AI could boost UK economy by 10% in five years, says Microsoft boss

"Microsoft says its new $30bn (22bn) investment in the UK's AI sector its largest outside of the US - should significantly boost Britain's economy in the next few years. Its package forms a major part of a $31billion agreement made between the UK government and various other US tech giants, including Nvidia and Google, to invest in British-based infrastructure to support AI technology, largely in the form of data centres. Microsoft will also now be involved in the creation of a powerful new supercomputer in Loughton, Essex."

"Speaking exclusively to the BBC Microsoft CEO Satya Nadella told the BBC of the tech's potential impact on economic growth. "It may happen faster, so our hope is not ten years but maybe five". "Whenever anyone gets excited about AI, I want to see it ultimately in the economic growth and the GDP growth." Prime Minister Sir Keir Starmer said the US-UK deal marked "a generational step change in our relationship with the US". He added that the agreement was "creating highly skilled jobs, putting more money in people's pockets and ensuring this partnership benefits every corner of the United Kingdom.""

"Nadella conceded that "all tech things are about booms and busts and bubbles" and warned that AI should not be over-hyped or under-hyped but also said the newborn tech would still bring about new products, new systems and new infrastructure. He acknowledged that its energy consumption remains "very high" but argued that its potential benefits, especially in the fields of healthcare,"

Microsoft will invest $30bn (£22bn) in the UK's AI sector, its largest investment outside the US. The funding is part of a $31bn US-UK agreement with firms such as Nvidia and Google to build British-based AI infrastructure, primarily data centres. Microsoft will help create a powerful supercomputer in Loughton, Essex. CEO Satya Nadella said AI could accelerate economic growth, possibly within five years, and compared its impact to the personal computer revolution. Prime Minister Keir Starmer called the deal a generational step change, promising skilled jobs and wider regional benefits. Nadella warned of boom-bust cycles, noted high energy consumption, and emphasized healthcare potential.

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