The UK government’s recently announced AI Opportunities Action Plan marks an ambitious step forward in harnessing artificial intelligence to drive economic growth and societal progress. As the CEO of Civo, a UK-founded company committed to reimagining the cloud with sustainability, innovation, and sovereignty at its core, I welcome this bold vision. However, it’s essential to critically evaluate its promises and identify areas for improvement to ensure the plan truly delivers on its transformative potential.

A promising start: AI growth zones and infrastructure investments

The establishment of AI Growth Zones, designed to expedite planning and provide infrastructure for AI innovation, is a forward-thinking initiative. By focusing on regions like Culham, Oxfordshire—a hub of scientific brilliance—the government is setting the stage for localised innovation and job creation. Furthermore, the commitment to boost public compute capacity twentyfold with a new supercomputer demonstrates an understanding of the computational demands AI places on infrastructure. I welcome these moves, particularly the focus on regional innovation. Our own journey as an international company founded in the UK proves that world-class technology doesn’t have to originate in Silicon Valley. By empowering local ecosystems, we can cultivate homegrown talent and innovation that rivals global competitors.

Sovereignty: A missed opportunity

While the Action Plan touches on data sovereignty, it doesn’t go far enough. In a globalised digital economy, sovereignty isn’t just about where data resides—it’s about who controls it. The reliance on foreign-owned hyperscalers by many UK enterprises leaves us vulnerable to regulatory conflicts, data security risks, and a dependency that undermines national resilience.

It is also telling that, despite the UK being positioned as a global leader in AI, all the corporate endorsements at the end of the Action Plan’s press notice come from US-based companies. This omission of British companies sends the wrong message about our capability to lead in this space. Civo’s Sovereign UK Cloud demonstrates how infrastructure can be aligned with UK laws and values. By ensuring data is stored, processed, and governed entirely within the UK, we help organisations in regulated sectors like finance, healthcare, and public services meet compliance requirements while retaining control over their data.

The government must double down on supporting UK-founded technology companies to build a truly sovereign AI ecosystem. This means prioritising local providers for public sector projects, offering grants to UK-based startups, and addressing vendor dependency by encouraging diversity in the AI infrastructure landscape.

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Questionable financial projections

The financial projections in the Action Plan warrant closer scrutiny. For instance, the claim that Vantage Data Centres will invest £12 billion in data centre buildings across the UK and create 11,500 jobs is ambitious, to say the least. While such investments may indeed provide a short-term boost, the majority of these jobs are likely to be temporary construction roles. Long-term, sustainable employment figures are unlikely to align with the plan’s lofty projections.

As a company actively investing in sustainable and efficient data centre practices, Civo understands the importance of making investments that deliver enduring value. The government must ensure that these headline-grabbing figures are grounded in realistic assessments and provide tangible, lasting benefits to local communities.

Innovation and accessibility: Bridging the gap

The plan’s emphasis on democratising AI is commendable, but more concrete measures are needed to ensure equitable access to AI tools. High costs and supply chain bottlenecks remain significant barriers for startups and SMEs, limiting their ability to leverage AI for innovation.

At Civo, we have focused on making AI and GPU technology more accessible by addressing some of these barriers. Through transparent pricing structures and eliminating hidden costs such as egress charges, we have shown how affordable, high-performance computing can empower businesses of all sizes. By simplifying access to advanced tools like Kubernetes and providing complete AI stacks, we aim to enable a broader range of organisations to participate in the AI revolution without being constrained by prohibitive infrastructure costs.

The government should take cues from these approaches, implementing policies that encourage cost transparency and reduce barriers to entry for smaller enterprises. Without these measures, the “multiplier effect” of AI democratisation will remain a theoretical promise.

The AI sector’s environmental footprint is a critical issue that must be addressed to ensure long-term success. Data centres already account for 1.5% of global electricity use and 3% of carbon emissions, and as AI adoption accelerates, this strain is only set to grow. The government’s recognition of AI as a significant energy consumer and its establishment of a task force to address these challenges are important first steps. However, this task force must go beyond discussion to drive real action. Without clear and decisive measures, AI risks becoming a major strain on the UK’s energy infrastructure, potentially undermining the plan’s goals of turbocharging growth and improving living standards. Ensuring AI’s environmental impact is managed effectively should be central to the UK’s strategy.

Civo has already taken proactive steps to address these challenges. By partnering with Deep Green, we’ve utilised heat recapture technology in our edge data centres to reduce carbon footprints while supporting community needs. Such initiatives highlight the potential for AI infrastructure to be both sustainable and beneficial to society. The government should look to incentivise similar practices, fund research into energy-efficient AI models, and encourage partnerships between AI companies and green innovators to ensure that AI growth aligns with environmental responsibilities.

Building for the future: recommendations

To maximise the potential of the AI Opportunities Action Plan, the government must take decisive action in the following areas:

  • Champion Sovereignty: Make sovereign infrastructure a non-negotiable requirement for public sector AI projects. Support UK-founded companies such as Civo, Clairo AI and Adargo to build resilient and compliant ecosystems.
  • Foster Innovation Locally: Prioritise funding for UK-based startups and SMEs to reduce reliance on foreign providers. Establish innovation grants and tax breaks specifically for AI and cloud technology companies operating in the UK.
  • Promote Sustainability: Mandate sustainability benchmarks for all government-supported AI projects. Incentivise the adoption of renewable energy and waste heat reuse in data centres.
  • Enhance Accessibility: Introduce subsidies or credits for SMEs adopting AI technologies. Require transparency in pricing for GPU and cloud services to eliminate hidden costs.
  • Develop Talent: Invest in AI education and training to close the skills gap, ensuring the next generation of UK talent can thrive in this competitive sector.

A call to action

The AI Opportunities Action Plan is a bold step, but its success hinges on the details of its implementation. As a global technology company with deep UK roots, Civo stands ready to support this vision. By fostering a truly sovereign, sustainable, and inclusive AI ecosystem, the UK can lead the world in responsible AI innovation.