OpenAI and UK Government Announce Partnership for Data Centres in Britain

LONDON, Jul 22, 2025 — OpenAI and the UK government have signed a new strategic partnership which aims to expand AI security research collaborations, explore investing in UK AI infrastructure like data centres, and find new ways for taxpayer-funded services like security and education to make best use of the latest tech.

As per a media statement issued by the British government, the partnership comes as OpenAI deepens its commitment to the UK, with plans to increase the size of its London office to follow.

“The move will build out what started as the company’s first international location just two years ago, where research and engineering teams contribute to the development of frontier AI models, and support is provided to UK business, developers and start-ups,” it said.

One of the important contours of the partnership is that it will explore where it can deploy AI in areas such as justice, defence and security, and education technology.

The focus of making an impact of the partnership is in line with UK standards and guidelines, to demonstrate the opportunity to make taxpayer-funded services more efficient and effective, said the UK Government’s official statement.

Leveraging Government’s Strength

The ‘Memorandum of Understanding’ signed on Tuesday by Technology Secretary Peter Kyle and OpenAI CEO Sam Altman envisages to build on the UK’s strengths in science, innovation and talent to “maintain a world-leading UK AI ecosystem rooted in democratic values.”

Other aspects of the partnership will see OpenAI also explore potential routes to deliver the infrastructure priorities laid out in the AI Opportunities Action Plan, recognising the importance of UK sovereign capability in achieving the economic benefits of AI.

“The move could mean that world-changing AI tech is developed in the UK, driving discoveries that will deliver growth,” said the official statement.

AI Growth Zones

OpenAI may invest in and support AI Growth Zones, first announced in the AI Opportunities Action Plan which has since been backed by £2 billion in the Spending Review, it said.

Having attracted over 200 bids from across the country, AI Growth Zones are set to become hot-spots for AI infrastructure, attracting billions of pounds in investment each.

In light of its partnership with OpenAI, UK government has confirmed that Scotland and Wales will both host AI Growth Zones in its Compute Strategy.

The initiative follows the UK investing up to £500 million in sovereign AI that will be spent backing national AI champions and partnering with world-leading companies like OpenAI.

“This partnership is an important element of our mission to ensure the UK continues to participate actively in the development of frontier AI, and that UK citizens continue to benefit from the economic growth provided by cutting-edge models,” it further said.

Government Partnership with AI Giant

Commenting on the partnership, Technology Secretary Peter Kyle said, “AI will be fundamental in driving the change we need to see across the country, whether that’s in fixing the NHS, breaking down barriers to opportunity or driving economic growth.”

“That’s why we need to make sure Britain is front and centre when it comes to developing and deploying AI, so we can make sure it works for us.”

Secretary Kyle said this can’t be achieved without companies like OpenAI, who are driving this revolution forward internationally.

“This partnership will see more of their work taking place in the UK, creating highly paid tech jobs, driving investment in infrastructure, and crucially giving our country agency over how this world-changing technology moves forward.”

OpenAI CEO, Sam Altman said AI is a core technology for nation-building that will transform economies and deliver growth. “Britain has a strong legacy of scientific leadership, and its government was one of the first to recognise the potential of AI through its AI Opportunities Action Plan.”

“Now, it’s time to deliver on the plan’s goals by turning ambition to action and delivering prosperity for all,” Altman further said.

Notably, the AI lab may also work with government to identify how advanced AI models could help to improve the public services that millions of people use every day, and drive economic growth across the country, said the official statement.

OpenAI’s large language model, ChatGPT, already underpins multiple tools in ‘Humphrey’, Whitehall’s AI assistant that aims to speed up the civil service by taking away admin burdens.

For instance, GPT 4o is used in ‘Consult’, the bespoke tool that speeds up the policy-making process by automatically sorting public responses to consultations, doing a task that takes officials weeks in minutes, while leaving important decisions to experts.

In addition to supporting infrastructure plans laid out in the AI Opportunities Action Plan, OpenAI may also explore developing state-of-the-art, AI-enabled R&D infrastructure in the UK, focused on shared areas of strategic interest with the UK government, the statement added.

The focus of making an impact of the partnership is in line with UK standards and guidelines to make taxpayer funded services more efficient and effective.

Inputs from Saqib Malik

Editing by David Ryder