Microsoft's UK chief has insisted the technology giant remains committed to its $30bn (£22bn) UK investment plan, despite withdrawing from a project linked to Britain's largest AI data centre. The announcement came as the tech behemoth published fresh research revealing a sharp rise in the uptake of AI technology amongst British businesses and workers over the past twelve months.
Investment plan unchanged
Microsoft announced last year that it would pump £22 billion into expanding Britain's AI infrastructure between 2025 and 2028. Part of that investment package included backing for UK start-up Nscale's proposed data centre in Loughton, Essex. However, Microsoft confirmed earlier this week that it has pulled out of a deal to lease computing capacity from the site, citing concerns that it would not be connected to the power grid until after 2030.
Darren Hardman, chief executive of Microsoft UK and Ireland, told the Press Association that the group's UK investment plan "will not change" in light of the decision. "When you look at the $30bn investment between 2025 and 2028, it is a small component of that," the executive said. "We are still fully committed to that investment package."
Commitment to Nscale and Manchester
Mr Hardman emphasised that the firm also remains "committed" to its relationship with Nscale, with the two parties intending to collaborate on a number of sites outside of the UK. The chief executive also revealed to PA that he has had encouraging talks with Prime Minister Andy Burnham regarding potential opportunities linked to AI since his appointment to the role this summer.
Mr Hardman cited Manchester as a strong example of a region within the UK where AI uptake is expanding rapidly, helping to bolster economic growth prospects.
Rising AI adoption
The comments came as figures from the technology giant revealed that AI adoption has continued to climb across the UK over the past year. Approximately 43.7% of Britons made use of the technology in the second quarter of 2026, up from 36.6% the previous year. This placed the UK eighth globally and second within the G7 group of nations for the rate of generative AI uptake.
Nevertheless, Britain still trails well behind the leading nations, the United Arab Emirates and Singapore, which recorded AI diffusion rates of 73.3% and 64.3% respectively.
