17 September 2025
If you are covering Microsoft’s £22bn investment in the UK’s AI sector, along with the US-UK ‘Tech Prosperity Deal’, please find below a comment from Ben Barringer, global head of technology research at Quilter Cheviot:
“Just like with Google yesterday, the UK government has scored a big win in attracting Microsoft to spend a significant sum of capital on investment in AI in the UK. While the economic benefits Microsoft’s CEO Satya Nadella touts may take some time to materialise, this is undoubtedly a big win for the government, particularly when it is struggling on the domestic front as much as it is.
“Microsoft is committed to spend much more on capex overall than Google, around $120bn compared to the latter’s $85bn. But for the UK to score such a large investment from Microsoft is no mean feat and highlights the expertise the country has in AI, and how it needs to harness this in order to be the next tech leader after the US and China. It should not be afraid to nurture the sector as much as it can, given this now very much appears to be the future.
“All of this forms the ‘Tech Prosperity Deal’ between the US tech giants and the UK, to support AI tech and infrastructure here in the UK. With data centres and supercomputers now committed, the UK needs to keep the momentum going and ensure delivery of these projects regardless of the external noise and environment. This cannot be a false dawn when the technology is moving at rapid pace.
“For Microsoft, this all makes sense as a diversifying investment outside of the US. Trump wants American businesses winning globally, and given the UK’s natural home for secondary tech investments, and Microsoft’s already large presence in the UK, it is unsurprising to see it choose this investment at this point in time. The UK has strong internet penetration, along with the universities and expertise to nurture talent. Despite issues like the Digital Services Tax still to be resolved, the UK is clearly making itself open to business to the US tech giants.”
