The Lanarkshire AI Growth Zone in Scotland, has secured a £300 million (US$ 400 million) financing package to support data center expansion. The funding will enable DataVita, a colocation services provider, to expand its existing DV1 data center and construct a second facility at the site.
According to a press release, the financing includes a £202 million (US$ 273 million) guarantee from the National Wealth Fund which is being provided by ING, ABN AMRO, Santander, the Scottish National Investment Bank and Siemens Financial Services.
Dell Technologies will also move its Scottish team to Mercury House at Lanarkshire’s AI Innovation Park. The developments are part of the UK government’s AI Growth Zone program and the wider Lanarkshire development is expected to attract more than £8 billion (US$ 10.8 billion) in private investment.
“AI is already helping scientists discover new medicines, supporting better public services and helping businesses get more done,” said Kanishka Narayan, AI Minister, UK. “The countries that build the infrastructure behind this technology will be the ones that attract investment, create jobs and help shape the industries of the future. They will help ensure Scotland is at the forefront of one of the biggest economic opportunities of our time, bringing investment, reindustrialization and opportunities to communities like Lanarkshire.”
Jonathan Reynolds, UK Business Secretary, said, “This investment, and Dell’s decision to back brilliant talent in Lanarkshire, is proof that our AI Growth Zones are already playing their part in reindustrializing Britain and delivering good growth in every postcode. By using the National Wealth Fund to unlock private finance, we’re transforming Scotland into an AI powerhouse.”
Douglas Alexander, Scottish Secretary, said, “Securing £300 million in backing for Lanarkshire shows the UK Government’s clear determination to drive prosperity across every part of Scotland. The compute power built here will power the next generation of scientific advances and greener energy solutions, while giving local people the skills and careers needed to run them. It ensures Scottish talent remains at the forefront of the innovations that will reshape our daily lives for the better.”
Stephen Flynn, Scottish Government Economy Secretary, said, “This investment marks a milestone in the creation of Scotland’s first AI Growth Zone in North Lanarkshire. I welcome the economic growth it is set to deliver across the region – including more than 3,400 new jobs and private investment totalling more than £8 billion. The Scottish Government’s AI Strategy sets out a clear plan to harness the economic and social benefits of AI to help ensure we translate our innovation and expertise into more businesses, jobs and investment.”
Oliver Holbourn, CEO, National Wealth Fund, said, “New compute capacity is key to unlocking the UK’s future, yet private finance can be difficult to secure for emerging infrastructure at this scale. The National Wealth Fund’s guarantee is helping address that gap, giving lenders the confidence to invest. By laying the foundation for the wider Lanarkshire AI Growth Zone, we are helping support innovation and local economic opportunity, while delivering critical compute capacity for the UK’s sovereign AI ambitions.”
Danny Quinn, Managing Director, DataVita, said, “There is plenty of talk about AI infrastructure. This project is being delivered: work is well advanced on site, every megawatt is contracted, and the first facility completes this year. DataVita delivers AI infrastructure end to end, from the energy that powers it through to the applications that run on it.” He adds, “This type of investment in Scotland’s data center infrastructure would have been unthinkable just two or three years ago. That is the impact AI is having. Scotland has all the right ingredients to take advantage of the AI revolution and make it a core part of its economy.”
Steve Young, Senior Vice President and UK Managing Director, Dell Technologies, said, “AI is creating new opportunities for organizations across every sector. Realizing its potential depends on having the right infrastructure, skills and partnerships in place. Being part of that ecosystem will help us strengthen relationships across Scotland while continuing to support customers and partners across the UK on their AI journeys.”
The Lanarkshire site is expected to be among the first UK AI Growth Zones to have AI chips installed and its energy requirements will be met predominantly through renewable power, drawing on Scotland’s low-carbon electricity mix.