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UK government insiders say AI datacenters may be a pricey white elephant

(2025/02/12)


The British government is pressing ahead with "AI Growth Zones" amid fears the rush to build datacenters to power AI could backfire and leave the countryside littered with expensive high-tech "white elephants."

Local and regional authorities were asked this week to put their communities forward to become "dedicated hotbeds for AI infrastructure development" and "attract millions in private investment," as part of the [1]AI Opportunities Action Plan first detailed last month.

UK prepared to throw planning rules out the window for massive datacenters [2]READ MORE

In particular, the game plan is to focus on de-industrialized areas of the country that have "land and infrastructure standing ready for redevelopment" to become hotbeds of AI Growth Zones.

Interest is "already building," or so we are told, for high-potential locations in Scotland, Wales, and the North East and North West regions of England.

Ideal candidates will have sites with "large existing power connections (with a current capacity of 500-plus MW) or a clear vision on how energy capacity can be increased," according to Scotland Office Minister Kirsty McNeill, or they will be suitable sites for energy infrastructure such as nuclear reactors, solar stations and wind farms, or battery storage.

[3]

The Register understands that at least one datacenter project under consideration is at a decommissioned power station, which has the advantage of an existing connection to the electricity grid, and may be quicker to bring online than building a server farm from scratch.

[4]

[5]

Not all of "AI Growth Zones" are expected to be housed in de-industrialized areas. The first one announced last month will be in Culham, Oxfordshire, home to the UK's Atomic Energy Authority. Not surprisingly, this site will also serve as a "testing ground to drive forward research on how sustainable energy like fusion can power our AI ambitions," the government said at the time.

We asked the Department for Science, Innovation & Technology (DSIT), which is overseeing the AI Opportunities Action Plan, if anything else was in the offing for this rural area – such as a massive AI datacenter campus or three, perhaps?

[6]

A spokesperson told us the department was not in a position to disclose details at this stage. This won't be reassuring for the folk of Culham (population 453), or the nearby village of Clifton Hampden (population 662), which is actually closer to the Atomic Energy Authority site at Culham Science Centre, especially as AI Growth Zones introduce measures aimed at "speeding up planning permission" – meaning that [7]local objections are likely to be simply overruled .

We also asked the local Member of Parliament if he was aware of any plans to erect data facilities in the area and whether he was happy with these, but no response was received by the time of publication.

While bit barns are a crucial part of the modern technological economy, building more in haste may not deliver the desired results.

[8]

"Creating more datacenters will not necessarily lead to higher AI usage in the UK. Certainly, when it comes to the use of AI in public services, there are no clear timelines on how quickly the technology can be implemented, and there is a risk that the impact of AI may be far less than expected," TechMarketView Principal Analyst Simon Baxter [9]previously said .

This point was raised in a panel discussion at the [10]AI Action Summit in Paris this week, where Alexander Vollert, CEO of AXA Group Operations, claimed AI solutions that have worked well are based on task-specific "classic" AI models rather than the large language models (LLMs), on which all the recent hype and investment has centered.

[11]London has 400 GW of grid requests holding up datacenter builds

[12]Datacenter energy use to more than double by 2030 thanks to AI's insatiable thirst

[13]Real datacenter emissions are a dirty secret

[14]Mega UK datacenter greenlit, but we still don't know who's moving in

Small wonder that one government insider, talking on the condition of anonymity, told The Reg there is a fear that the government's push for AI datacenter construction may not deliver on expectations, leaving costly high-tech "white elephants" all over the country.

Dr Sasha Luccioni, a research scientist at Hugging Face and another Paris panel member, warned that the energy required for AI is "becoming a point of tension between citizens and datacenters." This is particularly so in Ireland, where [15]21 percent of the country's electricity was consumed by these datacenters during 2023.

This could be exacerbated by the fact that bit barns actually deliver very little employment in the local area, once all the construction has finished and the site becomes operational. On average, datacenters [16]create just 30 to 50 permanent positions, while larger facilities may employ up to 200 people . The UK government's own announcement refers to "thousands of new jobs" being created and spread across the entire country.

Investigative journal Private Eye notes in its latest issue (No. 1642) that among those standing to benefit from all this AI investment will be "a series of AI businesses" managed by Entrepreneur First, which is controlled by Matt Clifford, the man who was hired to create the government's AI Opportunities Action Plan.

Following any expressions of interest from local and regional authorities, the government said it will open the formal selection process in the spring, with the first batch of "AI Growth Zones" to be announced in the summer.

We suspect the local citizens can't wait for builders to start constructing houses for their new AI overlords. ®

Get our [17]Tech Resources



[1] https://www.theregister.com/2025/01/13/uk_government_ai_plans/

[2] https://www.theregister.com/2025/01/13/uk_datacenter_planning_rules/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z6zTs0x1tDYrMVKhYc6G2wAAARM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z6zTs0x1tDYrMVKhYc6G2wAAARM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z6zTs0x1tDYrMVKhYc6G2wAAARM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z6zTs0x1tDYrMVKhYc6G2wAAARM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2024/09/17/objections_to_datacenter_builds_cni/

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z6zTs0x1tDYrMVKhYc6G2wAAARM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[9] https://www.theregister.com/2025/01/13/uk_government_ai_plans/

[10] https://www.elysee.fr/en/sommet-pour-l-action-sur-l-ia

[11] https://www.theregister.com/2025/02/10/london_has_400_gw_of/

[12] https://www.theregister.com/2025/02/07/datacenter_energy_goldman_sachs/

[13] https://www.theregister.com/2025/01/22/datacenter_emissions_not_accurate/

[14] https://www.theregister.com/2025/01/24/uk_mega_datacenter_approved/

[15] https://www.theregister.com/2024/07/25/ireland_datacenter_power_consumption/

[16] https://goodjobsfirst.org/data-centers/

[17] https://whitepapers.theregister.com/



Fonant

Generative AI, from LLMs, is just bullshit: no accuracy or truthfulness guaranteed. Great for generating bullshit where the content doesn't matter, but mostly useless for anything else.

"AI" already has a bad reputation amongst the general public, who have quite sophisticated bullshit-sense. When will government realise they're being conned by Big Business?

John Robson

""AI" already has a bad reputation amongst the general public, who have quite sophisticated bullshit-sense."

Nope - there is no BS sense in most of the population, look at the rise of Nigel Garbage and co.

Anonymous Coward

"When will government realise they're being conned by Big Business?"

Government don't care about wasted investment, because the waste isn't counted in growth figures. With the current desperation to find growth, government are looking to bump up GDP. Business investment and government spending contribute directly. Whilst the quickest way of bumping up GDP and finding some growth is government spending (eg build a national high speed road network, and a national high speed rail network) that's constrained by government borrowing costs. If credulous tech companies can be persuaded to invest a few billion in DCs, then it doesn't matter if they deliver any benefits, or even if they stay open, or the investing company goes bust.

Unfortunately, one of the reasons we have a growth problem is that previous governments have also disregarded the importance of value creating investments. So defence mis-spends and overspends increase GDP, but produce nothing and result in higher borrowing costs for government; Misguided policies like policy support for solar power result in billions being spent on that, and because that's commercially funded it has the even more toxic effect of crowding out proper, risk based commercial investment.

MonkeyJuice

"So defence mis-spends and overspends increase GDP, but produce nothing"

Not quite true. They can occasionally produce [1]long queues at the hearing clinic , for example.

[1] https://www.bbc.co.uk/news/uk-wales-58470143

andy gibson

"When will government realise they're being conned by Big Business?"

Not conned when said businesses have given donations to Labour.

Like Dale Vince's solar farm approval. It just so happened he gave £5 million to Labour. What an amazing co-incidence!

(For the record I also believe all other political colours had / have / will have their snouts in the same trough)

PB90210

The previous lot would have given him a peerage as well

Arise Lord Vince of Solarfarm...

Nice try!

Locomotion69

Ideal candidates will have sites with "large existing power connections (with a current capacity of 500-plus MW) or a clear vision on how energy capacity can be increased,"

which ignores the (white) elephant in the room entirely!

Nothing to be said...

Bebu sa Ware

Icon says it all!

Somebody should not have had that curry on Sunday =>

Evil Scot

The only place I want to see AI is in the Pedestal or server closet.

I just want early identification of anomalies on chest X-Rays etc.

Or a home assistant that can operate at the same speed and reliability that I used to have just over a year ago. (My Jetson style home may soon be Jetson powered)

AI…. To do what???

Rich 2

It seems that everyone in the race to build “AI” (ie LLM) infrastructure never actually has any idea whatsoever about what it’s going to be used for!

It’s infuriating!!! Especially when it’s a government department wanting to spend MY money

“Let’s build an AI bit barn. Fuck Yea!!!”

And you’re going to do WHAT with it?

“…silence…..”

Re: AI…. To do what???

Zippy´s Sausage Factory

Their idea of what they're going to do with it is rent capacity to people. Which works well until there's more capacity available for rent than people wanting to rent it, which is when the race to the bottom* starts.

* - and no, I don't mean employing Richie and Eddie as IT admins.

Re: AI…. To do what???

steelpillow

> - and no, I don't mean employing Richie and Eddie as IT admins.

Oh, I do! I do!

Richie and Eddie meet The IT Crowd, what could possibly go wrong?

Re: AI…. To do what???

Peter Gathercole

It strikes me that LLM AI trained on text is really a rather poor aspect of AI to concentrate on.

What AI can do, and where it should be deployed, is in self learning (training) on things other than text. It is this self-training that will be it's benefit, not the training data itself.

If we have a 'real' AI solution, we should be able to point it at any data set, and give it some goals (such as 'these are examples of what we're looking for'), and let it loose.

Examples which may be good or bad include:

Identification of potential cancers from X-rays and other scans (good)

Tracking people from multiple video feeds (good and bad)

Spotting trends in weather formations, ice loss, floods etc (good?)

Analysing seismic data to spot potential earthquakes and tsunamis (good)

Accurate condensing of large datasets to allow rapid identification of information (be it legal, scientific or other data) (generally good but could be put to bad use)

The problem is that I don't believe we have such a thing as a general AI model which can take any data set. We have ones that can learn text, and some that do language, image and music processing, together with some tools that can take the condensed data and generate something similar to it's input data. But this is really not the bit of AI that we need, even if these are things that grab attention.

But even if we could have a real general AI, one of the problems is, and will remain to be, is initial trust in what is produced. For the initial deployment, we will want to check the results to identify things that should be spotted but aren't, and also false positives and 'hallucinations'. And once we get past this stage, we will need to have an "explain your decision" function, so that it does not look like the AI has just had a 'hunch'.

Unfortunately, businesses and governments are being jumped into building something that can do what we see today, and are suffering from FOMO about not getting on the band-wagon.

We should be looking at what we want to do tomorrow, or next year or next decade, but so few people have a vision that can look beyond today.

Re: AI…. To do what???

Anonymous Coward

all the examples, you give are useless when AI isn't reliable.

I tested some AI on musk's nazi salute, it tried to gaslight me, it pretended all the video's were possibly blurry or faked and that "sources" said it wasn't, and told me fact checkers had said it wasn't (until I asked it to give me a link, then it admitted it lied) at which point it switched to saying the context was the reason, until I pointed out the nazi salute was to praise an authoritarian, even then it tried to excuse the salute.

That sort of invented information is very dangerous.

AI is just garbage in/garbage out

even a small error bar becomes incredibly important when the system is used in large scale!.

Re: AI…. To do what???

Locomotion69

I know exactly where AI will be used for: more data harvesting (on you) so that AI customers (not you) can be informed (about you), and they will be able to target (you) with adds and "exclusive offers", a.k.a. going after (your) money.

That is why "everybody" should have an AI-enabled PC - to do your own harvesting on their behalf.

Maybe I am too pessimistic.

Re: AI…. To do what???

Anonymous Coward

You're assuming the AI wants to work for us and doesn't want us to work for it.

There is no business case for the investment amounts that have been mooted.

Tron

AI is likely to be a much more expensive version of the Metaverse and NFTs. There is no business case for the investment amounts that have been mooted. Nobody will pay that much extra for tech of questionable value and utility. What is termed 'AI' will find a niche, and LLMs may be used for human/computer interaction, but it is not the gamechanger it is being billed as.

Along with Australia and the EU, the UK is already cracking down on internet/tech access with censorship/surveillance legislation, so investing in tech in these areas may no longer be sensible. Use of tech in the UK may decline, looking ahead, as access to online services and sites is increasingly banned by the state. If you develop here, you should consider an early IP sale to a US company, as much of the next gen of tech may not be reliably legal in these areas on release/maturity.

Re: There is no business case for the investment amounts that have been mooted.

Anonymous Coward

"Along with Australia and the EU, the UK is already cracking down on internet/tech access with censorship/surveillance legislation, so investing in tech in these areas may no longer be sensible."

Better invest my pension in the publishers of Razzle, Fiesta and the like, or the companies mailing them out in brown envelopes....

Note for overseas readers: Probably best not to search for those publications on a work computer. Not only will the themes cause all enterprise filtering and monitoring to sound the klaxon, you might be very disappointed in these exceptionally down-market journals.

Re: There is no business case for the investment amounts that have been mooted.

Andy The Hat

"Better invest my pension in the publishers of Razzle, Fiesta and the like, or the companies mailing them out in brown envelopes....

Note for overseas readers: Probably best not to search for those publications on a work computer. Not only will the themes cause all enterprise filtering and monitoring to sound the klaxon, you might be very disappointed in these exceptionally down-market journals."

I always thought they were the bottom end of the market too ...

New bit barns

ChrisElvidge

Local and regional authorities were asked this week to put their communities forward to become "dedicated hotbeds for AI infrastructure development"

Can Local Authorities put their communities forward for "Never here", too?

How many bit barns are required, really? What is the 'competition' for AI really about?

Re: New bit barns

short

Since my bit of countryside (Walpole) got 'blessed' with an extra substation, we're also lined up for 2 HVDC-AC converter stations, a synchronous condenser (which seems to be neither synchronous, nor a condenser) and a now a gas fired power station, all in the same couple of hundred of acres (on prime agricultural land they're just compulsorily purchasing). No doubt any fields that don't go in this first rush will get covered in datacenters, since there'll be oodles of power and the locals will be all protested out.

So, from my pov, if you see the national grid helicopter hovering near you, just sell up and move before they publish plans, you're in for a decade of shit while they plan then build it, then continuous shit afterwards.

Re: New bit barns

Michael Strorm

It's been said before, but it bears repeating as often as necessary... datacentres are a shitty deal for local communities wherever they're based.

They provide *very* few local jobs relative to their massive size, and even fewer high value ones- virtually everyone using them for the high-tech use they were built for will be doing so remotely. That even goes for much of the support. (*)

Yet, for all that, they're highly demanding and disruptive on local infrastructure- especially when it comes to power- and generally large and intrusive in the places where they're built.

No thanks.

(*) The only-slightly-exaggerated example I use is that a data centre will require two local employees- a security guard and a dog. The dog is there to stop the security guard touching anything. (Yes, I ripped that off an old joke about aeroplanes).

To be expected

codejunky

This cant be a shock that government will likely waste money on the latest fad. Leave that to the private businesses that can go bankrupt if it isnt worth doing.

Re: To be expected

dvd

Governments are always fascinated by tech covered in flashing lights that they don't understand.

Re: To be expected

Noel Morgan

but will the machines go ping! ?

What, you mean to say...

Michael Strorm

...that a FOMO-driven push towards yet another technology that politicians don't actually understand (despite kidding themselves that they do after having read a couple of New Scientist articles about it) will lead to white elephants?

I don't think that's very likely- after all, we all remember how important the blockchain was going to be just a few years ago, and it's not like *that* magical panacea ended up forgotten about when the next technology-du-jour came along, is it?

EI-AI-OH?

Boolian

Those are some numberwang employment figures aren't they? In what world are even 20 people employed on a server farm, far less an AI farm? Enquiring minds would like to know.

The last huge server farm I was 'employed' at consisted of me, and I wasn't there. I was vaguely aware of a bare handful of other 'employees' who also weren't there. Our function was mainly to not be there and actually to be employed in completely different roles in another post code entirely.

Occasionally, I would be asked to nip along and kick the tyres, perhaps swap out a UPS, or blade and that was about it. What is it about an AI farm which requires anywhere between 20-200 personnel in the local vicinity?

My guess is there is nothing special. After commissioning, any employment opportunities will be over the hills and far away; except for the odd IT, or Leccy Board contractor who can nip along and change a lightbulb after lunch. Perhaps someone would care to enlighten me?

Re: EI-AI-OH?

short

Maybe 20 people is 200 on the construction site for 1/10 of the operational life?

My question is - what are we going to do with these buildings, when they empty out like phone exchanges. I get the feeling we're in the anti-sweet-spot of AI - massively inefficient solutions to nebulous (at best) requirements.

They'll make terrible accommodation. Maybe indoor farming can have another go, if the buildings come for free? You should be able to load-shed your lettuce's lighting for a few hours, so get nice cheap power.

Re: EI-AI-OH?

phuzz

Did you not have a security bod?

And for 24/7 security, you're going to need about three times as many bods.

So there might have been as many as four or five people employed there!

Three Wrongs

bernmeister

"fusion can power our AI ambitions," the government said at the time." Three wrongs dont make a right. I am not a techno-skeptic but I dont think government, AI and fusion should all be in the same sentence.

AI datacenters may be a pricey white elephant

Howard Sway

Look on the bright side : all those machines stuffed with high end GPUs will make the most kick-ass indoor gaming centres ever built.

Re: AI datacenters may be a pricey white elephant

Anonymous Coward

not even that, the GPU's don't have the right output interfaces. nevermind the lack of CPU.

(you might be able to turn it into a shitty streamed laggy remote thing, i.e nvidia now)

Non-infrastructure development

Red Ted

The (British) government's record on development of anything outside infrastructure seems to have a really poor record.

Picking aviation as an example, I give you R101, the Brabazon and Concorde. Interestingly at almost exactly 20 year intervals.

Re: Non-infrastructure development

PB90210

And they're not too hot on the infrastructure thingy...

HS2... 'smart' motorways... widening the main road past Stonehenge...

Naming competition

Doctor Syntax

When the deserted sites have lost their grid connection, the security post is empty, the signboard is dangling because some of the fixing blots have rusted and more rust is trickling down the walls of the building what are we going to call these site? Starmers, Reeves or Rayners?

Re: Naming competition

PB90210

Rishis...

(had he taken up a job in California yet?)

Look...

xyz

Local government can't even get an ERP system off Oracle that works so christ knows how clued up they'll be with AI. Chucking in the EU's couple of hundred billion yesterday, we must be up to about 100 quid cost for every person on the planet. Gimme 100 quid and I promise never to use AI. I promise.

> how sustainable energy like fusion can power our AI ambitions

mpi

Excuse me...what?

Fusion Power?

You mean the energy source that has been researched since the 50s? For which we are stll building the first few PURELY EXPERIMENTAL reactors, that are glad if they can maintain a plasma for more than a few seconds? Never mind actually producing power?

Is that the "fusion power" we are talking about here?

Deep Shit

steelpillow

Interesting article in the current New Scientist, explaining how DeepSeek uses various tricks to punch way above its hardware weight. Seems downloading its Open Source code will be way quicker, cheaper, easier and greener than trying to keep upscaling last year's tech for the next five.

Every nonzero finite dimensional inner product space has an orthonormal basis.

It makes sense, when you don't think about it.