{
  "id": 18244126,
  "title": "Britain has AI talent, but what about the compute?",
  "url": "https://urgent.news/2026/11/05/britain-has-ai-talent-but-what-about-the-compute",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-05T04:06:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/britain-has-ai-talent-but-what-about-the-compute/"
  },
  "original_language": "en",
  "account": "Britain possesses the talent to lead in AI, but the availability of sufficient computing power remains a concern, asserts Grant Shapps and James Marks. As one of them operates an AI business in London, he is frequently approached by investors seeking information about potential relocation to the United States. The other has previously served in government, including as defense secretary, contemplating the implications of a country depending on infrastructure it cannot control. The duo reached this conclusion independently. The AI ambitions of Britain are stagnant due to the inability of its firms to secure the compute they require at fair prices. Compute refers to the processing power utilized by AI systems, which is akin to electricity in terms of its fundamental role in the economy and strategic importance comparable to energy security. The UK government's recent Budget signaled acknowledgment of this issue. Several initiatives, including the British Data Centre Covenant, provide priority grid access to developers investing in jobs, local communities, and water, alongside £500 million earmarked for AI safety and security, and £140 million to support British AI companies. Although the direction appears promising, the investment environment is less encouraging. Microsoft recently abandoned plans for an AI data center in Essex due to power supply delays. Additionally, over 70 GW of data center projects are awaiting grid connection, while the system operator anticipates completing approximately 5 GW by 2030. Businesses are now paying nearly double the electricity rates from 2019. These factors influence investor behavior and mobility. This situation poses both a resilience and economic challenge. A nation whose hospitals, banks, and defense systems progressively rely on AI cannot afford to price out its most innovative companies from the necessary compute resources or depend on a limited number of overseas providers for essential capacity. Presently, five entities possess an estimated 71% of the world's AI compute, with four of them planning to invest around $725 billion in infrastructure this year. Whoever controls compute significantly influences where and under what conditions AI can be built. Ensuring that sensitive data remains within British borders is commendable; however, it holds little value if British firms cannot access that capacity at reasonable rates. In most cases, they are unable to. The procurement of compute occurs within an opaque market, where listed prices seldom align with actual expenditure, quotations expire before financial approval, and the largest buyers secure the most advantageous deals. For a British startup, negotiating against global giants presents a significant challenge. The core of the issue lies here. If only the largest players can secure fair pricing, British AI firms will either comply with their terms or relocate. Every founder who opts to move to Silicon Valley carries the jobs, taxes, and knowledge with them. To seize the present opportunity, Britain must capitalize on this technology to generate the required economic growth and sovereignty in an increasingly unpredictable world. However, this growth comes with repercussions. AI is already exerting profound impacts on ecosystems and labor markets worldwide, and the entities driving these changes must shoulder the responsibility for these consequences before they become irreversible. Government announcements alone cannot resolve the situation, and industry does not need to await directives. The British Data Centre Covenant establishes a baseline, requiring firms to build infrastructure while contributing to the communities hosting them. The industry should collectively adhere to this standard. The Canopy initiative pledges to contribute a portion of its profits to a new founders' initiative and plans to participate actively in Davos discussions. The initial focus encompasses four areas: the communities hosting AI infrastructure, ensuring they benefit from both the advantages and the burdens; workers affected by AI-driven workforce changes; young individuals lacking access to AI and computing education; and independent research on the environmental impact of AI. Responsible growth should not hinder investment; instead, it should fortify infrastructure and foster trust among hosting communities. EY discovered that firms with stronger responsible AI practices exhibited an 80% higher likelihood of reporting gains in efficiency and innovation. Britain boasts the necessary universities, talent pool, and capital markets to assume leadership. What remains is a compute market that functions equitably for all participants, not just the dominant players, and an industry willing to assume responsibility for the future it is creating. The vision is for this future to be realized within the boundaries of Britain. Let's facilitate conditions for firms to remain and contribute to this growth. Sir Grant Shapps is a former secretary of state for defense and energy, while James Marks is the founder and CEO of Canopy.",
  "summary": "Britain can lead on AI, but only if its firms can get the power to build it, write Grant Shapps and James Marks.",
  "key_points": [
    "Britain has AI talent but faces compute shortage",
    "UK government acknowledges issue with compute pricing",
    "Initiatives aim to improve compute access and responsible AI practices"
  ],
  "editors_take": "The inability to secure affordable computing power threatens to drive British innovation to Silicon Valley, turning a domestic talent advantage into a loss of economic sovereignty and tax revenue.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}