloud credits, ensuring that emerging companies start their journey reliant on their infrastructure. This not only hinders competition and promotes vendor lock-in but also risks stifling innovation across the broader UK AI ecosystem.”

Addressing bottlenecks

Despite the growth and investment, several bottlenecks must be addressed to fully harness the potential of AI:

• Infrastructure: The UK’s digital technology infrastructure is less advanced than many other countries. This bottleneck includes inadequate data centre infrastructure and a dependent supply of powerful GPU computer chips. Boost emphasises this concern, stating “It would be dangerous for the government to ignore the immense compute power that AI relies on. We need to consider where this power is coming from and the impact it’s having on both the already over-concentrated cloud market and the environment.”

• Commercial awareness: Many SMEs lack familiarity with digital technology. Almost a third (31%) of SMEs have yet to adopt the cloud, and nearly half (47%) do not currently use AI tools or applications.

• Skills shortage: Two-fifths of businesses struggle to find staff with good digital skills, including traditional digital roles like data analytics or IT. There is a rising need for workers with new AI-specific skills, such as prompt engineering, that will require retraining and upskilling opportunities.

To address these bottlenecks, the government has implemented several initiatives:

• Private sector investment: Microsoft has announced a £2.5 billion investment in AI skills, security, and data centre infrastructure, aiming to procure more than 20,000 of the most advanced GPUs by 2026.

• Government support: The government has invested £1.5 billion in computing capacity and committed to building three new supercomputers by 2025. This support aims to enhance the UK’s infrastructure to stay competitive in the AI market.

• Public sector integration: The UK Government Digital Service (GDS) is working to improve efficiency using predictive algorithms for future pension scheme behaviour. HMRC uses AI to help identify call centre priorities, demonstrating how AI solutions can address complex public sector challenges.

Future prospects and challenges

The future of the UK AI sector is both promising and challenging. While significant economic gains are predicted, including boosting GDP by £550 billion by 2035, delays in AI roll-out could cost the UK £150 billion over the same period. Ensuring a balanced approach between innovation and regulation will be crucial.

Boost emphasises the importance of data sovereignty and privacy: “Businesses have grown increasingly wary of how their data is collected, stored, and used by the likes of ChatGPT. The government has a real opportunity to enable the UK AI sector to offer viable alternatives.

“The forthcoming AI Action Plan will be another opportunity to identify how AI can drive economic growth and better support the UK tech sector.”

• AI Safety Summit: The AI Safety Summit at Bletchley Park highlighted the need for responsible AI development. The “Bletchley Declaration on AI Safety” emphasises the importance of ensuring AI tools are transparent, fair, and free from bias to maintain public trust and realise AI’s benefits in public services.

• Cybersecurity challenges: As AI systems handle sensitive or personal information, ensuring their security is paramount. This involves protecting against cyber threats, securing algorithms from manipulation, safeguarding data centres and hardware, and ensuring supply chain security.

The AI sector study underscores a thriving industry with significant growth potential. However, it also highlights several bottlenecks that must be addressed – infrastructure gaps, lack of commercial awareness, and skills shortages – to fully harness the sector’s potential.

(Photo by John Noonan)

See also: EU AI Act: Early prep could give businesses competitive edge

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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The announcement, made during the International Investment Summit, was welcomed by Technology Secretary Peter Kyle as a “vote of confidence” in Britain’s approach to partnering with businesses to drive growth.

CyrusOne, ServiceNow, CloudHQ, and CoreWeave have all committed to substantial investments, bringing the total investment in UK data centres to over £25 billion since the current government took office. These new facilities will provide the UK with increased computing power and data storage capabilities, essential for training and deploying next-generation AI technologies.

“Tech leaders from all over the world are seeing Britain as the best place to invest with a thriving and stable market for data centres and AI development,” stated Kyle.

The largest single investment comes from Washington DC-based CloudHQ, which plans to develop a £1.9 billion data centre campus in Didcot, Oxfordshire. This hyper-scale facility is expected to create 1,500 jobs during construction and 100 permanent positions once operational.

ServiceNow has pledged £1.15 billion over the next five years to expand its UK operations. This investment will support AI development, expand data centres with Nvidia GPUs for local processing of LLM data, and grow the company’s UK workforce beyond its current 1,000 employees. ServiceNow also plans to offer new skills programmes to reach 240,000 UK learners.

ServiceNow’s AI platform is already utilised by 85% of Fortune 500 companies and more than half of the FTSE100. In the UK, the company works with organisations including BT Group, Aston Martin Aramco Formula One Team, and hundreds of public sector bodies such as the NHS and the Department for Work and Pensions.

Rachel Reeves, Chancellor of the Exchequer, commented: “This investment is a huge vote of confidence in the UK’s tech and AI sector, and is exactly the kind we want to see as we grow the economy. That’s what the International Investment Summit is all about too. Showing global investors and business that Britain is open for business.”

CyrusOne, a leading global data centre developer, announced plans to invest £2.5 billion in the UK over the coming years. Subject to planning permission, their projects are expected to be operational by Q4 2028 and create over 1,000 jobs.

AI hyperscaler CoreWeave confirmed an additional £750 million investment to support the next generation of AI cloud infrastructure, building on its £1 billion investment announced in May.

These investments follow recent commitments from other tech giants, including Blackstone’s £10 billion investment in the North East of England and Amazon Web Services’ plan to invest £8 billion in UK data centres over the next five years.

The UK government has been actively supporting the growth of data infrastructure and the broader tech sector. Last month, data centres were classified as ‘Critical National Infrastructure’ (CNI), providing the industry with greater government support. Additionally, the Tech Secretary appointed entrepreneur Matt Clifford to develop an AI Opportunities Action Plan, aimed at boosting AI adoption across the economy.

As part of the ongoing International Investment Summit, Prime Minister Keir Starmer is bringing together 300 industry leaders to catalyse investment in the UK. The summit will see discussions on how the UK can capitalise on emerging growth sectors including health tech, AI, clean energy, and creative industries.

Bill McDermott, Chairman and CEO of ServiceNow, said: “The UK is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities.

“Our investment accelerates the UK’s push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the UK are delivering a future where technology benefits everyone.”

The series of investments and government initiatives bolstering UK data infrastructure aims to secure the country’s leadership in AI and technology innovation within Europe, and reinforces it as an attractive destination for international tech companies seeking to expand their operations.

(Photo by Freddie Collins)

See also: King’s Business School: How AI is transforming problem-solving

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The tech giant is set to unveil new data centres in Madrid and has outlined its intention to construct additional centres in Aragon, catering to European companies and public entities. The increased European infrastructure aims to deliver Microsoft’s cloud services with heightened security, privacy, and data sovereignty measures, facilitating access to the company’s full suite of AI solutions for businesses and public administrations in the region.

According to an analysis by IDC, these new Microsoft data centres have the potential to contribute €8.4 billion to the national GDP and help to generate 69,000 jobs from 2026 to 2030.

The commitment to investment aligns with a collaborative agreement forged between the President of the Government, Pedro Sánchez, and Microsoft President Brad Smith. Under this collaboration, Microsoft and the Government of Spain will collaborate on various initiatives aimed at advancing responsible AI, enhancing citizen services, and bolstering national cybersecurity and resilience across Spanish companies, public bodies, and critical infrastructures.

This partnership operates within the framework of the National Strategy for Artificial Intelligence and the National Cybersecurity Strategy outlined by the Spanish government. It revolves around four key action points:

1. Extension of AI in public administration: Efforts will be directed towards modernising administrative processes and equipping officials with AI tools to boost efficiency. This includes deploying generative AI solutions and implementing AI training plans for officials.

2. Promotion of responsible AI: Microsoft will share its responsible AI design standards, along with implementation guides and best practices documentation, with the Spanish Agency for the Supervision of Artificial Intelligence (AESIA).

3. Strengthening national cybersecurity: Collaboration with the National Cryptological Center (CNI) aims to enhance early warning mechanisms and response to cybersecurity incidents in public administrations.

4. Improving cyber-resilience of companies: Microsoft will collaborate with the National Institute of Cybersecurity (INCIBE) to enhance the cybersecurity posture of Spanish companies, particularly SMEs, by providing access to threat intelligence and conducting joint outreach initiatives.

Microsoft’s increased investment underscores its commitment to advancing technological innovation in Spain while fostering a secure and responsible digital ecosystem.

(Photo by engin akyurt on Unsplash)

See also: Wipro and IBM collaborate to propel enterprise AI

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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