Capital Investment: Artificial Intelligence

(asked on 27th April 2026) - View Source

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the Times article OpenAI pauses Stargate UK investment over high energy costs, published on 9 April; and what steps they are taking to ensure that the UK remains an attractive destination for AI-related capital investment.


Answered by
 Portrait
Baroness Lloyd of Effra
Baroness in Waiting (HM Household) (Whip)
This question was answered on 29th April 2026

The UK continues to be an attractive destination for AI investment as reflected in OpenAI’s ongoing and expanding presence here through its recent announcement for a large permanent office in London, doubling the current OpenAI headcount here.

The UK Government announced measures to provide price support and accelerate planning and grid connections for AI Growth Zones in November, improving the environment for AI infrastructure in the UK.

OpenAI will continue operating in the UK and have confirmed they will bring their second HQ forward in London - a clear recognition of the UK as a global hub for AI innovation. The Government recognises OpenAI’s decision to pause Stargate UK as part of a wider recalibration of its global Stargate programme, rather than a reflection of conditions specific to the UK.

The Government remains committed to supporting large-scale AI infrastructure through the AI Growth Zone programme, including action to reduce energy costs and address regulatory barriers.

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