OpenAI and UK Government Launch Sovereign Data Storage Plan

The UK Government and OpenAI entered a landmark agreement on October 23, 2025, allowing British businesses to store data on sovereign servers within the United Kingdom for the first time. Deputy Prime Minister David Lammy announced the initiative as a means to improve data privacy, accountability, and national resilience against cyber threats while stimulating economic growth.

As part of a broader AI adoption strategy, the Ministry of Justice will implement Justice Transcribe, an AI-powered transcription tool. This software will be used by over 1,000 probation officers and is projected to save 240,000 administrative days annually.

To support the necessary computing power, OpenAI, NVIDIA, and NScale are establishing Stargate UK. This infrastructure project involves the deployment of up to 31,000 NVIDIA GPUs, including installations at the Cobalt Park AI Growth Zone in the North East. Technology Secretary Liz Kendall noted the necessity of this infrastructure to power AI across British public services, while OpenAI CEO Sam Altman pointed to a fourfold increase in the usage of the company's products within the UK over the past year.