Britain's AI Ambition Gets a Blackwell Boost from Nvidia

Nvidia has committed $683 million to Nscale, a UK-based AI infrastructure provider that previously operated as the AI arm of crypto miner Arkon Energy. This investment is part of a broader strategy to expand the UK’s AI capacity, with the company aiming to deploy up to 60,000 of Nvidia’s Blackwell GPUs in UK data centers by 2026. Nscale, which officially separated from Arkon Energy in May 2024, is now focused on delivering scalable AI infrastructure across Europe. The partnership aligns with UK Prime Minister Keir Starmer’s 50-point AI action plan, which seeks to establish the UK as a global leader in artificial intelligence. Nvidia CEO Jensen Huang described Nscale as a potential “national champion for AI infrastructure in the UK,” emphasizing the strategic importance of the venture.

The transition from crypto mining to AI infrastructure is not unique to Nscale. Several firms that previously operated in the energy-intensive world of digital asset mining have pivoted to AI. For instance, CoreWeave, once an Ethereum mining operation, now provides AI infrastructure services to major tech companies including Microsoft, Google, and OpenAI. Similarly, Canadian Bitcoin miner Hut 8 has expanded into high-performance computing services. These shifts highlight a growing trend where legacy crypto infrastructure is being repurposed to meet the rising demand for AI compute power.

Nscale itself has a strong track record in infrastructure development. In 2024, the company raised $155 million in a funding round led by Sandton Capital Partners and has since expanded its data center pipeline from 300 megawatts to 1.3 gigawatts, with plans to complete the full capacity by the end of 2027. Nscale’s infrastructure initially relied on GPUs from Advanced Micro Devices, but the company has since aligned more closely with Nvidia’s offerings. The firm also announced a GPU-as-a-Service (GPUaaS) partnership with Singtel, serving clients in Europe and Southeast Asia.

The investment by Nvidia is part of a larger trend of tech firms and governments investing heavily in AI infrastructure. In the UK, Microsoft and OpenAI have also pledged billions for AI development, with Microsoft committing $3 billion between 2025 and 2028. Meanwhile, global demand for AI infrastructure is being driven by the growing need for high-performance computing, as AI applications expand across industries. According to Gartner’s 2023 report, AI infrastructure—especially GPU clusters—is a key enabler for the development of advanced AI models.

Despite the optimism, the venture faces challenges, including securing sufficient funding and navigating post-Brexit labor constraints. Nscale plans to raise $2.7 billion over the next three years to finance its AI infrastructure expansion, while talent acquisition remains a hurdle due to increased difficulty in attracting European workers. Analysts like Nick Patience have noted that the UK’s investment in AI infrastructure is timely, as it positions the country to capitalize on its existing AI talent pool and venture capital ecosystem.

The broader movement toward “sovereign AI” mirrors earlier debates in the crypto space around decentralization and self-sufficiency. Just as crypto miners once sought independence from centralized financial systems, governments now aim to reduce reliance on foreign hyperscalers. The UK government has framed its AI infrastructure push as a strategic move to boost national resilience and economic growth through homegrown AI technologies.