tech
March 9, 2026
Revealed: UK’s multibillion AI drive is built on ‘phantom investments’
Exclusive: Rented datacentres and ‘supercomputer’ site that’s still a scaffolding yard raise questions for Starmer’s push to ‘mainline AI into veins of economy’
TL;DR
- A Guardian investigation questions the validity of multibillion-pound AI investments in the UK economy.
- Firms linked to Nvidia, such as NScale and CoreWeave, have announced major projects, including new datacenters and a supercomputer.
- Evidence suggests that promised datacenters may not be new, jobs are unaccounted for, and a supercomputer site is still under construction.
- The UK government stated its AI sector has attracted over £100bn in private investment, but acknowledged limitations in auditing commitments.
- Concerns are raised that these investments may disproportionately benefit US-headquartered companies without sufficient oversight.
- CoreWeave's £1bn investment was described as deploying chips in existing datacenters rather than building new ones.
- NScale's announced $2.5bn investment for a supercomputer site in Loughton appears to be an 'intention to commit capital' rather than a formal contract, with the site still a scaffolding yard.
- Future projects like 'Stargate UK' and an AI growth zone in Lanarkshire also face scrutiny regarding the substance of the announced investments and job creation.
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