Artificial Intelligence
Data Centres
Industry reacts to AI Opportunities Action Plan
Following yesterday's news about the Government unveiling a new AI Opportunities Action Plan, the industry has naturally been swift to react. Here's a round-up of observations from across the sector:
• Mark Yeeles, Vice President, Secure Power division, Schneider Electric UK & Ireland, says, “The UK has long held a rich history of technology leadership and innovation, and the recommendations within the Government's new AI Opportunities Action Plan present an ambitious but essential strategy to accelerate sustainable economic growth. In many respects, it is a crucial first step towards a more digitally driven future, enabled by AI.
“I, for one, am delighted to see further recognition of data centres as Critical National Infrastructure, and of their pivotal role in providing the secure, sustainable, and resilient infrastructure foundations that are essential to the countries AI success.
“Indeed, the proposed development of AI Growth Zones (AIGZs) presents a logical and effective way to fast-track new AI infrastructure, and to co-develop it with distributed energy resources - addressing the many power challenges that have historically hindered national developments.
“What’s critical is that security, sustainability and efficiency remain at the forefront of these developments, and that we continue to create strategies to decouple AI and data centre growth from power consumption, while reducing the technologies demand on the grid.
“Additionally, to meet and exceed our ambitions around AI leadership, it’s essential we tackle the skills gaps across several key areas connected to AI, including data centres and digital infrastructure, renewable power, sustainability, and engineering.
“We at Schneider Electric are therefore not only glad to see the Government taking proactive steps to address the skills shortage at an industry-level by setting targets to train tens of thousands of AI professionals by 2030, but to see its plans to expand education pathways into AI and to teach higher-education students’ a host of industry-relevant skills.
“Further, addressing the diversity issue at root and branch is vital to the future of the UK’s technology industry, and it’s excellent to see the acknowledgment of this within the plan.”
• Dame Dawn Childs, CEO of Pure DC, comments, “Pure DC welcomes the UK Government's AI Opportunities Action Plan, which underscores the nation's commitment to advancing artificial intelligence. The establishment of AI Growth Zones, such as the one in Culham, Oxfordshire, is a significant step toward accelerating the development of essential infrastructure.
“As a leading data centre provider, Pure DC recognises the importance of translating ambitious plans into tangible outcomes. The successful application and delivery of infrastructure depend on close collaboration between government, industry, and local communities. By aligning these efforts, we can create data centres that not only meet the evolving growth in capacity sought by technology firms, but also respect and actively benefit the communities they serve.
“We are particularly encouraged by the plan's focus on creating jobs and fostering innovation in de-industrialised areas. This aligns with our commitment to engaging with local stakeholders to drive economic development and ensure our projects deliver long-term value for communities.
“By working together, we can ensure that the UK remains at the forefront of AI and technology, creating a thriving environment for innovation and investment.”
• Robin Ferris, AI Lead at digital infrastructure provider, Pulsant, observes, "It takes a long time to plan and build the digital infrastructure that supports AI technology, so the announcement of dedicated AI Growth Zones is fantastic news. But for this to really work, the plan needs to think about the different needs of AI. Training large language models (LLMs) can be more flexible with where it happens, but AI inference – the bit where we actually see AI’s real value – works better when it’s closer to major economic hubs.
"Organisations have been working hard to create real-world AI applications, and we are at an inflection point where they are now coming into production, but only if the right infrastructure is available – and fast. The need is now, and while the UK has one of the most advanced digital infrastructures in the world, it has to keep pace with businesses' growing needs. That’s why including brownfield sites would be a smart move. Not only can it be more efficient, but it’s also a greener, more sustainable choice.
"Having a spread-out, diverse digital infrastructure across the UK is key to making AI accessible to everyone – not just businesses in specific regions. That way, we can create an environment where innovation thrives everywhere and ideas turn into real-world impact faster."
• Tom Whittaker, Director at UK law firm, Burges Salmon, says, “The AI sector will be looking forward to the Spring 2025 Spending Review and the further publications listed in the plan to see what the plan looks like in practice. The plan reflects the public sector's cautious optimism about AI.
“In fact, Government is doing more for the AI sector than what's set out in the AI Opportunities Action Plan. For example, the plan does not refer to the Government's push for public sector organisations to publish on a register where they are developing or using AI. That register shows that there is a wide range of potential uses of AI across the public sector. We can see from research and public registers of AI development and use that there is a great deal of enthusiasm across the public sector to use AI to improve public services.”
• Rupert Bedell, CEO at Fasthosts, comments, “Data centres are the engines that will drive the AI Opportunities Action Plan into reality, but their development comes with significant environmental consequences. Managing their energy demands will define whether this AI plan will be a sustainable path forward.
“The proposed AI Energy Council must lead in establishing robust standards for energy efficiency and renewable energy use in new data centres. Equally, upgrading existing facilities with advanced technologies and modular designs will be essential to reducing their environmental impact. Relying solely on carbon offsets will not be enough, as true sustainability requires meaningful changes to how data centres are built and maintained throughout their lifecycle.
“For AI to truly benefit our society, we must address its environmental footprint head-on. Data centres have a unique opportunity to set the benchmark for how innovation and environmental responsibility can coexist.”
Simon Rowley - 14 January 2025