By Aisha Down
Publication Date: 2026-04-09 12:39:00
OpenAI has shelved plans for a breakthrough investment in the UK, citing high energy costs and regulation – a blow to the government, which has put AI at the heart of its growth strategy.
Stargate UK was part of the UK-US AI deal announced last September, in which US companies appeared to invest £31 billion in the UK tech sector, part of a wider series of investments aimed at embedding AI in the UK economy.
This came as the Labor government wanted to make AI and data centers the engine of its growth plans, alongside closer ties with Europe and regional growth.
“This is a wake-up call for the government to get the UK’s energy costs and infrastructure under control,” said Victoria Collins MP, Liberal Democrat spokesperson for science, innovation and technology. “We cannot rely on U.S. technology companies to build our own sovereign capabilities – be it in energy costs, utilities, or even data and phone signals.”
Labor MP Clive Lewis said: “If a…
