THE UK Government has backed plans for a new AI data centre in Scotland with a £200 million loan guarantee.
In an announcement on Tuesday, the Labour Government said the National Wealth Fund had agreed to guarantee 80% of a £252.5 million loan to DataVita to expand its DV1 data centre in Chapelhall, Airdrie, and construct a second nearby. The funding will come from ING, ABN, and Santander.
A further £47.5m is being provided by the Scottish National Investment Bank and Siemens Financial Services, but the UK Government will not guarantee this funding.
The £300m plans will see the expansion of the “Lanarkshire AI growth zone”, which was first announced by the UK Government in January.
At the same time, Dell – the computer manufacturer – will move its Scottish team out of Glasgow, basing them instead within the “growth zone”.
The UK Government claimed the plans for Lanarkshire are “expected to support more than 3400 jobs, alongside skills and training opportunities to help local people access careers in technology, engineering, construction and the growing AI sector”.
Danny Quinn, the managing director at DataVita, said: “There is plenty of talk about AI infrastructure just now. 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. We have been doing this in Scotland for more than ten years. The UK needs its own AI capability, built here and run here, and we are grateful to the National Wealth Fund and our lenders for backing a project that is already delivering it.”
Kanishka Narayan, the UK AI minister, said: "AI is already helping scientists discover new medicines, supporting better public services and helping businesses get more done. 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.
"That's why today's announcements matter. They will help ensure Scotland is at the forefront of one of the biggest economic opportunities of our time, bringing investment, reindustrialisation and opportunities to communities like Lanarkshire.
"For local people, that means more than new buildings and technology. It means the chance to develop new skills, access new careers and benefit from the growth and investment that AI can bring."
The Scottish Economy Secretary, Stephen Flynn, 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 3400 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.
“We will continue to work closely with DataVita and Growth Zone partners to realise the full economic and employment opportunities of this investment over the coming years.”
