OpenAI’s decision to postpone its flagship investment in Britain is a wake-up call for the Government. [some emphasis, links added]
A spokesman for the US company stated that the project would move ahead “when the right conditions, such as regulation and the cost of energy, enable long-term infrastructure investment.”
It is hard to think of a more quietly telling dismissal of this Government’s approach to industrial strategy.
The project was announced in September during Donald Trump’s state visit and viewed as a coup for the government, which has gone to great lengths to portray itself as bringing technology investment to Britain and has stated its ambition for Britain to be “an AI maker, not just a taker”.
This vision has now collided with reality.
British industrial users face the highest electricity costs in the developed world, 63 percent above those in France and 27 percent above those in Germany, driving up the cost of operating energy-intensive data centres.
Getting them built is also challenging: between grid connection delays and the planning system, the lag between investment decisions and breaking ground on projects can be daunting; the Edinburgh council’s decision to explore a ban on all data centre construction is indicative of the obstacles companies face.
[Indeed,] these challenges may not have been the only factor behind the decision to drop the project. With OpenAI facing a financial squeeze and renewed pressure from rival firms, it may have seized upon an excuse to reduce its commitments.
Nevertheless, its criticisms are valid: Britain’s energy and planning systems have made the UK a hard country in which to invest.
Alarm bells should be ringing in Downing Street.
Read more at The Telegraph
