The UK must rapidly overhaul its AI infrastructure or risk losing ground in the global technology race, according to a new report by the Tony Blair Institute for Global Change (TBI). The report describes the country’s current infrastructure as “dire,” warning that limited compute capacity could lead to increased reliance on foreign powers and compromise national and economic security.
Despite a £1 billion government commitment to boost computing power and an AI action plan, tech leaders argue these steps are insufficient. The UK holds just 3% of global computing power, compared with the US at 75%. Meanwhile, nations including China, Saudi Arabia and the UAE are investing heavily in AI supercomputing.
Prime Minister Keir Starmer has declared his aim for the UK to be a “maker, not a taker” of AI infrastructure. Plans include AI Growth Zones—regions that would allow fast-tracked data centre development by waiving some planning restrictions and offering preferential energy terms. However, these proposals have sparked internal tensions, particularly with the Department for Energy, which has raised concerns about environmental strain and energy grid resilience.
Jamie Hutton, CTO of British analytics firm Quantexa, said infrastructure investment is not optional but “key to unlocking long-term prosperity, national resilience and global competitiveness.” The TBI report calls for sweeping reforms, including a restructured planning regime and significant energy expansion, such as new nuclear power projects, to meet AI's massive compute demands.
It also proposes a Whitehall-based AI Infrastructure Delivery Group, modelled on the COVID-era Vaccine Taskforce, to drive coordination across departments and with external partners like Ofgem and the National Grid.
While the UK may struggle to match nations with vast training resources, the report urges a focus on deploying AI across public services such as health, education, defence and research. This could enable broad productivity gains and position the UK as a global leader in AI adoption rather than frontier model development. Regulatory progress is also under way. Following the November AI Safety Summit and the appointment of Peter Kyle as science and technology minister, the Labour government is pursuing binding rules for powerful models, deepfake restrictions and mandatory AI testing transparency. These measures aim to balance rapid innovation with public trust.
The UK’s AI sector remains vibrant, but the report makes clear that foundational investment in compute capacity, energy resilience and government coordination will be decisive. Without urgent action, the country’s ambition to lead in responsible AI development may be overtaken by better-prepared rivals.
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