BT and Nscale Plan UK Sovereign AI Data Centres

BT and Nscale have set out plans to develop sovereign AI data centres across the UK, placing telco infrastructure at the core of how AI services are deployed and managed.

The initiative will use NVIDIA’s full stack AI infrastructure, and builds on BT’s nationwide network footprint.

Nscale intends to deliver up to 14 megawatts of AI data centre capacity across three existing BT sites. BT will provide the underlying infrastructure and connectivity, expanding the compute resources available in the UK as demand for AI processing increases.

The project extends BT Business’ sovereign platform, allowing organisations to run AI workloads within the UK's national borders and regulatory requirements.

How do telco networks underpin sovereign AI?

The role of telco networks is central to the project.

AI systems depend on high-capacity, low-latency connectivity to move large volumes of data between users, applications and data centres. Without this network layer, scaling AI services is difficult.

Jon James, CEO, BT Business, says: “The development of AI and data centre infrastructure is key to unlocking economic growth in the UK, and is only possible with the best, most trusted networks at the foundation.

“Digital sovereignty enables UK organisations to adopt the world’s leading technologies, while maintaining resilience and control in a rapidly changing world.

“Our collaboration with Nscale reflects BT’s unique position as the digital backbone of the UK – the only provider with the scale, capabilities and experience to enable the nation’s sovereign ambitions.”

Through this model, organisations can access AI compute without building their own infrastructure.

They can scale capacity when needed, while keeping data within UK jurisdiction. This is particularly important for sectors handling sensitive information, including healthcare, finance and public services.

The sites are designed to support a range of applications, from analysing sensitive datasets to enabling AI-driven services in critical industries such as energy and security. Telco connectivity ensures that these systems are both accessible and reliable.

Data centre expansion meets policy goals

The investment aligns with the UK Government’s AI Opportunities Action Plan, which focuses on expanding infrastructure while maintaining national control over data sovereignty and systems.

AI Minister Kanishka Narayan says: “To unlock the full benefits of AI, Britain needs more of the infrastructure that powers it.

“This investment in new AI data centres will give businesses and public services the tools they need to use AI at scale here in the UK.

“Building more of this on British shores strengthens our position in a highly competitive global market, supports high value jobs and ensures Britain can work with the best technologies in the world while growing our own capability at home.”

BT, Nscale and NVIDIA are also members of the UK Sovereign AI Industry Forum, a group of companies working with government to develop domestic AI infrastructure and skills.

The initiative reflects a wider effort to position the UK as a location for both data centre investment and telco-enabled digital services.

How BT's partnerships link compute and connectivity

The partnership brings together different parts of the AI ecosystem. Nscale focuses on modular data centre deployment, allowing capacity to be added in stages. NVIDIA provides the computing platform, while BT supplies the network infrastructure that connects everything.

Tom Burke, Chief Revenue Officer, Nscale, says: “Partnering with BT is a major milestone in supporting the UK’s AI ambitions and its position in the global AI economy.

“Telecommunications have a critical role to play in this shift – you can’t deliver AI at scale without resilient, high-capacity networks as the backbone.

“Together, BT’s nationwide digital infrastructure and Nscale’s modular, NVIDIA-powered AI data centre deployment will give organisations access to world-class compute, with the assurance that their data and operations can stay local.”

Anthony Hills, Director UKI, NVIDIA, says: “Telecommunications is at the core of sovereign AI, because secure, high-capacity networks are essential to unlocking the UK’s accelerated computing potential.

“By combining BT’s trusted nationwide infrastructure with Nscale’s AI data centres powered by NVIDIA, this collaboration expands access to sovereign compute under UK control, enabling telcos and their customers to innovate with AI while keeping sensitive data and operations in the country.”

The model reflects a closer link between telco operators and data centre providers, as AI services require both compute power and connectivity. Telco networks are becoming the foundation for delivering AI capabilities at scale within national boundaries.