As billions pour into UK AI infrastructure, are we building an AI-powered economy for British business—or leasing it from Silicon Valley?
The UK Government has made AI a centrepiece of its industrial strategy, pledging to transform the country into a global hub for artificial intelligence by 2030. Over £44 billion has been invested into the AI sector since 2024, AI Growth Zones are beginning to take shape, and a headline-grabbing commitment has been made to train 7.5 million workers in AI skills. The ambition is real, and the momentum is undeniable.
But a closer look reveals a more complicated picture. Beneath the surface of investment headlines and strategic plans lies a growing divide. As the UK throws its weight behind an AI-powered future, a crucial question emerges: are we building a thriving, sovereign AI ecosystem for British businesses to grow? Or are we laying the foundations for foreign tech giants to dominate the landscape?
Investment or Occupation?
At first glance, the investment figures are impressive. But much of this capital is flowing in from overseas – particularly from the United States. Amazon Web Services has committed £8 billion to new UK data centres. Oracle, CoreWeave, Anthropic, and others are expanding their footprint. Google’s DeepMind continues to grow from its London base, but its strategic direction is ultimately decided in California.
While these investments bring jobs and boost local economies, they also raise serious questions about control and long-term value. Data centres may sit on British soil, but the compute infrastructure, IP ownership, and strategic direction often remain in U.S. hands. The result? Britain gets the building sites, but not necessarily the business models.
The Government’s own direct AI-related investment, by contrast, is around £3.25 to £3.75 billion over the next decade. For every £1 of public funding, the private sector—largely foreign—has committed over £10. The imbalance is stark. And unless corrected, the future of British AI may be built here, but owned elsewhere.
Can SMEs Compete?
For the average UK business, especially SMEs, the AI revolution is more distant than it might seem. Most small firms lack the budget to hire AI engineers or the scale to warrant custom solutions. Accessing the high-performance compute infrastructure underpinning AI development is often beyond reach.
These companies don’t need multimillion-pound supercomputers. They need affordable, accessible tools that solve real problems—automating admin, improving customer service, optimising logistics. And they need hands-on support to implement those tools effectively.
Yet, the current policy environment seems geared more toward attracting headline investment than democratising access. Without targeted interventions, the AI boom could end up reinforcing the advantages of big tech players, while smaller British firms are left behind.
Skills Are Only Part of the Puzzle
The government’s pledge to upskill 7.5 million people in AI tools by 2030 is ambitious and necessary. But training alone doesn’t guarantee adoption. Without access to the tools, infrastructure, and support that make AI actionable in a business context, much of that learning could go unused.
Many SMEs lack the digital maturity to move from AI theory to AI practice. Even among those who see the potential, the time, cost, and risk involved in implementing new technologies remain major barriers.
To bridge this gap, the UK needs more than just courses and certificates. It needs a joined-up support model that brings compute, talent, and deployment pathways within reach of small business owners.
Wooden Dollars and the Value Divide
It’s worth asking how much of this £44 billion is truly building UK economic strength. A large portion of the capital—especially from data centre operators and cloud giants—is effectively “wooden dollars.” That is, it boosts on-paper investment totals, but much of the real value flows back to foreign HQs.
These are not bad investments. They bring jobs, innovation, and prestige. But they also raise questions of sovereignty. If the infrastructure, tools, and intellectual property are foreign-owned, the UK risks becoming a tenant in its own AI economy.
This makes the case for stronger, clearer support for UK companies — especially small and medium-sized businesses.
How Is the UK Government Supporting UK Companies?
The Government is taking steps, but they may not go far enough. Some key initiatives include:
- The Sovereign AI Unit (£500 million): Designed to support homegrown AI capabilities with access to data, compute, and funding.
- AI Adoption Fund: Intended to help UK businesses integrate AI, though specific funding levels remain unclear.
- TechFirst Programme: Aims to support AI upskilling through bursaries and PhD placements.
- Shared supercomputing infrastructure: Projects like Isambard-AI and Dawn are meant to serve the wider ecosystem, but access for SMEs is not yet clearly defined.
- Cyber Runway & CyberASAP: Sector-specific support for innovation and commercialisation in cyber security startups.
These programmes are welcome, but fragmented. The challenge is not just creating infrastructure or offering training — it’s connecting the dots for SMEs so they can affordably adopt AI tools, hire skilled talent, and scale their ideas.
Will AI Growth Zones Deliver?
Culham in Oxfordshire is the first of several AI Growth Zones designed to anchor regional AI clusters. These zones promise to attract investment, create jobs, and provide new infrastructure. But their long-term impact will depend on who gets access.
Will these zones prioritise collaboration and inclusion? Or will they become gated communities for elite institutions and large corporations? Without careful design and governance, they risk replicating the very inequalities they were meant to address.
Building a Fairer AI Future
There is still time to close the gap. A fairer, more balanced approach to AI development and adoption could include shared-access compute hubs, voucher schemes to subsidise AI adoption in SMEs, and regional innovation centres that focus on real-world use cases.
Policymakers must ensure that investment in infrastructure and talent doesn’t just orbit the gravitational pull of big tech. It must land meaningfully in the hands of those building the businesses of tomorrow.
Conclusion: Let’s Not Rent the Future
The UK has the ingredients to be a true AI leader: world-class research, ambitious entrepreneurs, and a rich network of tech clusters. But ambition must be matched with inclusion. If we’re not careful, we’ll wake up in a country with world-leading AI infrastructure—that only a handful of companies truly control.
Let’s not build an AI-powered economy we have to rent. Let’s build one we own.
What do you think? Are SMEs being left behind in the AI race? What kind of support would help your business adopt AI? Let’s discuss.
