Wednesday Update: Exploring Britain’s AI Initiative – From Absent Billions to Phantom Data Centers

Good morning! In recent years, artificial intelligence (AI) has been touted as a revolutionary force that promises to reshape economies across the globe. Governments have committed enormous sums of money to facilitate this change, showcasing plans for new datacenters and supercomputers while promising a surge in job creation as AI technology is integrated into various sectors. However, a critical examination of the numbers behind these pledges raises essential questions.

This inquiry has been central to a series of recent investigations by the Guardian. Their findings have been striking, particularly the revelation that the site supposedly hosting a state-of-the-art supercomputer—expected to be operational by year’s end to bolster the British economy—was merely a scaffolding yard.

In today’s newsletter, I had a conversation with Aisha Down, a Guardian reporter focused on artificial intelligence. We discussed the perplexing nature of recent announcements and deals in the UK, particularly the haste with which governments appear to embrace AI promises, often before they can be substantiated. But first, let’s look at the headlines.

Five Big Stories

1. Middle East Crisis | Residents of Tehran have reported what they describe as a night of unprecedented aerial bombardment, coinciding with comments from US Defense Secretary Pete Hegseth, who echoed Donald Trump’s belief that the conflict could be nearing its end while warning that further strikes are likely.

2. Environment | A recent study reveals that climate change is considerably diminishing the time people can safely engage in their daily activities, indicating that a third of the global population now lives in regions severely affected by extreme heat.

3. Labour | Plans to reduce the number of jury trials in England and Wales have raised significant concern among lawyers, who have expressed that these proposals are “unpopular, untested, and poorly evidenced.”

4. UK Economy | The UK’s inflation rate may end the year at a higher-than-expected 3%, largely influenced by the geopolitical tensions arising from the US-Israel war in Iran, according to predictions from the government’s economic watchdog.

5. Travel | London’s tube drivers are set to strike over a demand for a four-day workweek, with actions planned across 12 days in the spring.

In Depth: ‘A $100bn Deal between Two of the Biggest Companies in the World Just Sort of Disappeared’

“What seems to have transpired is a misrepresentation of reality—manipulated by a government eager for economic growth and tech companies focused on maximizing AI hype,” Aisha elaborates.

She explains that the investigative journey began with a straightforward notion: the need to scrutinize the details behind numerous sensational AI investment announcements.

“Throughout late last year, my colleague Dan Milmo and I at the tech desk initiated an audit to map out all the significant AI agreements,” Aisha recalls. “2025 was reputedly a year of colossal AI deals both in the UK and abroad. Nvidia’s CEO Jensen Huang was globalizing discussions about major investments in countries, including Saudi Arabia and South Korea.”

However, the reality turned out to be far more complex than the polished press releases suggested. “As we mapped these deals, we noticed an unsettling pattern,” she adds.

The $100bn Deal that Vanished

One instance particularly caught Aisha’s attention.

Earlier this year, there was massive excitement over a proposed $100bn investment by Nvidia in OpenAI—intended for Nvidia to supply chips to OpenAI. Yet, almost overnight, the deal seemed to disappear.

“A $100bn deal between two of the biggest entities in the tech realm just kind of vanished,” Aisha comments. “Surprisingly, the financial markets barely reacted.”

Such a muted response is puzzling, especially as smaller developments have previously caused significant market fluctuations; for example, a recent contentious viral report about AI unleashed significant stock losses for companies like Uber, American Express, and Mastercard. Yet when one of the foundational deals for the AI sector appeared to dissolve, the markets remained calm.

“I recall wandering through the newsroom, likely annoying my editors,” she laughs. “I kept asking, ‘Where’s the money?’”

This moment spurred Aisha and her team to delve deeper into the issues behind these striking announcements.

The Supercomputer that Wasn’t

As the investigation continued, Aisha noticed a repeated emphasis on two companies central to the UK government’s AI plans: CoreWeave and Nscale, both receiving backing from Nvidia and noted for their pledges to elevate Britain’s AI infrastructure. One particular project regarding a “sovereign AI” supercomputer site on the outskirts of London drew her attention.

Determined to find out more, Aisha began reaching out to discover if the site had any actual power connections and whether construction was underway. When she visited the location, the findings shocked her.

“I didn’t expect what we encountered,” she states. Instead of a bustling construction site gearing up for one of the mightiest computing centers in the nation, she discovered a functioning scaffolding yard.

“There were trucks entering and leaving, loaded with metal poles,” she said, questioning if they were at the right site: “Is this the place where the supercomputer is meant to be?”

The disparity between the futuristic renderings that accompanied the announcement and the actual state of things on-site was stark.

According to the government and Nscale, this ambitious project is intended to be operational by the end of this year. However, while Nscale claimed over a year ago that they purchased the site, land records show they may not yet be registered as the owners.

A spokesperson from Nscale affirmed, “As a UK-based company, we are steadfast in our commitment to our announced UK investment, including the Loughton project, which supports our efforts with Microsoft.”

Paper Promises

One concern stemming from Aisha’s examination is that the grand projections about AI investments might not lead to the transformative economic shifts that governments are banking on. Data signals considerable variability in the anticipated impacts of AI technology. For instance, a recent report from the National Foundation for Educational Research predicted that by 2035, around 3 million lower-skilled jobs in the UK could be at risk due to automation and AI, while new job roles emerge simultaneously elsewhere.

There appears to be a disconnect between the proclaimed investments and their actual economic implications. Companies like Nscale and CoreWeave suggest that much of their funding is intended to acquire Nvidia chips, which are to be installed in UK datacenters for leasing. In practice, this suggests that Nscale’s reported $2.5bn “investment” may translate into relocating existing technology rather than introducing fresh capital into the economy.

Moreover, the infrastructure required to fuel this AI boom may generate far fewer jobs than initially promised.

“The reality is that data centers don’t create hundreds of long-term employment opportunities,” Aisha underlines. “Typically, they offer a handful of security and maintenance roles—at best, tens, not hundreds.”

Both companies involved maintain that their announcements accurately reflect their ambitions and reject any claims of misleading investments. They assert that placing computing equipment within existing facilities and extending construction timelines are standard practices in the rapidly evolving AI sector. The UK government has also defended its AI strategy against suggestions of exaggeration, stating that datacenters are vital infrastructure for the nation’s economic progress.

Nonetheless, the apparent discrepancies are concerning. In January, the government announced CoreWeave and DataVita’s intent to establish an “AI growth zone” in Lanarkshire, which would be powered by up to 1GW of private renewable energy—roughly equivalent to a nuclear reactor’s output.

There seems to be uncertainty about whether such extensive energy infrastructure plans exist. CoreWeave has expressed confidence concerning the power availability for their investment, but DataVita, tasked with power delivery, has not provided a comment.

‘How it Started’ vs. ‘How It’s Going’

When I ask Aisha to summarize the findings, she uses a well-known social media meme format:

“How it started: billions of pounds in investments, the emergence of new jobs, datacenters popping up all over the UK—AI is integrated into the very fabric of the economy, transforming everything, enhancing productivity, solving the Labour Party’s growth issue.”

“How it’s actually going: the money is often just theoretical. In numerous instances, it appears to involve relocating hardware rather than generating new economic activity, along with some minimal associated operational costs.”

“This doesn’t constitute investment as most people would interpret the term.”

Furthermore, Aisha emphasizes that the UK isn’t alone in this regard. Various governments worldwide are in a competition to attract AI infrastructure and investments, frequently attaching lofty promises to these endeavors.

Ultimately, what was once touted as massive capital flowing into the AI sector in the UK is evolving into a situation that looks more like the relocation of chips in leased facilities, with governments eagerly echoing the press releases from major AI corporations while failing to scrutinize the validity of these claims.

What Else We’ve Been Reading

• Michael Hann interviews Jowe Head about the “serious fun” of being in the very obscure but hugely influential DIY band Swell Maps. Martin

• Marina Hyde critiques the tone-deaf antics of Kai Trump, granddaughter of the US president, who went viral this week for her video touring a luxury supermarket— an analysis that is quintessentially classic Marina Hyde. Charlie Lindlar, newsletters team

• Take a nostalgic journey through some of the highs and lows of Apple’s product lineup with this Chris Stokel-Walker list. Ah, the iPod, how I miss you! Martin

• In our women’s football newsletter, Moving the Goalposts (sign up here!), Osasu Obayiuwana reports on the outrage over the postponement of the Women’s African Cup of Nations, with one player stating: “It’s embarrassing at this point.” Charlie

• The Pope has voiced opposition against priests using artificial intelligence for sermon writing, yet in an opinion piece, Margaret Sullivan argues that journalists may need to adapt to coexist with it. Martin

Sport

Football | Goalkeeper Antonin Kinsky was substituted early during Tottenham’s humiliating 5-2 loss to Atlético Madrid. Meanwhile, Barcelona’s Lamine Yamal equalized via a penalty after Newcastle’s Harvey Barnes had scored, making it 1-1 in their fiercely contested first leg. In the first leg of their Champions League tie, Galatasaray secured a 1-0 win over Liverpool, thanks to an early goal by Mario Lemina.

Rugby Union | Steve Borthwick has recalled Ollie Chessum to the struggling side for their final Six Nations match against France but has otherwise kept to the same underperforming players who faced a defeat against Italy.

Football | Joey Barton is set to appear in court following charges of attacking a man outside a golf club in Liverpool. The former footballer was arrested after an incident on Sunday evening.

The Front Pages

The Guardian‘s front page today features the headline: “‘The Last Stop before Hell’: Tehran Residents Report Intensifying Attacks.” The Times leads with, “US Bombers Take Off from Britain for Assault on Iran,” and the i states, “American Bombers Depart from UK RAF Base as Trump Vows Major Iran Offensive.” The Daily Mail carries the story “Ban Pro-Iran Hate March,” while the Metro highlights “Face of UK Meets Hate with Dates.” The Express states, “Time to Stop ‘Cruel’ State Pension Tax Grab,” and the National notes, “PM’s Leaked ‘Assault on Devolution.’” Lastly, the Star covers, “Joey Barton Held Over Attack at Golf Club,” while the Sun points out, “Barton ‘Victim Blinded.’”

Today in Focus

Should We Be Boycotting ChatGPT?

Historian Rutger Bregman argues that consumers should boycott OpenAI’s ChatGPT due to the company’s partnership with the Pentagon, asserting that many are unaware of how their friendly chatbot is interwoven into the “authoritarian infrastructure” of the Trump administration.

Cartoon of the Day | Ella Baron

The Upside

A bit of good news to remind you that the world’s not all bad

Candombe, Uruguay’s Afro-descendant music, once marginalized and even banned, is now witnessing a resurgence in popularity.

This music, characterized by the sound of three drums—piano, chico, and repique—traces its roots to over 200,000 enslaved Africans transported to Uruguay during the 250-year slavery era, mainly from central Africa. Over time, its acceptance has grown within Uruguayan society, with candombe groups emerging across the nation, eventually recognized by UNESCO in 2009 as an intangible cultural heritage of humanity.

Today, its rhythmic beats attract thousands to public squares and carnival events. Renowned Uruguayan singer Jorge Drexler describes the rhythm as a “trance, a spiritual tool,” stating, “In an increasingly polarized world, candombe can build bridges among people.”

Sign up here for a weekly roundup of The Upside, delivered every Sunday.

Bored at Work?

Finally, the Guardian’s puzzles are available to keep you entertained throughout the day. Until tomorrow!