UK Will Explore Nuclear Power for New AI Data Center Plan
Jan 12, 2025 - financialpost.com
The UK is planning to establish special districts called “AI Growth Zones” for constructing data centers, with a focus on utilizing nuclear energy to power these sites. This initiative is part of a Labour government project aimed at boosting technology growth and the AI ecosystem. The first zone will be in Culham, home to the UK Atomic Energy Authority. The government plans to form an energy council to explore powering the data centers with small modular reactors. This move is in response to the high energy demands of AI systems and is part of broader proposals to enhance AI in public services, expand supercomputing projects, and attract technical talent to the UK.
Vantage Data Centers and Nscale have announced significant investments in the UK as part of this initiative, with Vantage planning to invest over £12 billion and Nscale $2.5 billion over three years. The Labour party, led by Keir Starmer, has positioned AI as central to its economic agenda, although it has faced criticism for slow policy development and mixed messaging. The plan comes amid economic challenges, including turmoil in Britain’s bond market, reflecting investor concerns about the government's debt management capabilities.
Key takeaways:
The UK plans to create special districts for data centers, exploring nuclear energy as a power source.
These "AI Growth Zones" will offer enhanced electricity access and easier planning approvals.
An energy council will explore using small modular reactors for powering data centers.
Vantage Data Centers and Nscale plan significant investments in UK data centers as part of this initiative.
