Nebius Invests £1.7 Billion in UK AI Infrastructure at Kao Data

In a significant move for the UK's AI sector, Nebius has entered a 10-year agreement with Kao Data for a multi-megawatt infrastructure deployment at the Harlow campus, valued at £1.7 billion. This partnership aims to solidify the UK as a central hub for AI research and enterprise, in line with the government's AI Opportunities Action Plan.

Kao Data's Harlow campus, recognized for its focus on industrial-scale AI research, will host 22 megawatts of new AI cloud computing capacity. This deployment stands out not only for its size but also for its commitment to sustainability, as it will be powered entirely by renewable energy and utilize advanced cooling technologies to minimize water usage.

Supporting AI Innovation

The strategic alliance seeks to boost AI capabilities within the UK's leading academic and research communities. Nebius, a recognized leader in AI cloud services, plans to host its Nebius AI Cloud platform and managed inference service at this state-of-the-art facility. Andrey Korolenko, Nebius's Chief Product and Infrastructure Officer, highlighted the UK's growing significance in the global AI ecosystem, stating, "The UK is a major destination for AI and is becoming an important part of Nebius's global footprint. By bringing dedicated capacity to support inference workloads, we can enable UK AI builders and enterprises to achieve their AI goals."

This deployment will also feature the Nebius Token Factory, a production-scale platform that facilitates the deployment and optimization of open AI models. The infrastructure is expected to meet the rising demand for AI capabilities amid a challenging economic backdrop, showcasing the resilience and growth potential of the UK AI sector.

A Sustainable Future

Kao Data's commitment to sustainability is a key element of this collaboration. With facilities powered by 100% renewable energy and equipped with the latest energy-efficient cooling systems, the Harlow campus aligns with Nebius's focus on sustainable AI development. Spencer Lamb, CEO of Kao Data, stated, "Today marks a significant milestone in the evolution of the Kao Data portfolio and a landmark moment in the UK's AI ambitions. This partnership proves that despite challenging macroeconomic circumstances, demand for industrial-scale, UK-based, advanced AI remains high."

As part of this agreement, Kao Data also plans to expand its data center footprint, with developments in locations such as Park Royal, Greater Manchester, and additional capacity in Harlow. This expansion will play a vital role in addressing the growing demands of AI-driven workloads within the UK.

Implications for the AI Landscape

The £1.7 billion investment by Nebius highlights a broader trend of increasing investment in AI infrastructure across the UK. By enhancing domestic compute capacity, Nebius's partnership with Kao Data aims to strengthen the capabilities of British organizations and drive economic growth through AI innovations. As the demand for AI solutions continues to surge, the Harlow campus is well-positioned to serve as a pivotal site for AI research and enterprise.

With the UK government actively supporting AI initiatives, this deployment represents a critical step in reinforcing the nation’s status as a leader in AI technology. The collaboration between Nebius and Kao Data not only emphasizes the importance of sustainable practices in tech infrastructure but also sets the stage for future advancements in AI and cloud computing across the region.